Ethics, Rules of conduct and professionalism

Question 1

How does the RICS ensure standards of professional conduct and practice are upheld?

Answer 1

-RICS has Rules of Conduct ( Effective Feb 2022)
-The Rules of conduct apply to all members and firms regulated by RICS,
-The Rule of Conduct are based on ethical principles of Honesty, Integrity, competence, service, respect and responsibility.

Question 2

List the Rules of Conduct

Answer 2

1. Members and firms must be honest, act with integrity and comply with their professional obligations, including obligations to RICS.
2. Members and firms must maintain their professional competence and ensure that services are provided by competent individuals who have the necessary expertise.
3. Members and firms must provide good-quality and diligent service.
4. Members and firms must treat others with respect and encourage diversity and inclusion.
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.

Question 3

Can you provide example behaviors which comply with Rule 1

Answer 3

Members and firms do not mislead others by their actions.
members and firms have effective processes to identify actual and potential conflicts of interest.
Members and firms are open and transparent with Clients about fees and services.
Members and firms do not take unfair advantages of others.
Members and firms do not facilitate any financial crime including money laundering, tax evasion, bribery or corruption.

Question 4

Can you provide 5 example behaviours to comply with Rule 2? (Members and firms must maintain their
professional competence and ensure that services are provided by competent individuals who have the
necessary expertise).

Answer 4

Members and firms only undertake work that they have the knowledge, skills and resources to carry out competently.

Members and firms supervise any employees undertaking work for them and ensure that these employees have the necessary knowledge, skills and resources to do their tasks competently.

Members and firms reflect on the work they have undertaken and its impacts, and consider how they might apply what they have learned to their future work.

Members maintain and develop their knowledge and skills throughout their careers. They identify development needs, plan and undertake continuing professional development (CPD) activities to address them and are able to demonstrate they have done so.

Members and firms stay up to date and comply with relevant legislation, codes of practice and other professional and relevant technical standards. Firms ensure that their directors, partners and employees do so.

Question 5

Can you provide 5 example behaviors to comply with Rule 3? (Members and firms must provide good-quality and diligent service).

Answer 5

Members and firms understand clients’ needs and objectives before accepting any professional

Members and firms agree with clients the scope of the service to be provided and its limitations timescales for the work.

Members and firms communicate with clients and others clearly and in a way they can understand

Members and firms understand the risks and benefits of using relevant technology.
Firms have effective quality assurance processes for their work.

Question 6

Can you provide 5 example behaviors to comply with Rule 4? (Members and firms must treat others with respect and encourage diversity and inclusion).

Answer 6

Members and firms respect the rights of others and treat others with courtesy.

Members and firms do not bully, victimise or harass anyone.

Firms check that supply chains do not involve modern slavery or other abuses of the workforce.

Members and firms work cooperatively with others.

Members and firms develop an inclusive culture in their workplaces, support equal access and opportunity for all, and identify and address unconscious bias.

Question 7

Can you provide 5 example behaviors to comply with 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).

Answer 7

Members and firms support directors, partners, employees, colleagues or clients who have acted in good faith to report concerns.

Members and firms respond to complaints made against them promptly, openly and professionally.

Members and firms do not dissuade complainants from approaching an alternative dispute resolution provider, RICS or any other regulatory body.

Members and firms manage their professional finances responsibly.

Members and firms take appropriate action when they consider that the rules have been breached, and report suspected significant breaches of the Rules of Conduct by themselves or others to RICS.

Question 8

Please can you list the core professional obligations for members detailed in Rules of Conduct - Appendix A.

Answer 8

The following professional obligations to RICS are mandatory for RICS members:
-Members must comply with the CPD requirements set by RICS.
-Members must cooperate with RICS.
-Members must promptly provide all information reasonably requested by the Standards and Regulation Board, or those exercising delegated authority on its behalf.

Question 9

Please can you list the core professional obligations for firms detailed in Rules of
Conduct - Appendix A.

Answer 9

-Firms must publish a complaints-handling procedure, which includes an alternative dispute resolution provider approved by RICS, and maintain a complaints log.
-Firms must ensure that all previous and current professional work is covered by adequate and appropriate professional indemnity cover that meets the standards approved by RICS.
-Firms with a sole principal must make appropriate arrangements for their professional work to continue in the event of their incapacity, death, absence from or inability to work.
-Firms must cooperate with RICS.
-Firms must promptly provide all information reasonably requested by the Standards and Regulation Board, or those exercising delegated authority on its behalf.
-Firms must display on their business literature, in accordance with RICS’ published policy on designations, a designation to denote that they are regulated by RICS.
-Firms must report to RICS any matter that they are required to report under the Rules for the Registration of Firms.

Question 10

Are you aware of RICS regulation regarding the use of social media accounts?

Answer 10

-Use of social media, Guidance for RICS Members, Version 1 - Effective 30/06/2021
-Standards expected of members do not change because they are communicating through social media rather than face-to-face or other traditional media.

Question 11

You attend a work social event and witness two junior colleagues acting in a way which could bring your firm into disgrace. What would you do in this situation?

Answer 11

I would speak with them immediately and take steps prevent reputation damage or embarrassment of my colleagues. I would then address their actions formally in working hours.

Question 12

RICS professional standards - What are the various standards and what is their status?

Answer 12

Professional statements - These contain “musts” - mandatory requirements, along with details of regulatory interventions if these requirements are not met.

Guidance notes - These contain “Shoulds” - Non mandatory requirements, but recommendations of best practice on undertaking given tasks.

Assessment of professional competence (APC) - These are the requirements and guidelines relating to entry into the profession.

Data Standards - These ensure software programmes and technology can adopt RICS standards into their offering.

Question 13

Why does RICS publish guidance notes and do chartered surveyors have to follow them?

Answer 13

-Guidance notes outline best practice within the profession and provide advice to surveyors on how to complete certain activities
-They should be followed; members should remain up to date to ensure they are competent. If there is ever a professional negligence claim and a member has not followed a guidance note, the courts or adjudicator my review these to determine whether the members has acted competently.

Question 14

What is the ‘Black Book’?

Answer 14

The black book is a suite of guidance notes that define good technical standards for quantity surveying and construction professionals.

Question 15

Are you aware of any regulation in association with the use of the RICS logo by regulated firms and Chartered professionals?

Answer 15

-Rules for the use of the RICS logo and designation by firms.
-Guidelines for the personal use of the RICS logo and designations by RICS professionals.

Question 16

Can you explain how you act with integrity?

Answer 16

-Being trustworthy in all that I do
-Being open and transparent in the way I work
-Respecting confidential information
-Not taking advantage
-Not allowing bias, conflict of interest or the undue influence of others to override my decisions
-Not offering or accepting gifts, hospitality, or services which might suggest an improper obligation.

Question 17

Why must you act within our professional capabilities/competence

Answer 17

To ensure i do not advice my Clients incorrectly which could lead to a complaint or claim of negligence.

Question 18

Can you explain how you take responsibility

Answer 18

-Be accountable for my actions
-Always act with skill, care and diligence
-Ensure an appropriate complain handling procedure is in place in the event somebody makes a complaint about me
-If i think something is not right, I am prepared to respectfully challenge and raise the matter with colleagues

Question 19

Can you explain how you treat others with respect

Answer 19

-I treat everyone with courtesy and politeness
-I am always polite and considerate to Clients, potential Clients and everyone else
-I never discriminate against anyone for any reason

Question 20

Can you explain how you provide a high standard of service

Answer 20

-I always ensure my client, or others to whom I have a professional responsibility, receive the best possible advice and support.
-Acting within my scope of competence.
-Being transparent about fees and any other costs or payments such as referral fees or commissions.
-Communicating with my client in a way that will allow them to make informed decisions.

Question 21

Can you explain how you promote trust in the profession?

Answer 21

-Understanding how my actions will affect others and the environment.
-Fulfilling my professional obligations.
-Acting in a trustworthy manner in both my professional and private life.

Question 22

Can you clarify what an individual should do to maintain a high ethical standard in their profession?

Answer 22

-Keep their own actions under review, inside and outside of work.
-Maintain CPD appropriate in their area of work (for example, applicable law and regulations).
-Follow advice given by professional bodies on ethical behaviour.
-Help their own organisation to develop ethical ways of working.
-Noting any unethical behaviour by others and addressing with the individual where appropriate.

Question 23

What can employers do to create an ethical environment?

Answer 23

-Establish confidential procedures for ‘whistle blowing’, independent of the normal chain of command.
-Include ethical evaluations in formal performance appraisals.
-Include ethical standards in employee hiring, employment contracts and training.
-Make sure there is adequate planning, training and ethical performance monitoring when implementing change.
-Encouraging staff to progress their APC and become chartered with RICS.
Promoting CPD in the relevant area.

Question 24

What is the difference between ethics and integrity?

Answer 24

-Ethics are moral principles that govern a person’s behaviour or the conducting of an activity.
-Integrity is the quality of being honest and having strong moral principles and values.
-Put simply, ethics looks at the big moral picture while integrity is focused on personal characteristics.

Question 25

What tools produced by RICS are available to help members make ethical decisions?

Answer 25

RICS ethics decision tree. - Directs if you should or not proceed with something which you know may not be ethical but are uncertain. using factors such as having the full facts - is it legal - is it in line with the Rules of conduct - have you consulted the appropriate people to make a informed decision - clear reasoning - Would you be happy for your actions to be made public

Question 26

Are you aware of any rules associated with registering a firm with the RICS

Answer 26

Rules for the registration of firms - Version 8 with effect from 2 Feb 2022

Question 27

When is a firm required to register for regulation

Answer 27

1) The firm provides surveying services to the public
2) The firm is operating in regulated area A (UK)
3) At least 50% of the firms principals are RICS members

Question 28

In which circumstances are firms eligible to register for regulation

Answer 28

Rule 4.1 - A firm is eligible to register for regulation by the RICS if:
a) The Firm provides surveying services to the public and
b) At least 25% of the Firm’s Principals are RICS Members.

Rule 4.2 - A Firm is also eligible to register for regulation by RICS if it meets the requirements of Rules4.1(a); and either:
a) The Head of Regulation is satisfied that the Firm is implementing an appropriate plan to secure compliance with Rule 4.1 (b) within a reasonable period of time or;
b) The Head of Regulation is satisfied that the Firm is appropriately supported and
supervised by another RICS-registered Firm or Firms that fulfil the requirements

Question 29

What is a locum

Answer 29

-A firm which has a sole principal must have in place appropriate arrangements in the event of that sole principals death or incapacity or other extended absences

Question 30

who can be a locum

Answer 30

Typically, a locum will be another chartered surveyor, although they could also be a solicitor or accountant by trade for example

Question 31

How does PII cover relate to locums

Answer 31

Locums need to be covered for any work undertaken whilst a sole practitioner is unavailable. This could either be under their own cover, if appropriate, or under the firms PII policy

Question 32

What are the CPD requirements for Chartered surveyors

Answer 32

Members must undertake a minimum of 20 hours of CPD each calendar year
of the 20 hours at least 10 hours must be formal CPD, the remainder can be informal CPD.
-Members must maintain a relevant and current understanding of RICS professional and ethical standards during a rolling three-year period, any learning undertaken in order meet this requirements may count as formal CPD.
Members must record their CPD activity online by 31st Jan every year

Question 33

What is the difference between formal and informal CPD

Answer 33

Formal - Structured learning that has clear objectives and outcomes - such as: Professional training course and learning that includes an assessment measures
Informal - Self-managed learning that is relevant or related to your profession
such as - Private study and Attendance to informal seminars or events

Question 34

How is CPD recorded once a surveyor is qualified MRICS

Answer 34

CPD can be recorded on RICS website or by the app

Question 35

What sort of professional development have you done during your training period

Answer 35

In-house training courses.
External training courses.
Personal reading of relevant articles.
Mock final assessment interviews.
Seminars and lectures.

Question 36

How will you go about selecting CPD subject over the next 12 months

Answer 36

Consider weak and limited areas of my knowledge to develop.
Consider ‘hot topics’ that may be relevant for the next 1 2-1 8 months.
Consider future projects and/or project requirements.
I will target my CPD to develop knowledge in these areas.

Question 37

How do you keep up to date on topical issues

Answer 37

Regularly review RICS’ website and journals.
Register to mailing lists with key CPD providers.
Discussions with colleagues.
I regularly read construction related news.
I keep in touch with my employer’s research & development team.

Question 38

Are there any tools to determine if CPD is formal or informal

Answer 38

RICS CPD Decision Tree

Question 39

Can you accept a gift from a Client or Contractor?

Answer 39

-I would not accept gifts, hospitality, or services, which might suggest an improper obligation.
-Gifts and hospitality can be accepted in certain circumstances, the key is to consult the ethics decision tree and make an informed decision.

Key points to note:
-Timing of the gift or hospitality.
-Proportionality of the gift or hospitality.
-Consideration to the impartiality, or perceived impartiality of the gift or hospitality offered.

Question 40

What things would you consider when assessing if a gift or hospitality is appropriate to accept?

Answer 40

-What is the value of the gift or hospitality?
-Is the gift or hospitality offered at an appropriate time? (Is the offer presented just before tender award for example).
-Is it proportionate to the working relationship?
-Will the gift effect my ability to act impartially? Is it proportionate to gifts being offered to others?
-Who is the gift or hospitality being given to? (Is it just one person or a range of people from different organisations).
-Is it in line with RICS Rules of Conduct and professional standards?

Question 41

Conflict of interest

Answer 41

A Conflict of Interest arises in a situation where there may be an actual, perceived or potential risk that the professional judgement of an RICS-regulated firm or member will be compromised when undertaking an assignment.

Question 42

Has RICS published any information on Conflicts of Interest?

Answer 42

Conflicts of Interest, 1 st edition, March 2017.

Question 43

Is the Conflicts of Interest, 1 st edition, March 2017 a guidance note or professional statement?

Answer 43

Professional Statement

Question 44

Can you name 3 types of conflict outlined in the 2017 professional statement? with detail

Answer 44

Party Conflict:
A situation in which the duty of an RICS member or regulated firm, acts in the interests of a client or other party in a professional assignment which 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 of an RICS member or regulated firm, acts in the interests of a client in a professional assignment which conflicts with the interests of the same RICS member/firm.
Confidential Information Conflict:
A conflict between the duty of an RICS member or regulated firm, to provide material information to one client and the duty of that RICS member/firm to another client to keep that same information confidential.

Question 45

Can you name 3 types of conflict outlined in the 2017 professional statement?

Answer 45

1)Party Conflict
2)Own Interest Conflict
3)Confidential Information Conflict

Question 46

Can you provide working examples of a conflict, or potential Conflict of Interest?

Answer 46

-Acting for both the developer and contractor on the same project.
-Having other obligations or pressures that detract you from or affect your relationship with the client (e.g. acting as an expert witness where you/your firm has an interest in the outcome of the proceedings).

Question 47

What is Informed Consent?

Answer 47

Informed Consent occurs when a party who might be adversely affected by a Conflict of Interest acknowledges the existence of that risk but still agrees to instruct an RICS-regulated firm or RICS member to proceed with the assignment.

Question 48

What action should you take if a Conflict of Interest situation (or potential situation) arises?

Answer 48

As soon as you become aware, disclose to the client in writing and detail the nature of the conflict.

Question 49

You are instructed to work on a proposed development which would require the removal of a nature reserve. You have very strong views on protecting the environment. What should you do?

Answer 49

-Ask myself the question could I work on the project without bias or Conflict of Interest?
-Notify the client in writing of the potential Conflict of Interest.
-I may need to respectfully decline the commission and offer up somebody else in the business who could work on the commission without bias or Conflict of Interest.

Question 50

What is a bribe?

Answer 50

An inducement or reward offered, promised, or provided to gain any commercial, contractual, regulatory, or personal advantage.

Question 51

What is the Bribery Act 2010?

Answer 51

The Bribery Act 2010 covers criminal law relating to bribery. The Act contains four main bribery offences:

-Bribing another person;
-Being bribed;
-Bribing a foreign public official; and
-Failure by a commercial organisation to prevent bribery.

Question 52

What are the 6 principles of the Bribery Act?

Answer 52

1) Proportionality
2) Top-level commitment
3) Risk Assessment
4) Due Diligence
5) Communication
6) Monitoring and review

Question 53

What is proportionality

Answer 53

The action taken should be proportionate to the risk and size of the organisation.

Question 54

Top-level Commitment

Answer 54

Those in senior positions are best placed to ensure the organisation conducts
business without bribery.

Question 55

Risk assessment
Bribery act

Answer 55

Many organisations will have little or no risk of bribery, but a risk assessment will
show the nature or extent of exposure to bribery.

Question 56

Due diligence

Answer 56

Due diligence procedures must be applied, taking a proportionate and risk-based
approach, with regard to individuals who perform or will perform services on behalf of the organisation.

Question 57

Communication

Answer 57

Employers will need to communicate their policies and procedures to staff and others
who perform services, additional training may help raise awareness (proportionate to the size and type of organisation).

Question 58

Monitoring and review

Answer 58

As an overarching principle, organisations should monitor and review
procedures designed to prevent bribery by persons associated with it and make improvements where necessary.

Question 59

Who does the Bribery Act 2010 apply to?

Answer 59

The Bribery Act will apply to an individual if:

-A British citizen has committed a bribery offence anywhere in the world.
-A British associate with a connection to the UK, such as through business, conducts a bribery offence in or outside of the UK.

The Bribery Act will apply to an organisation if:

-The organisation is incorporated in the UK and has committed a bribery offence anywhere in the world.
-An organisation or partnership that has carried out business in the UK.

Question 60

What is your position for compliance with the Bribery Act?

Answer 60

-My company has an anti-bribery and corruption policy which applies to me as an employee, I strictly follow the procedures in the policy.
-I would report any act of bribery to the Serious Fraud Office or National Crime Agency.

Question 61

What are the potential consequences for not adhering to the Bribery Act?

Answer 61

-There is a maximum penalty of 10 years’ imprisonment and/or an unlimited fine for individuals.
-Corporates face an unlimited fine.

Question 62

What is money laundering?

Answer 62

Money laundering is the generic term used to describe the process by which criminals disguise the original ownership and control of the proceeds of criminal conduct by making such proceeds appear to have derived from a legitimate source.

Question 63

How do you report suspicious money laundering behavior?

Answer 63

If you suspect that money laundering may be taking place, you are legally obligated under the Money Laundering Regulations to submit a SAR (Suspicious Activity Report) to the National Crime Agency.

Question 64

A client asks you to take responsibility for making interim payments to the contractor. The client gives you half a million pounds in cash to make the payments. What would you do in this situation?

Answer 64

-I would not accept cash; I would encourage my client to pay the cash into a bank account (the responsibility then rests with the bank to check the legitimacy of the cash).
-If I had concerns about the source of the money (from illegal activity for example), I would report to the National Crime Agency.

Question 65

What is corruption?

Answer 65

The abuse of entrusted power for private gain.

Question 66

What is a price fixing cartel?

Answer 66

A cartel is a collection of otherwise independent businesses or countries that act together as if they were a single producer and thus can fix prices for the goods they produce and the services they render, without (or reduced) competition.

Question 67

What is terrorist financing?

Answer 67

The solicitation, collection, or provision of funds with the intention to support terrorist acts or organisations.

Question 68

What is a facilitation payment?

Answer 68

A payment made to a public or government official that acts as an incentive for the official to complete some action or process expeditiously, to the benefit of the party making the payment.

Question 69

What is modern slavery

Answer 69

-Modern slavery is the illegal exploitation of people for personal or commercial gain.
-It covers a wide range of abuse and exploitation including sexual exploitation, domestic servitude, forced labour, criminal exploitation and organ harvesting.

Question 70

What is the relevant legislation?
To modern slavery

Answer 70

Modern Slavery Act 2015.

Question 71

Can you give some examples of modern slavery?

Answer 71

-Forced labour - any work or services which people are forced to do against their will under the threat of some form of punishment.
-Debt bondage or bonded labour - the world’s most widespread form of slavery, when people borrow money, they cannot repay and are required to work to pay off the debt.
-Human trafficking - involves transporting, recruiting, or harbouring people for the purpose of exploitation, using violence, threats, or coercion.
-Child slavery - Child slavery occurs when a child’s labour is exploited for someone else’s gain. It can include child trafficking, child soldiers, child marriage and child domestic slavery.
-Forced and early marriage - when someone is married against their will and cannot leave the marriage. Most child marriages can be considered slavery.

Question 72

How would you report modern slavery?

Answer 72

Call the modern slavery helpline or Police.

Question 73

What is professional indemnity insurance?

Answer 73

Professional indemnity insurance (Pll) covers the policyholder for the costs of legal action made against them in respect of financial loss which occurs due to the negligence, error, or omission in professional advice or services provided.

Question 74

Has RICS published any information on PII requirements?

Answer 74

Yes - UK professional indemnity insurance requirements - Version 9 with effect from 1 April 2022.

Question 75

What is the purpose of having professional indemnity insurance?

Answer 75

-Ensures that if the firm faces a claim, it is protected from financial loss that it cannot meet from its own resources.
-Protects the insured member or firm against the consequences of its liability to pay damages to third parties for breaches of professional duty that it commits through its professional activities; and
-Ensures that the firm’s clients do not suffer financial loss, which the firm cannot meet.

Question 76

What is the difference between ‘any one claim’ and ‘aggregate’ policies?

Answer 76

-Any one claim’ and ‘aggregate’ refer to the basis of cover on a professional indemnity policy.
-An ‘any one claim’ policy provides cover up to the full limit for each individual claim made in the period of insurance, whereas an ‘aggregate’ policy provides cover up to the full limit for all claims made in the period of insurance.

Working example:

-Any one claim policy - If two £75,000 claims are made against a £100,000 any one claim policy, the insurer would cover the costs of both claims, as they are both under the £100,000 limit.

-Aggregate policy - If two £75,000 claims are made against a £100,000 aggregate policy, the insurer would only pay up to the £100,000 limit. As the claims total £150,000, the remaining £50,000 would need to be covered by other means.

Question 77

What is a fully retroactive PH policy?

Answer 77

-PH policies work on a ‘claims made’ basis. This means 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.

Question 78

What measures do you take to avoid professional indemnity insurance claims?

Answer 78

-Keep full and detailed records of meetings, conversations etc.
-Record recommendations and advice given.
-Use proper letters of engagement, appointment contracts and follow the scope of service.
-Avoid providing advise on specialisms outside my field of experience/knowledge.
-Follow RICS guidance and professional statements.
-Avoid excessive workloads.
-Follow RICS Rules of Conduct.
-Follow company procedures and policy.

Question 79

Tell me about Merrett v Babb? (Court case in 2001)

Answer 79

-Babb completed a valuation as an employee of a company for a house purchased by Merrett.
-The valuation was later found to be negligent.
-The original company no longer existed and the professional indemnity policy had been cancelled.
-The Court ruled Merrett could pursue the individual (Babb) for losses.

Question 80

What are the minimum limits of indemnity (for regulated firms)?

Answer 80

Firm turnover
£100k or less = £250k
£100k to £200k = £500k
£200k and over = £1m

Question 81

What is the maximum level of uninsured excess (for regulated firms)?

Answer 81

Firms turnover in the preceding year
£10m or less = the greater of 2.5% of the sum insured or £10k
£10m or more = No limit set

Question 82

If you make a mistake, what would your insurance company expect you to do next?

Answer 82

-Notify them at the earliest opportunity.
-Comply with any conditions and procedures set out in the insurance policy.
-Advise the client of the error.
-Assess the level of mistake and take steps for correcting.

Question 83

Assuming you are MRICS, how would you deal with the following situation A friend asks for your help on a private house extension, they ask for technical advice, for free, outside business hours?

Answer 83

-My firm’s professional indemnity insurance would not cover me for private advice; therefore, I would politely decline to provide.
I- would also need to consider a potential Conflict of Interest (giving professional advice to a friend).
-I would suggest my friend contacts the firm I work for in business hours to discuss a formal appointment.

Question 84

What is professional indemnity insurance run-off cover?

Answer 84

‘Run-off is a form of professional indemnity insurance which covers the historic liabilities of a business after it ceases to trade (the policy covers legacy issues).

Question 85

How long should run-off cover be in place?

Answer 85

RICS expect run-off cover to be maintained for a minimum period of six-years from the cessation of the practice.