Ethics, Rules of Conduct and Professionalism Flashcards
What are the five rules of conduct and when were the changes made?
The changes were made in February 2022
* Rule 1:Members and Firms must be honest, act with integrity and comply with professional obligations including obligations to RICS
* Rule 2: Members and firms must maintain their professional competence and ensure that services provided by competent individuals who have the necessary expertise
* Rule 3: Members and firms must provide good quality service and diligence
* Rule 4: Members and firms must treat others with respect and encourage diversity and inclusion
* Rule 5: Members and firms must act in public interest, take responsibility of actions, prevent harm and maintain public confidence in profession
Pick a rule of Conduct and provide an example of you have kept in line with Rule?
- I would like to pick Rule 1: Members and Firms must be honest, act with integrity and comply with professional obligations including obligations to the RICS.
- While assessing Compensation Event quotations with the subcontractor, I ensure to highlight all errors in calculations or formulas requesting that correct the issues and reissue the quotation.
What is the difference between ethics, integrity and Rules of Conduct
Ethics: moral principles that govern a person’s behaviour
Integrity: quality of being honest and having strong moral principles
Rules: a framework that allows people to act with Ethically and with integrity
What are the 5 Rules of Better Regulation?
- Proportionality
- Accountability
- Consistency
- Targeting
- Transparency
What are the requirements for Professional Indemnity Insurance cover?
- ‘each and every’ claim basis or aggregate plus unlimited round the clock reinstatement
- RICS’ minimum policy wording or more comprehensive wording.
- RICS sets minimum Levels of indemity and uninsured excess based on firm’s turnover in previous year
- Run off cover to be in place based on contract 6 years underhanded 12 years deed, RICS recommendation 15 years which is the minimum limit for a claim
- PII policy to be fully retroactive – all former works carried out by the firm will be covered
- Policy should cover for past and present employee, directors and partners
- Under written by a list insurer under RICS – Updated list of experience brokers
- Fire safety exclusions to be requested to RICS for approval (1st of May 2021 exclusion not apply for buildings 4 storeys or under
How does a company choose their insurance provider/broker?
RICS has issued a list of accepted experienced Insurance providers/ brokers.
What is the basis of that decides the limit of Professional Indemnity Insurance cover you need?
A company’s turnover in the preceding year.
How does a new company calculate what limit of insurance they need?
A new company uses their forecasted cost for the first year based on the business plan to calculate their insurance limit which can be later amended after the first year of business.
How does an existing company calculate their insurance limit?
A company uses the previous year’s turnover to calculate limit of insurance required
When did the changes to PI insurance limits come into effect?
May 2020
What are the limits of insurance?
PI insurance minimum limit of indemity is based on the Firm’s Turnover in the preceding year
If the Turnover is £100,000 or less then limit is £250,000
If the Turnover is £100,001 to £200,000 then limit is £500,000
If the Turnover £200,001 and above then the limit is £1,000,000
What is uninsured Excess and its limits?
It is the part of each insurance claim the firm must pay for itself.
PI insurance minimum limit of indemity is based on the Firm’s Turnover in the preceding year
if the Turnover is £10,000,000 or less then the limit is The greater of the 2.5% of the sum insured or £10,000
if the Turnover is £10,000,001 and above then there is no limit set
What is run off cover?
Run off cover is Profession insurance that covers historic liabilities of a business after it ceases to trade.
Do you think that a person carrying out surveying works regardless of working for a company should have PI insurance coverage?
Yes, they should because in the event the company ceases to exist the claimant is able to pursue the individual as determined in the case of Meruit Vs Babb
What is the required duration for run-off cover and RICS recommendations?
It is based on the contract – if underhanded then 6 years, if deed then 12 years however RICS recommends keeping for 15 years which limit when a claimant has the opportunity to legally bring a claim under the Limitation Act 1980
What is the minimum limit for run off cover?
1,000,000 (1 million)
Why should you have a claims handling procedure?
A claims handling procedure allows the public the opportunity to bring a claim of loss of money, goods or services.
A company can better manage their liabilities and is a insurance requirement.
Can you state the complaints handling procedure?
When a claim is received it should be acknowledged,
Professional insurance provider should be notified.
The claim has to be logged on a complaints log.
The company has 28 days to resolve the claim. If the claim takes longer then the claimant should be notified and updated on the developments.
Who should be notified in the event of receiving a claim?
Professional indemnity insurance provider
What should be available for a claimant if the claim is not accepted?
An independent redress which is an alternative option for the claimant to obtain relief.
Adjudication/ Ombudsman (independent redress)
What are the specific firms that are approved by RICS to act for Ombudsman?
The Property Ombudsman
Ombudsman services
What are the Adjudicating Nominating Bodies?
RICS: Royal Institute of Chartered surveyors
RIBA: Royal Institute of British Architects
CIArb: chartered instate of arbitrators
If an employer hand cash of 10,000 for a job that is completed, what would you do?
I would politely decline and request they put it into a bank account and carry out the transaction. I am however aware that I am able to accept up to 10,000 euros according to HMRC’s Money Laundering regulations.
What are the requirements to holding client money?
Money is protected and held safely in separate accounts identified with the owner’s name.
Client accounts have effective robust controls and systems. Client accounts should not contain any other sums other than what the client has paid into or replace money withdrawn in error. The client money should be immediately available regardless of interest. The client should be periodically notified of the status of the account.
