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APC > Ethics, rules of conduct and professionalism - L1 > Flashcards

Ethics, rules of conduct and professionalism - L1 Flashcards

1
Q

Why do you want to become a member of RICS?

A

Land and Resources summer podcast - holistic approach and working across barriers in the sector

Becoming a member of RICS gives my clients, current employer and future employers and myself too that I am competent to be a surveyor.

Gives me access to a range of resources and network of surveyors and professionals.

The recognition of the sector

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2
Q

What are the key functions of RICS?

A
  1. Setting standards for the surveying profession
  2. regulating members and firms
  3. offering professional development and services
  4. representing the sector
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3
Q

What is a Royal Charter?

A

A Royal Charter is a formal document issued by the monarch granting a specific organization certain rights or powers. It confers legal status and recognition to institutions like RICS, affirming their authority and role.

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4
Q

Who is the current RICS president?

A

Tina Paillett
she’s got a drive for the sustainability sector and co founder of a platform working in the circular economy and decarbonisation sector.

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5
Q

What do you understand by the term self-regulation?

A

Gives the profession the ability to self-regulate it’s own members through establishment of standards and practices, ensuring compliance with ethical conduct without direct government intervention

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6
Q

Can you tell me what you understand by the principles of better regulation?

A

involves ensuring that regulations are effective, efficient, transparent and fair

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7
Q

What is a bye-law?

A

A Bye-Law is a regulation or rule established by an organization, such as RICS, to manage internal procedures and member behavior.

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8
Q

Give an example of one of the RICS Bye-Laws.

A

One example is Bye-Law 5: Conduct, which outlines the requirements for members to abide by the RICS Code of Conduct.
Bye law 6 - disciplinary powers - fines and suspension from RICS

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9
Q

Explain the new RICS Rules of Conduct - what do they replace?

A

There are 5 rules of conduct
1. Honesty and integrity
2. professional competence
3. good quality and diligent service
4. respect and encourage diversity
5. in the public interest

Replaced Rules of Conduct for Members, Firms and Global Professional and ethical standards

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10
Q

When did the new Rules of Conduct come into effect?

A

Feb 2nd 2022

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11
Q

Who does the Rules of Conduct relate to?

A

All members and firms

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12
Q

What are the ethical principles the Rules of Conduct are based off?

A

Integrity
Honesty
Competence
Service
Respect
Responsibility

CHRIS R

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13
Q

What are the core professional obligations of firms and members to RICS

A

provide good quality and diligent service, know when and when not to act for your client, have due regard to your clients interest, as well as the public interest

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14
Q

What disciplinary procedures can RICS impose?

A

RICS can impose sanctions such as fines, suspension, or expulsion from membership.

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15
Q

In what circumstances can sanctions be imposed?

A

Disciplinary actions are imposed for breaches of RICS rules, unethical behavior, or failure to maintain professional standards.

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16
Q

When did RICS last update their disciplinary panel rules?

A
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17
Q

What do you understand by the term professional practice?

A

Professional practice refers to the conduct and methods employed by a professional in delivering their services, adhering to industry standards and ethical guidelines.

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18
Q

What money laundering regulations or legislation are you aware of?

A

Money Laundering and Terrorist Financing Regulations 2022
Proceeds of Crime Act 2000

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19
Q

What is a red flag of money laundering?

A

Red flags include large, unexplained cash transactions, inconsistent information provided by clients, and unusually high-value transactions.

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20
Q

What bribery legislation are you aware of?

A

Bribery Act 2010 - key legislation in the UK

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21
Q

What is a bribe?

A

A bribe is a financial or other incentive given to influence someone’s actions or decisions in their professional capacity.

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22
Q

What are the penalties for accepting a bribe?

A

Penalties for accepting a bribe can include imprisonment, fines, and disqualification from holding certain positions.

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23
Q

What are the penalties for being involved in money laundering?

A

Penalties for involvement in money laundering include imprisonment, substantial fines, and confiscation of assets.

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24
Q

What constitutes an offence under the Bribery Act 2010?

A

Offering, promising, or giving a bribe and requesting, agreeing to receive or accept a bribe

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25
Q

What constitutes an offence under the current money laundering regulations?

A

Offences include failing to report suspicious transactions, aiding or abetting money laundering, and knowingly participating in money laundering activities.

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26
Q

How long should you keep anti-money laundering records for?

A

Anti-money laundering records should be kept for at least five years.

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27
Q

What is Professional Indemnity Insurance (PII)?

A

Professional Indemnity Insurance provides coverage against claims of negligence or errors in professional services.

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28
Q

Can you tell me about the RICS requirements in relation to PII?

A

RICS requires PII to meet the following eight minimum requirements
1. cover for any one claim
2. Fully retroactive
3. include rics minimum policy wording
4. written on full civil liability basis
5. minimum level of indemnity based on the firms turnover
6. maximum level of uninsured excess
7.underwritten by RICS approved insurer
8. provide cover for past and previous employees

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29
Q

What does ‘claims made’ mean in terms of PII?

A

‘Claims made’ means that the policy provides coverage for claims made during the policy period, regardless of when the incident occurred.

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30
Q

In a negligence claim, what would help to show that you acted with consideration and due process?

A

Providing detailed and accurate documentation, following established procedures, and maintaining clear communication with clients help demonstrate due consideration and process.

31
Q

Can good record keeping help to provide a defence in a PII claim?

A

Yes, good record keeping can provide crucial evidence to support your defense in a PII claim, showing that you acted professionally and followed proper procedures.

32
Q

f you were providing services outside of your usual scope to a client, what might you need to do in relation to your PII cover?

A

You may need to review and possibly update your PII coverage to ensure it includes the additional scope of services being provided.

33
Q

What is run off cover?

A

When a RICS Firm or Member stops trading they must have a minumum of £1,000,000 of run off PII for a minimum of 6 years for consumer claims

34
Q

Would a dictated report avoid the need to have any written site notes?

A

No, a dictated report does not replace the need for written site notes

35
Q

What is the Assigned Risks Pool (ARP)?

A

The Assigned Risks Pool (ARP) is a mechanism designed to provide Professional Indemnity Insurance (PII) coverage for firms that are unable to obtain insurance in the open market due to high risk or other factors.

36
Q

Explain your understanding of the RICS Professional Standard Risk, Liability and Insurance (1st Edition).

A

outlines the requirements for risk management, liability cover and the insurance which RICS member and firms must follow and set standards for professional conduct and insurance protection.

37
Q

Explain when you might agree to a liability cap.

A

A liability cap might be agreed upon in situations where the client and professional want to limit the maximum financial exposure for the professional’s liability, often negotiated as part of the terms of engagement to manage risk.

37
Q

Who might need to access the ARP?

A

Firms that struggle to secure PII from standard insurers due to their risk profile, or those newly established without a prior insurance record, may need to access the ARP.

38
Q

How would you set out third party reliance in Terms of Engagement?

A

Make sure that it is referenced where third party advice or reports is not authorised.

39
Q

What are the three key terms that should be considered from a risk perspective in the context of every instruction you undertake?

A
  1. Scope of work
  2. liability limitations
  3. insurance coverage
40
Q

What is an annual return?

A

An annual return is a report that firms or individuals are required to submit annually to regulatory bodies, detailing their business activities, compliance status, and financial health.

41
Q

Tell me what you understand about Complaints Handling Procedures (CHP). When and how can the RICS be involved in a complaint about a firm or member?

A

RICS can be involved in a compliant should a member of the public come to rics with a compliant.

The procedures outline how firms must operate a CHP and have a nominated officer and approved mechanism to handle compliants.

Clients must be aware of the CHP in the terms of engagement.

42
Q

Can you tell me about the CPD requirements for members of RICS?

A

Members must complete 20 hours of cpd each year submitted by 31st january

43
Q

Why is CPD important?

A

CPD is important because it ensures that professionals remain knowledgeable about current practices, regulatory changes, and emerging trends, which helps maintain high standards of service and competence.

44
Q

Tell me about the RICS’ guidance on dealing with Conflicts of Interest.

A

Clear rules for members and firms to identify and manage potential conflict of interest.

About identifying what type of conflict it is and whether it can be managed effectively to allow the surveyor/firm to act for their client.

45
Q

What is double dipping (dual agency)?

A

Double dipping, or dual agency, occurs when a professional represents both the buyer and seller in a transaction, which can create a conflict of interest.

46
Q

Why is double dipping (dual agency) an unacceptable practice?

A

Double dipping is unacceptable because it compromises impartiality and can lead to conflicts of interest, as the professional may struggle to fairly represent both parties’ interests.

47
Q

How would you close down a regulated firm?

A
  1. Notify the relevant regulatory body
  2. settle all outstanding obligations and liabilities
  3. complete necessary paperwork for deregistration or dissolution
  4. ensure proper handling or remaining client funds and records.
48
Q

Who is a ‘qualified member’ of RICS?

A

Qualified member is someone who has passed either the APC or Assoc RICS assessment and continue to meet the cpd requirements.

49
Q

What is a phoenix firm?

A

A phoenix firm is a business that is set up after the closure of a previous firm, often by the same owners, to avoid debts or legal issues associated with the old firm.

50
Q

When must a firm register for regulation?

A

RICS Regulation - Rules for the registration of firms

a) providing ‘surveying services to the public’
b) operating in Regulated Area A - UK
c) at least 50% of the firms principals are RICS members

51
Q

What are the registration eligibility criteria?

A

a) firm provides surveying services to the public
b) at least 25% of firms principles are RICS members

52
Q

Who is a Responsible Principal?

A

a Firm that is registered must always have a Responsible Principal - shall take all reasonable steps to ensure that the firm complies with its regulatory and statutory obligations.

53
Q

What are the rules around use of the RICS logo and ‘Regulated by RICS’ designation?

A

Regulation document on this - may only be used by a member of registered firm unless otherwise authorised by RICS. 7 requirements outlined in the regulation guidance document

54
Q

Tell me about the restrictions to the use of the designation ‘Chartered Surveyors’ by firms.

A

Once a firm is regulated by RICS they can use the RICS logo and designation ‘Chartered Surveyors’

55
Q

What must be included in ToE relating to firm regulation?

A

Terms of Engagement (ToE) must include details of the firm’s regulatory status, scope of services, responsibilities, and how compliance with RICS standards will be ensured.

56
Q

What is a locum and who might need one?

A

Locum is temporary replacement for a professional e.g on death, incapacity to act, extended absense.

‘stand in’

are usually another chartered surveyor but could be a solicitor or accountant (trusted professional).

Needs to be appointed formally in writing and outline the various matters the locum can be involved in.

57
Q

How could a sole trader set up their CHP using a locum?

A

A sole trader could set up their Complaints Handling Procedures (CHP) by employing a locum to handle complaints during their absence, ensuring continuity and adherence to regulatory requirements.

58
Q

What RICS guidance relates to handling client money?

A

Client Money Handlings 1st edition October 2022

59
Q

What do the RICS Rules of Conduct say about client money?

A

Rule 1 references client money that firms must keep client money safe and have appropriate accounting controls.

60
Q

Explain your understanding of the RICS Scheme Rules relating to client money protection.

A

The RICS Scheme Rules provide a framework for protecting client money, including requirements for maintaining separate client accounts, regular audits, and establishing procedures for handling and reporting client funds.

61
Q

What is client money?

A

defined as any cash, cheque, draft or electronic transfer which a RICS regulated firm hold for or receives on behalf of another person and is not immediately due and payable on demand e.g rent, service charge

62
Q

What does client money exclude?

A

fees paid in advance for professional work agreed to be performed and identifiable as such.

63
Q

What is office money and what does it include?

A

could include fees, disturbances, and interest on general client accounts (where clients agree will not accure to them)

64
Q

Explain the key themes from the RICS Futures 2020 Report.

A

Overriding three themes include;
data and technology
talent and skill
sustainability

65
Q

Explain the potential implications of the Hart v Large case.

A

Dispute between purchaser and their surveyor (Large)

Instructed to provide L2 HomeBuyer Survey

Large reported minor issues to drainage, guttering and pipework, valued property at £1.2m

After purchase Harts suffered water ingress - put in negligence claim against Large.

High Court held Mr Large was negligent because report failed to report on damp.

When to appeal but Court of Appeal held that Mr Large should bear the consequences of advice not being given.

66
Q

Explain your understanding of precedent set in Burgess v Lejonvarn.

A

Burgess v Lejonvarn established precedent regarding the duty of care owed by professionals to clients, emphasizing the importance of fulfilling professional obligations and managing client expectations.

L was a architect and not paid for services to B who was a friend. B alleged L’s services were negligent and brought a claim against L. Court decided no contract between the parties but that L did have a duty of care to use reasonable skill and care in providing the services they did. L could therefore be liable in negligence even though did not recieve payment.

67
Q

What do RICS set out as good practice for the use of social media in their Regulation document (June 2021)?

A

RICS’s June 2021 Regulation document advises professionals to use social media responsibly, maintain professionalism, avoid disclosing confidential information, and ensure that online communications comply with RICS standards.

68
Q

Explain your understanding of the RICS Levitt review.

A

Independent review commissioned by RICS to investigate articles in the press that alleged RICS tried to suppress a critical internal report into it’s finances in 2018/2019 and then unfairly dealt with.

69
Q

What is whistleblowing?

A

Whistleblowing involves reporting unethical, illegal, or improper conduct within an organization, typically by an employee or insider, to appropriate authorities.

70
Q

What does good governance mean to you?

A

Good governance means managing an organization with integrity, transparency, accountability, and effectiveness, ensuring that decisions are made in the best interests of stakeholders and adhering to ethical standards.

71
Q

Explain what the Pandora Papers are and the ethical issues raised within them.

A

The Pandora Papers are a leak of documents revealing the use of offshore tax havens by politicians, celebrities, and business leaders. The ethical issues include tax evasion, money laundering, and lack of transparency.

72
Q

What are the RICS minimum levels of PII based on turn over?

A

£100,000 or less = £250,000
£100,001 to £200,000 = £500,000
£200,001 and above £1,000,000

APC (33 decks)

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