Ethics, Rules of Conduct and Professionalism Flashcards
1
Q
Rules 1
A
Members and firms must be honest, act with integrity and comply with their professional obligations, including obligations to RICS.
2
Q
Rule 1 Example behaviours
A
Not being improperly influenced by others and being transparent with clients about fees and services.
3
Q
Rule 2
A
Members and firms must maintain their professional competence and ensure that services are provided by competent individuals who have the necessary expertise.
4
Q
Rule 2 Example behaviours
A
Only undertaking work where a Member has the relevant knowledge, skills and resources and undertaking sufficient CPD each year.
5
Q
Rule 3
A
Members and firms must provide good-quality and diligent service.
6
Q
Rule 3 Example behaviours
A
Understanding clients’ needs and objectives before accepting work and communicating clearly with clients.
7
Q
Rule 4
A
Members and firms must treat others with respect and encourage diversity and inclusion.
8
Q
Rule 4 Example behaviours
A
Treating others courteously and respectfully and developing an inclusive workplace culture.
9
Q
Rule 5
A
Members and firms must act in the public interest, take responsibility for their actions and act to prevent harm and maintain public confidence in the profession.
10
Q
Rule 5 Example behaviours
A
Managing professional finances responsibly and responding to complaints promptly, openly and professionally.
11
Q
Appendix A: Professional obligations to RICS - Members
A
- Comply with the CPD.
- Cooperate with RICS.
- Promptly provide all information to Standards and Regulation Board.
12
Q
Appendix A: Professional obligations to RICS - Firms
A
- Complaints Handling Procedure
- Professional Indemnity Insurance
- Sole principal must make appropriate arrangements for professional work to continue in event of death etc.
- Cooperate with RICS.
- Promptly provide all information to Standards and Regulation Board.
- Display business literature - ‘Regulated by RICS’
- Report to RICS any matter required under the ‘Rules for the registration of firms’.
13
Q
The RICS was formed initially as…
A
the surveyors club in 1792.
14
Q
The surveyors’ institution was founded on…
A
15th June 1868.
15
Q
Royal chartered gained on…
A
26th August 1881.
16
Q
Name changed to The Chartered Surveyors’ Institution on…
A
27th October 1930.
17
Q
Name changed to The Royal Institution of Chartered Surveyors on…
A
3rd July 1947.
18
Q
Motto of the RICS
A
‘Est Modus in rebus’ or ‘There is measure in all things’
19
Q
Useful way to remember 5 rules of conduct…
A
‘RRICS’ Respect, Responsibility, Integrity, Competence & Service.
20
Q
When did the new rules of conduct release…
A
February 2022
21
Q
Complaint Handling Procedure - What are the time scales for dealing with a clients complaint?
A
7 Days to acknowledge
21 Days to respond formally with a solution or we’re still dealing with.
Further 21 days…
22
Q
What are the terms and rules around setting up a regulated firm?
A
PII
CHP
Handling clients’ money
23
Q
Who is the current present of RICS?
A
Tina Paillet
24
Q
Why do we have rules of conduct?
A
These rules set out the standards of professional conduct and practice expected of members and firms registered for regulation by RICS.
25
What is the definition of Ethics
Having a higher standard than just avoiding a certain behaviour or practice because is illegal.
26
What is the royal charter and when was it granted
handed down by the king in 1881.
27
Royal charter > 10 bye laws > 10 regulations > rules of conduction
(bye law 5 and regulation 5 – conduct)
28
What’s the difference between professional statements and guidance notes?
Professional statement is mandatory, and a guidance note is a recommendation/best practice/accepted. This is being changed following the Bichard review to Professional Standards and Practice Information.
29
RICS professional standards
Set requirements or expectations for RICS members and regulated firms about how they provide services or the outcomes of their actions.
RICS professional standards are principles-based and focused on outcomes and good practice. Any requirements included set a baseline expectation for competent delivery or ethical behaviour.
They include practices and behaviours intended to protect clients and other stakeholders, as well as ensuring their reasonable expectations of ethics, integrity, technical competence and diligence are met. Members must comply with an RICS professional standard. They may include:
mandatory requirements, which use the word ‘must’ and must be complied with, and/or
recommended best practice, which uses the word ‘should’. It is recognised that there may be acceptable alternatives to best practice that achieve the same or a better outcome.
In regulatory or disciplinary proceedings, RICS will take into account relevant professional standards when deciding whether an RICS member or regulated firm acted appropriately and with reasonable competence. It is also likely that during any legal proceedings a judge, adjudicator or equivalent will take RICS professional standards into account.
30
RICS practice information
Information to support the practice, knowledge and performance of RICS members and regulated firms, and the demand for professional services.
Practice information includes definitions, processes, toolkits, checklists, insights, research and technical information or advice. It also includes documents that aim to provide common benchmarks or approaches across a sector to help build efficient and consistent practice.
This information is not mandatory and does not set requirements for RICS members or make explicit recommendations.
31
Different types of conflict a surveyor may face?
Party Conflict
Own Interest Conflict
Confidential Information Conflict
32
Clients’ permission to act on their behalf?
Informed consent.
33
Who makes final decision if conflict of interest?
Surveyor - you make final decision.
34
How do you measure your client’s satisfaction?
Verbal, review meeting, KPI, survey.
35
3 Important rules for regulated firms?
Complaints handling, PII and handling clients’ money.
36
How many obligations are there for members and firms?
3 members and 7 for firms.
37
Appendix A - Members
Members complete CPD, Cooperate with RICS, promptly provide all information.
38
Appendix A - Firms
Firms complaints-handling procedure ADR, PII, Locom in event of death etc, cooperate with RICS, provide all information, display appropriate literature, report to rics any matter bride etc.
39
That are the timescales re. dealing with a client’s complaint?
7 days to acknowledge, follow up communication made in 21 days. If client doesn’t like it then use a redress system e.g. CEDR. Complaints handing officer and complaints handing log. CHP free of charge. Understand your own CHP. Complaints handing 1st edition July 2016 – professional standard.
40
What are the rules about holding client’s money?
Security, clearly linked to client, held in separate client accounts. Client money handing 1st edition October 2019 - Professional Standard.
41
What do the letters PII stand for?
Professional Indemnity Insurance - Professional indemnity insurance requirements Version 9 Feb 2022 (Regulation)
42
Who does PPI primarily protect?
Protects the client from the surveyors negligence. i.e. missing a defect. UK PII requirements April 2022. Premium is based on turnover.
43
PII Cover?
£100,000 or less Min. £250K
£100,001 to £200,000 Min. £500k
£200,001 and above £1 mil.
the minimum level of indemnity based on the firm’s turnover in the previous year (or
estimated for a new firm).
PII policies work on a ‘claims made’ basis. This means that the policy covers claims that are
first made against the insured during the period of insurance regardless of when the negligent
act occurred. If the retroactive date of the policy is stated as ‘none’ then the policy is fully
retroactive and all former work carried out by the firm will be covered.
44
What is run off cover?
Covers for previous indemnity when company is dissolved. Claims after the company is closed up to 6 years legally could be 15 years.
45
Run off pool?
Pool of money for surveyors who struggle to get PII – low turnover.
46
Conflicts of interest 1st edition March 2017 matters to consider
Global professional statement, manage conflicts, conflicts to be declared to the parties, surveyors decision to act or not (take responsibility).
47
Informed consent
client authorises surveyor to act on their behave.
48
3 types of conflict
Party Conflict
Own Interest Conflict
Confidential Information Conflict
49
Sole Practitioner incapacity or death
A Locum Agreement.
50
What is a bribe?
An illegal inducement to influence behaviour.
51
What is Money Laundering?
Converting and investing illegally gained money into property.
Countering bribery and corruption, money laundering and terrorist financing 1st edition February 2019. Main points: Bribery Act and Anti ML Regs, written policies and procedures, compliance and ethics champions, politically exposed persons, whistleblowing, sample anti money laundering checklist – know your client checklist KYC checks.
52
Provide an example of an ethical/conflict of interest issue?
Offer of hospitality, asked to work on a job where you know someone who works there.
53
RICS International standards...
are Mandatory e.g. IPMS
54
RICS Professional statement are...
Mandatory e.g. Conflicts of interest and Property Measurement
55
Rule 1
Honest, integrity, comply with their professional obligations, including obligations to RICS.
56
Rule 2
– Maintain their professional competence and ensure that services are provided by competent individuals who have the necessary expertise.
Competency - Knowledge, Experience, Training.
57
Rules 3
Members and firms must provide good-quality and diligent service.
Sustainability – Balance economic, social and environmental benefits
58
Rule 4
Members and firms must treat others with respect and encourage diversity and inclusion.
Equality Act covers most of this. RICS treating everyone the same.
59
Rule 5
Members and firms must act in the public interest, take responsibility for their actions and act to prevent harm and maintain public confidence in the profession.
Heart of the royal charter, take a stand and flag. Protecting the public instilling confidence in the profession. Complaints. Cooperate with investigations. Act to resolve. Professional finances managed in responsible way.
60
Appendix A - Members
Professional obligations to RICS members are mandatory - CPD, cooperate with RICS, provide all information requested by the standards and regulation board, or those exercising delegated authority on its behalf.
61
Appendix A - Firms
1. complaints – handling procedure with ADR provider approved by RICS and maintain a log.
2. Previous and current professional work is covered by adequate and appropriate PI cover what meets the standards approved by RICS.
3. Professional work to continue in the event of their incapacity, death, absence from or inability to work. Locum is usually used to step – appropriately qualified professional to cover the work. Include access to client money account.
4. Firms must cooperate with RICS.
5. Firms must provide all information to standards and regulation board.
6. Firms must display business literature in accordance with RICS’ policy – donate that they are regulated by RICS.
7. Firms must report to RICS any matter that they are required to report under the rules for the registration of firms. – return to RICS – insured by, type of work, complaints handling procedure, client money accounts. Every 12 months as the responsible principle of firm.
62
Regulated practice division – i.e. council can apply – estates department.
Regulated area A – UK
Regulated area B – All other areas
63
RICS Logo requirements?
Logo used by regulated firms only, not allowed to have Chartered Surveyors in the official company name on companies’ house. Description about what regulated by RICS means. At least 25% must be RICS qualified. Must designate a responsible principle. Firm can register a part of department or practice area for regulation by RICS.
64
Mandatory registration for firms
provide surveying services to the public, operating in regulation area A, at least 50% of the firms principal are RICS members.
65
PII
Each and every claim basis, min. policy working or more comprehensive working, min. policy working is written on a full civil liability basis, min. level based on the firms turnover in the previous year (estimated for a new firm).
66
Buy insurance from...
the approved list supplied by RICS via a broker.
67
How much PII cover do I need?
Turnover min. PII
£100k or less £250k
£100,001 - £200k £500k
£200,001 – above £1 mil.
68
Run off cover
firm or person no longer wants to practice; insurance must be maintained for a period of time for work completed. Non-consumer work, 6 years after finished working. Consumer work (general public) £1mil after 6 years.
69
Merrett v Babb (2001)
firm went bankrupt, and the purchaser sued the chartered valuer. Never sign reports in your name, use firm name. Check firm has insurance cover for individual’s work.
70
CHP – Complaints handling procedure
Reflect the size, activities and structure of the business. be made available to all staff, understood, records of training. Openly shared. Regularly reviewed at a senior level. Be agreed with PII brokers/providers. Provide details of access to independent if firm cannot resolve i.e. 3rd party.
71
What to do when you Receive a complaint?
Who is making, one point of contact. Contents. Who are you giving information to. Context in terms of any losses. Next steps and timescales.
72
Mediation v arbitration - what is the difference?
Mediation – out of court method which is voluntary and confidential. An independent mediator helps both parties to work towards a negotiated agreement if possible.
Arbitration – out of court method where an independent arbitrator is appointed by the parties to make a decision which is usually confidential and binding.
Not ADR – Litigation – method of resolving a dispute where a judge decides the case in court.
73
What is clients’ money?
client money, you hold on their behalf – deposits warranties.
Clear linked to the clients to whom it belongs. Protected – insolvency, death, misappropriation, transfer.
Client money kept in a separate account and marked “Client” must appear in the name of the bank account. RICS periodically will come in and audit the accounts.
74
What are the types of conflicts of interest?
Party conflict – Two parties with a conflict
Own interest conflict – work doing with a client and you or your firm has interest in.
Confidential information conflict – information from one client must be kept confidential from another client i.e. competing bids for work, confidentiality of information.
75
What are the parts to Countering bribery and corruption, money laundering and terrorist financing?
Part 1 Mandatory requirements
Part 2 Guidance
Part 3 Supplementary guidance
76
Anti-bribery policy
Written policy on anti-bribery including risk assessment. Register for gifts, hospitality etc. Clear guidance. Declare items i.e. gifts.
77
Gifts and hospitality – Employers policy – best way to answer questions
politely decline gifts, hospitality etc. or anything offer to you.
78
Money Laundering & Terrorist financing written policy to include...
high risk situation, identify PEPs, PSCs, customer due diligence.
Appropriate governance and systems.
Be aware of training/regulation.
79
The bribery Act 2020 Applies to?
UK and overseas.
80
Which of the 5 Rules of Conduct includes dealing with conflicts of interest?
Rule 1 has the example behaviour of "1.3 Members and firms identify actual and potential conflicts of interest throughout a professional assignment and do not provide advice or services where a conflict of interest or a significant risk of one arises, unless they do so in accordance with the current edition of Conflicts of interest, RICS professional statement."
81
Which of the Rules of Conduct has an example behaviour relating to avoiding discrimination?
An example behaviour of Rule 4 is "Members and firms treat everyone fairly and do not discriminate against anyone on any improper grounds, including age, disability, gender reassignment, marriage or civil partnership, pregnancy or maternity, race, religion or belief, sex or sexual orientation."
82
What part of the Rules of Conduct contains what RICS requires the obligations of members and regulated firms have to them?
Appendix A.
83
Which of the RICS Rules of Conducts promotes sustainability?
Rule 3 contains the following example behaviour: "3.10 Members and firms, when advising clients about projects, encourage solutions that are sustainable in that they minimise harm and deliver balanced economic, social and environmental benefits."
84
The Rules of Conduct apply to all members and firms regulated by RICS as defined in Bye-Law?
5.1 References to ‘firms’ means firms regulated by RICS. All members include (a) Chartered Members, comprising: (i) Fellows; (ii) Professional Members; (b) Non-Chartered Members; and (c) Honorary Members.
85
Bye-Laws and Regulations means that Chartered Surveyors must conduct themselves in a...
'manner befitting membership of RICS'
86
CPD - All members must undertake?
20 hours each year - at least 10 hours must be formal.
Every 3 years CPD relating to Ethics.
87
What is a Bye Law
a rule made by a company or society to control the actions of its members.
88
How many Bye Laws are there?
10
