Ethics, Rules of Conduct and Professionalism Flashcards
When did the new Rules take effect?
2 February 2022
You mention the RICS Rules of Conduct, what are the five Rules?
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
Why did they update the Rules?
To simplify and consolidate the Rules for Firms, Rules for Members and the five global professional and ethical standards. They also provide examples
What does Rule 1 mean to you?
Being honest, transparent and trustworthy. In practice relates to perhaps bribery and conflicts of interest.
What does Rule 2 mean to you?
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
What does Rule 3 mean to you?
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
What does Rule 4 mean to you?
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.
What does Rule 5 mean to you?
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
You say you attended a webinar by UCEM on Ethics, what did you learn from it?
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
What is the RICS
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
Who is the CEO of the RICS?
Justin Young
Who is the President of the RICS?
From January 2024, it isTina Paillet
What are the professional obligations for RICS members?
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
What are the obiligations of RICS regulated firms
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
What are the three types of Conflicts of interest
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
What would you do if there was a potential conflict?
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
You mention PS2 of the Red Book, what is covered by this?
Conflicts of interest, ensuring objectivity and independence when undertaking valuation work
For Project Felix, how did you securely store the data?
The folder was secured on our server which is held on a virtual private network (VPN).
What is a Confidential List?
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.
Is there another type of list?
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
What was the error you found for the valuation of the Gatwick Airport hotel?
It was not material and related to the presentation of the accounts in the report.
I see you had a complaint - why was there a complaint?
The client had an unsuccessful planning application which included the viability assessment.
On what basis was it concluded that there was no negligence?
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.
Describe your company’s Complaints Handling Procedure?
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.
Who is Christie & Cos independent dispute resolution provider?
The Centre for Effective Dispute Resolution
What is required for a CHP form?
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
What is a bribe?
An exchange of something of value for someone doing or agreeing to do something improper
Is a bribe a criminal offence?
Yes
What is the punishment for bribary related offences
up to ten years in prison and/or unlimited fine
What is Christie & Cos policy on gifts and hospitality?
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
What do you do if there are any concerns of Bribery?
Report to your employer internally or to RICS regulation
What is Money Laundering
Proceeds of criminal activities are disguised and converted and then realised as legitimate assets
What professional standard deals with money laundering
Countering Bribery and Corruption, Money Laundering and Terrorist Financing
What does C&Co do to prevent the money laundering?
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
What are the penalties for not complying with money laundering?
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
What did you learn from your CHP experience?
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”.
