Ethics, Rules of Conduct, and Professionalism Flashcards
Which firms are regulated by RICS?
Those firms with 50% or more of their partners/directors that are members of RICS.
What is required to start your own firm?
Professional Indemnity Insurance
Business Continuation Plan
Registration of the Firm with the RICS
Complaints Handling Procedure
Client Money Handling Procedure
What is required to close a practice?
Inform the RICS
Inform clients and arrange their hand over
Return any client money
Set-up professional indemnity run-off cover
Retain copies of client files.
What are the CPD requirements?
20 hours per year, of which at least 50% must be formal.
What is required for a Complaints Handling Procedure?
The complainant must be able to submit their complaint in writing.
Complaints must be acknowledged within 7 days and responded to in full in 28 days, either with a resolution or requesting further time.
The company must inform their PI insurers of any complaint received.
What are the RICS requirements for a firms’ PI policy?
The cover must be adequate for the business.
What are the five rules of conduct?
Rule 1: Members and firms must be honest, act with integrity and comply with their
professional obligations, including obligations to RICS.
Rule 2: Members and firms must maintain their professional competence and ensure
that services are provided by competent individuals who have the necessary
expertise.
Rule 3: Members and firms must provide good-quality and diligent service.
Rule 4: Members and firms must treat others with respect and encourage diversity and
inclusion.
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.
What is the significance of the Royal Charter?
The charter is a measure of prestige for the institution, which places a responsibility on the RICS to promote the usefulness of the profession for the public good in the UK and abroad.
What is bribery?
The giving of a financial or other advantage to encourage the recipient to perform their functions or activities improperly or to reward that person for having already done so.
What is the the policy on gifts and hospitality?
Anyone receiving a gift or hospitality should calculate the value of the gift/hospitality on a per person basis. Depending on the value and the source, the employee may either proceed with care, report the gift or apply for pre-authorisation.
The value thresholds are as below;
Public Sector (Always Pre-Authorise): Gifts at £15 and Entertainment at £30
Private Sector (Report): Gifts at £60 and Entertainment at £120
Private Sector (Pre-Authorise): Anything over £500
In addition pre-authorisation is required for overnight stays and costs of travel must be borne by recipients. Pre-authorisation is also required where a spouse is invited and the spouse’s costs must be born by the recipient.
Facilitation payments or cash/cash equivalents are not permitted.
What is a conflict of interest?
A conflict of interest arises where someone’s actions could be seen to be affected in a way that their impartiality may be questioned.
What is a party conflict?
A party conflict arises where the duty to act in the best interests of one client, conflicts with a duty owed to another client.
What is an own interest conflict?
A sistuation where by the duty to act in the interests of a client conflicts with the interests of the member or firm.
What is a confidential information conflict?
A conflict between the duty to provide material information to one client with the duty to another client to keep that same information confidential.
How can one check for conflict of interest?
When setting up a new instruction, our system automatically flags instructions undertaken with similar/the same client and in the geographical vicinity.
These instructions are reviewed by the secretary and by the instruction handler to confirm no conflict of interest is present, and the conclusion is recorded.
