Ethics, Rules Of Conduct And Professionalism

Question 1

What is money laundering?

Answer 1

Money laundering is the action of concealing the source of proceeds of criminal activity to disguise their illegal origin. The process is also known as “cleaning” money. Money laundering could take place through hiding, transferring and or recycling illicit money through one or more transactions s or converting crime al proceeds into legitimate property.

Question 2

What is the key piece of legislation relating to money laundering in the UK?

Answer 2

The money laundering, terrorist financing and transfer of funds (information of payer) Regulations 2017.

If you suspect a party of suspicious activity, this is covered by the Proceeds of Crime Act 2010.

Question 3

What are some bodies within the RICS?

Answer 3

RICS Matrics - Aimed at newly qualified surveyors to give them a platform within the RICS including; APC support, CPD seminars, Networking. e.c.t

LionHeart - Based in Birmingham, lionheart is an independently run charity by our professionals for our professionals. They offer; financial support, free counselling, legal advice.

Question 4

What is the RICS CPD policy?

Answer 4

All members must undertake a minimum of 20 hours of CPD each calendar year. This is logged and submitted to the RICS. This demonstrates that its members maintain and enhance the knowledge and skills they need to deliver a professional service. Of the 20 hours, 10 hours need to be formal CPD.

Question 5

What is formal and informal CPD?

Answer 5

Formal CPD - typically professional courses, seminars and conferences, online seminars

Informal CPD - Shadowing professionals, Private Study, delivering presentations

See RICS decision tree

Question 6

What is the structure of the RICS

Answer 6

Privy Council > Governing Council > RICS Board - Standards & Regulation Board

Question 7

What is the governing council?

Answer 7

Governing Council is the highest governing body, setting out the global strategy and ensuring RICS fulfils its Royal Charter obligations. It provides strategic oversight on requirements for entry into the profession, and the setting and enforcement of professional standards so that we continue to deliver confidence in the built and natural environment. It also shapes our priorities as an influential thought leader, and provides high-level assurance on our operations as a sustainable business and professional body. The council is made up of elected members from across the globe.

Question 8

What is the Privy Council

Answer 8

The Privy Council acts as an independent decision-making body to the Queen that reports on the activity and performance of the RICS and other. The RICS’s bye-laws have to be ratified by the UK Government, through the Privy Council even if it approved by the majority of the Governing Council.

Question 9

What is a Royal Charter

Answer 9

A document that is signed by the king or queen of a country, and that gives an organization particular rights normally reserved for organizations that work in the public interest. The RICS was incorporated in 1881.

Question 10

What is the RICS Royal Charter

Answer 10

The charter sets out the objectives of the RICS: The objects of the Institution shall be to secure the advancement and facilitate the acquisition of that knowledge which constitutes the profession of a surveyor, namely, the arts, sciences….and to maintain and promote the usefulness of the profession for the public advantage in the United Kingdom and in any other part of the world

Question 11

What is The Royal Charter Bye-Laws

Answer 11

There are 10 Bye-laws, These Bye-laws and any Regulations apply to all members or where stated within the charter; a Firm, a Regulated Non-Member and any person covered by any agreement made under Article 20 of the Charter.

Question 12

How is the civil court system structured

Answer 12

Supreme Court,
Court of Appeal,
High Court of Justice,
County Court.

Question 13

How is the criminal court system structured

Answer 13

Supreme Court,
Court of Appeal,
Crown Court,
Magistrates Court,

Question 14

What is a civil law UK

Answer 14

Civil Law covers such areas as contracts, negligence, family matters, employment, probate and land law.

Question 15

What is criminal law UK

Answer 15

Criminal Law deals with behaviour that is or can be construed as an offense against the public, society, or the state examples are murder, assault, theft and drunken driving.

Question 16

What is the Supreme Court

Answer 16

The Supreme Court is a non-ministerial government department of the Government of the United Kingdom, serving as the final court of appeal in the United Kingdom for civil cases, and for criminal cases from England, Wales and Northern Ireland.

Question 17

What is Common law?

Answer 17

Common law, which is also known as case law or precedent is law that has been developed by judges, courts and similar tribunals. It is one of the many sources of the UK’s unwritten constitution.

Question 18

What are some of the RICS’s Bye-Laws

Answer 18

Membership and registration process, Designations of MRICS, FRICS etc and Conduct

Question 19

What is a conflict of interest?

Answer 19

There are three types of conflict of interest defined within the RICS Professional Statement on Conflicts of Interest 2018;

Party Conflict; – a situation in which the duty to act in the interests of a client or
other party in a professional assignment conflicts with a duty owed to another client
or party in relation to the same or a related professional assignment.

Own Interest Conflict; a situation in which the duty to act in the interests of a client in a professional assignment conflicts with the interests of that same RICS member/firm.

Confidential Information Conflict; – a conflict between the duty of an RICS member to provide material information to one client, and the duty of that RICS member to another client to keep that same information confidential.

Question 20

What is the audit committee?

Answer 20

The main purpose of the Audit Committee is to monitor the integrity and
effectiveness of the financial reporting, internal control and risk management systems, to review fraud and Raising Concerns policies and to review the effectiveness of and recommend the appointment of the external auditor. The Board is comprised of non-members (independent), members of RICS, and RICS Executives.

Question 21

What must members/firms do in relation to conflict avoidance?

Answer 21

Identify and manage conflicts and keep records of any measures taken to avoid a conflict.

Question 22

What is an information barrier?

Answer 22

The physical or electronic separation between individuals to assist with confidentiality.

Question 23

What is Informed Consent?

Answer 23

Informed consent is where the client is made aware and understands the conflict and provides written consent to proceed.

Question 24

When have you acted with integrity

Answer 24

Declined gifts from a contractor at Christmas as it might suggest an improper obligation.

Question 25

How do you handle clients money?

Answer 25

Personally, I have never handled any client’s money. However, if I did I would refer to the RICS guidance note Client Money Handling, 1st edition to ensure that I was doing so correctly.

Question 26

How do you deal with a complaint?

Answer 26

I follow Bailey Partnerships complaints procedure;

Where a written complaint is received it is to be passed onto the relevant person. In my case, this is one of the Partners.
If a complaint is made orally, request the complaint in writing.
Once the complaint is received we have 7 days to provide a written summary typically containing our understanding of the circumstances leading to the complaint and an invitation to provide a response.
Within 21 days of the complaint they will be informed of the investigation into the complaint and to let them know what actions have been or will be taken.
If they are not happy with the response they are invited to contact our Relevant persons or The Regulatory Board; namely, Arbitrators drawn from the RIBA, RICS or CIArb.

Question 27

How do you register to become an RICS regulated firm?

Answer 27

A form is available on the RICS website. Several preconditions must be met;

1. Your firm must offer professional services in surveying disciplines
2. At least 25% of principals must be charted with the RICS
3. Agree to comply with RICS Rules of Conduct for Firms

Question 28

How does the RICS maintain a high standard?

Answer 28

CPD, disciplinary boards, RICS publications (now professional standards and practice information)

Question 29

What is Meritt vs Babb?

Answer 29

A court case; Babb undertook a valuation of Meritt’s property. The survey was found to be negligent. The company Babb worked for no longer existed when the claim was made and Babb was held personally liable. This case highlights the importance of run off cover.

Question 30

What is the RICS motto

Answer 30

“est modus in rebus” or “There is measure in all things”.

Question 31

What are the rules of conduct 2021?

Answer 31

The 5 rules are;

Members and firms must act in the public interest
Members and firms must treat others with respect
Members and firms must provide good quality and diligent service.
Members and firms must maintain their professional competence
Members and firms must be honest, act with integrity

Question 32

What is the purpose of the rules of conduct

Answer 32

The Rules of Conduct apply to all members and firms worldwide. The Rules of Conduct are designed to effect positive change in the built and natural environments, through promoting and enforcing the highest ethical standards in the development and management of land, real estate, construction and infrastructure.

Question 33

How do you ensure you are behaving ethically?

Answer 33

Typically I am certain most day-to-day activities are ethical. However, if I am unsure I refer to the RICS ethics decision tree.

This is a flow chart that gets you to ask yourself a series of questions to establish if you are behaving ethically i.e. Do you have the competence to adequately undertake the work? is it legal? Does it comply with the RICS global ethical standards?

Question 34

What are some RICS guidance notes relating to ethics

Answer 34

Conflicts of interest 1st edition 2017
Client money handling 1st edition 2019
Countering bribery and corruption, money laundering and terrorist financing 1st edition 2019
Rules for member and firms 2021

Question 35

Why does the RICS have Rules of conduct?

Answer 35

A framework all members work to, to ensure a high standard of service.
A professional guide for members and firms

Question 36

What information do RICS registered firms need to submit to the RICS?

Answer 36

An online form titled an annual return. Failure to complete this sees a fixed penalty on the registered firm. The form includes;

1. Details of the firm’s turnover. 2. The number of complaints received and how they were resolved (CHP)
2. Information on any legal proceedings the firm is involved in.
3. Details of the firm’s professional indemnity insurance.
4. nature of clients
5. type of business and staffing levels
6. training provisions

Submitting the annual return is crucial for RICS Regulated firms to demonstrate their compliance with regulations and maintain their status as regulated entities. It helps ensure transparency and accountability within the industry.

Question 37

What would you do in the event a friend ask you for advise on a building pathology issue.

Answer 37

Advise that I do not have the appropriate insurance in place and recommend that they either contact my company or recommend browsing find a surveyor on the RICS website.

Question 38

What basis is a PI claim and what does it mean

Answer 38

On a claims-made basis meaning the claim is made against the insurance policy that is in place when the breach is discovered not what was in place at the time of the breach.

Question 39

What measures would you take to avoid claims on PII

Answer 39

Good record keeping.
Follow RICS guidance.
Do not advise on areas outside my expertise.

Question 40

When have you maintained your professional competence and ensured that services are provided by competent individuals who have the necessary expertise?

Answer 40

All my work is checked and approved by my line manager and/or project lead. I regularly undertake CPD to improve my soft skills and technical skills. I keep up to date with new RICS guidance notes relevant to my area of work.

Question 41

When have you provided good-quality and diligent service?

Answer 41

Know what I don’t know, All my work is checked and approved by my line manager and/or project lead, I consistently keep proper records of correspondence and decisions for quality assurance or regulatory purposes.

Question 42

When have you respected and encouraged diversity and inclusion?

Answer 42

We undertake regular HR Policy Training providing an update on Modern Slavery, Equality, Diversity, Data Protection and Safeguarding & Whistleblowing I have identified and addressed personal unconscious bias