Ethics, Rules of Conduct and Professionalism

Question 1

When did the new Rules take effect?

Answer 1

2 February 2022

Question 2

You mention the RICS Rules of Conduct, what are the five Rules?

Answer 2

Members and firms must:
1. Be honest, act with integrity and comply with professional obligations, including obligations to the RICS
2. Maintain their professional competence, and ensure that services are provided by competent individuals who have the necessary expertise
3. provide good-quality and diligent service
4. treat others with respect, and encourage diversity and inclusion
5. act in the public interest, take responsibility for your actions and act to prevent harm and maintain public confidence in the profession

Question 3

Why did they update the Rules?

Answer 3

To simplify and consolidate the Rules for Firms, Rules for Members and the five global professional and ethical standards. They also provide examples

Question 4

What does Rule 1 mean to you?

Answer 4

Being honest, transparent and trustworthy. In practice relates to perhaps bribery and conflicts of interest.

Question 5

What does Rule 2 mean to you?

Answer 5

Well it relates to professional competence, and prior to accepting any valuation instruction I would make sure that i have the necessary skills, understanding and knowledge to undertake the valuation before accepting, this is also a requirement of the Red Book

Question 6

What does Rule 3 mean to you?

Answer 6

Rule 3 relates to service, and for me this means any work carried out should be thoroughly researched and comprehensively undertaken, ensuring that the client is receiving the best possible advice. I would also make sure that my work has been checked by a competent colleague before delivering to the client

Question 7

What does Rule 4 mean to you?

Answer 7

To me this means treating everyone equally, whether thats internally with colleagues and working in a team, or when dealing with clients - not to discriminate and give everyone a fair chance.

Question 8

What does Rule 5 mean to you?

Answer 8

Realising that by being associated with a professional body such as the RICS, i have a responsibility to uphold its name and consider how my actions could affect the RICS and the public

Question 9

You say you attended a webinar by UCEM on Ethics, what did you learn from it?

Answer 9

It was an interactive work shop that talked about the Rules of Conduct and ethical dilemnas such as being truthful on your CV, whistleblow on bad practice, telling the truth about being late for a meeting and taking shortcuts to make a job more profitable

Question 10

What is the RICS

Answer 10

The royal institution of chartered surveyors - a global professional body within the built environment sector.It is has a Royal Charter and is Governed by various councils and boards

Question 11

Who is the CEO of the RICS?

Answer 11

Justin Young

Question 12

Who is the President of the RICS?

Answer 12

From January 2024, it isTina Paillet

Question 13

What are the professional obligations for RICS members?

Answer 13

Must comply with CPD requirements, which are 20 hours of continuing professional development per year. Must cooperate with the RICS, and lastly provide all information requested by the Standards and Regulation board

Question 14

What are the obiligations of RICS regulated firms

Answer 14

Must have a complaints handling procedure in place, which includes an alternative dispute resolution provider approved by the RICS, and maintain a complaints log.

Must have adequate and appropriate professional indemnity cover that meets the standards approved by the RICS

Firms with a sole principal must make arrangements for work to continue in the event they cant continue to work.

Must cooperate with the RICS

Provide all information reasonably requested by the RICS.

Must display on their business literature the RICS logo

Must report to the RICS any matters required to

Question 15

What are the three types of Conflicts of interest

Answer 15

Party conflict - where a firm accepts two or more assignments that are related to the same transaction. For example, acting for the buyer and the seller of a property. Duty owed to different clients conflict

Own interest conflict - where the duty of care owed to a client conflicts with a personal interest, say i have shares in a listed company that we may be acting for

confidential information - obligation to provide information to one party conflicts with confidentiality agreements with another client

Question 16

What would you do if there was a potential conflict?

Answer 16

I would either seek informed consent and discuss measures to undertake the instruction without compromising the duty owed to the client, or if there is a material risk would decline the instruction

Question 17

You mention PS2 of the Red Book, what is covered by this?

Answer 17

Conflicts of interest, ensuring objectivity and independence when undertaking valuation work

Question 18

For Project Felix, how did you securely store the data?

Answer 18

The folder was secured on our server which is held on a virtual private network (VPN).

Question 19

What is a Confidential List?

Answer 19

Used for projects where if the information was made public it would not impact the share price of a listed company. Members of the list are made aware that the information is confidential and that they should not discuss the project with anyone outside the list.

Question 20

Is there another type of list?

Answer 20

An insider list is higher standard of confidentiality as the information that is made public could impact the share price of a company, and is subject to the rules of the Financial Conduct Authority

Question 21

What was the error you found for the valuation of the Gatwick Airport hotel?

Answer 21

It was not material and related to the presentation of the accounts in the report.

Question 22

I see you had a complaint - why was there a complaint?

Answer 22

The client had an unsuccessful planning application which included the viability assessment.

Question 22

On what basis was it concluded that there was no negligence?

Answer 22

My duty of care was to provide an accurate assessment of whether the closed restaurant was viable without being influenced by the outcome of the planning application. It had also been provided in draft form and the client had an opportunity to provide feedback.

Question 23

Describe your company’s Complaints Handling Procedure?

Answer 23

Complaints can be emailed or written to the Compliance Officer. The complaint will be acknowledged within 7 working days and a full response will be issued within 28 working days. If escalating, contact information for the Global Managing Director is available, who reviews the case. Step three, if still hasn’t been resolved, it will get referred to an independent dispute resolution provider.

Question 24

Who is Christie & Cos independent dispute resolution provider?

Answer 24

The Centre for Effective Dispute Resolution

Question 25

What is required for a CHP form?

Answer 25

Must be approved by RICS

Transparent, clear and free of charge for the first stage.

Names and contact details of the investigating people.

Response within 28 days

Everything must be recorded

Must notify your PI insurers immediately

Question 26

What is a bribe?

Answer 26

An exchange of something of value for someone doing or agreeing to do something improper

Question 27

Is a bribe a criminal offence?

Answer 27

Yes

Question 28

What is the punishment for bribary related offences

Answer 28

up to ten years in prison and/or unlimited fine

Question 29

What is Christie & Cos policy on gifts and hospitality?

Answer 29

Only accept gifts /hospitality that are customary and reasonable/proportionate to the work done.

Gifts over £100 and hospitality over £250 must be recorded on a gift register.

Gifts over £200 and hospitality over £500 need prior authorisation before being accepted

Question 30

What do you do if there are any concerns of Bribery?

Answer 30

Report to your employer internally or to RICS regulation

Question 31

What is Money Laundering

Answer 31

Proceeds of criminal activities are disguised and converted and then realised as legitimate assets

Question 32

What professional standard deals with money laundering

Answer 32

Countering Bribery and Corruption, Money Laundering and Terrorist Financing

Question 33

What does C&Co do to prevent the money laundering?

Answer 33

We have Anti-Money Laundering training and the procedure for any transaction is to confirm the identity of the buyer and the seller, as well as the source of funds from the buyer before contracts exchange

Question 34

What are the penalties for not complying with money laundering?

Answer 34

up to 14 years in prison and or unlimited fine. Max five years and/or unlimited fine for tipping off a person if they are under suspicion

Question 35

What did you learn from your CHP experience?

Answer 35

It gave me first hand experience in dealing with a complaint, and through the review of the case revealed that in certain emails my language could have been more professional - for example signing off emails with “Thanks” instead of “Kind regards”.