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Patrick Kelly APC > Ethics, Rules of Conduct and Professionalism > Flashcards

Ethics, Rules of Conduct and Professionalism Flashcards

1
Q

When was the RICS founded?

A

1868

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2
Q

The RICS has a Royal Charter. By whom was this granted, and when?

A
  • Privy Council
  • 1881
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3
Q

What is the motto of the RICS?

A

Est modus in rebus (there is measure in all things)

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4
Q

What is the Privy Council?

A

Formal body of advisors to the sovereign of the United Kingdom

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5
Q

What is the purpose of the RICS Regulations and Bye-Laws

A

To set out the governance of the surveying institution.

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6
Q

What are the current membership levels of the RICS?

A

140,000 (qualified and trainee)

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7
Q

What are the FOUR levels of RICS membership?

A
  1. FRICS
  2. MRICS
  3. AssocRICS
  4. Student/trainee
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8
Q

How do you become a fellow of the RICS?

A

Provide evidence of the FOUR following:

  1. 5 or more years at MRICS
  2. A leadership role
  3. Evidence of professional or technical achievement
  4. Raising the RICS profile or academic achievement
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9
Q

What is the structure of the RICS?

A
  • Governing Council
  • Standards and Regs Board, and Management Board
  • Then 17 specialist groups within advising on different sectors
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10
Q

Who governs the RICS?

A

It’s Royal Charter

Various internal councils and boards

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11
Q

How many members does the Governing Council currently have?

A

Over 20

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12
Q

Role of the members of the Governing Council?

A

To provide management and strategic advice to the RICS.

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13
Q

How many professional boards are there?

A

17

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14
Q

What is the role of the 17 specialist boards?

A

To outline standards of competence, and provide advice to a specific sector within the RICS.

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15
Q

Current Chief Executive Officer of RICS?

A

Justin Young

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16
Q

President of the RICS?

A

Tina Paillett FRICS

  • Tina also chairs the Governing Council
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17
Q

What is the role of the RICS?

A

To promote and enforce the highest professional standards within the built environment.

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18
Q

What are the THREE main roles of the RICS?

A
  1. Maintain standards
  2. Protect customers
  3. Be a leading source of advice
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19
Q

What is the Bichard Review?

A

An independent review on the RICS carried out by Lord Bichard. This was commissioned by the RICS and followed the Levitt review in 2021.

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20
Q

What was the purpose of the Bichard Review?

A
  • Clarify the purpose of the RICS
  • Outline the responsibilities of the RICS
  • Make recommendations for the future governance structure
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21
Q

What are the FIVE future foundations of the RICS identified by Lord Bichard?

A
  • Vision
  • Mission
  • Strategic Goals
  • Values
  • A world class organisation
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22
Q

What are the values outlined in Bichard’s Future Foundations?

A

CIPA

  • Collaborative
  • Inclusive
  • Professional
  • Ambitious
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23
Q

What are the FIVE benefits of being an RICS member?

A
  1. Recognition
  2. Status
  3. Market Advantage
  4. Knowledge
  5. Network
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24
Q

What is stated by the RICS ‘Rules for the regulation of firms’?

A
  • 50% (must be regulated)
  • 25% (can be regulated)
  • Each firm must appoint a Responsible Principal
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25
Q

What defines a Principal?

A
  • Sole Practitioner
  • Director
  • Partner
  • Board Member

must have a vested interest in the firm!

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26
Q

Who will hear disputes relating to regulation?

A

RICS Standards & Regulations Board

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27
Q

What information is required by the RICS for regulation?

A
  • Type of business and staffing details
  • Name of Responsible Principal
  • Statutory Regulated Activities
  • Nature of Clients
  • CHP
  • PII
  • Does the firm hold client money or nah?
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28
Q

When were the new Rules of Conduct published?

A

October 2021

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29
Q

When did the new Rules of Conduct come into play?

A

2nd February 2022

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30
Q

Why were the new rules published?

A

To give a single set of rules, applying to both members and firms. These rules had an increasing focus on climate change and sustainability.

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31
Q

Rule 4

A

The RICS published new material on rule 4 in March 2024.

Increased focus on diversity, sustainability and inclusion.

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32
Q

What is Rule 1 of the 2021 Rules of Conduct?

A

Members and firms must be hones and act with integrity. They must adhere to their professional obligations, including those imposed by the RICS.

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33
Q

What is Rule 2 of the 2021 Rules of Conduct?

A

Members and firms must maintain their professional competence and ensure that services are provided by individuals with sufficient expertise.

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34
Q

What is Rule 3 of the 2021 Rules of Conduct?

A

Members and firms must provide a good quality and diligent service.

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35
Q

What is Rule 4 of the 2021 Rules of Conduct?

A

Members and firms must treat others with respect, and encourage inclusion and diversity.

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36
Q

What is Rule 5 of the 2021 Rules of Conduct?

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.

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37
Q

What are the professional obligations of RICS members?

A
  • comply with CPD requirements.
  • cooperate with the RICS.
  • provide all information reasonably requested by the Standards and Regulations Board.
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38
Q

What are the “professional obligations” of RICS regulated firms?

A
  1. Publish CHP.
  2. Adequate Professional Indemnity Insurance.
  3. Make arrangements to continue work in the absence of their ‘Sole Principal’.
  4. Cooperate with RICS.
  5. Provide all information reasonably requested by Standards and Regulations Board.
  6. Denote that they are RICS regulated.
  7. Report any matter they are required to do so under the Rules for the Registration of Firms.
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39
Q

What is the Ethics Decision Tree?

A

A framework setting out a series of questions upon which members should follow if asked to carry out instruction they feel may be unethical or unlawful.

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40
Q

What is the ultimate test?

A

Ask yourself, would I be happy for my actions to go public?

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41
Q

Who might you contact with an ethical issue?

A

The RICS Regulation Confidential Hotline

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42
Q

Explain the structure of the Ethics Decision Tree.

A

Ask yourself the following:

  • is it legal
  • do I have sufficient facts
  • is it in line with the RICS Rules of Conduct
  • am I competent enough
  • do you have clear reasoning
  • the ULTIMATE test - actions made public
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43
Q

How might a disciplinary procedure be triggered?

A
  • Failure to comply with RICS requirements
  • Complaint made by a client to the RICS
44
Q

What document might you refer to for advice on disciplinary procedures?

A

RICS Regulatory Decision Making 2022

45
Q

What are the THREE levels of disciplinary action?

A
  1. Action by Head of Regulation
  2. Disciplinary Panel
  3. Appeal Panel
46
Q

What is the initial investigation stage for an alleged disciplinary action?

A

A formal investigation held by the Head of Regulations could initiate one of FOUR actions.

47
Q

What are the FOUR disciplinary actions?

A
  1. Fixed Penalty Notice
  2. Regulatory Complaint Order
  3. Refer the matter to a single member of the Regulatory Tribunal for consideration
  4. Disciplinary Panel
48
Q

What is a Fixed Penalty?

A

A fine or a caution

  • failing to supply information to the RICS by firm or member
49
Q

What is a Regulatory Compliance Order?

A
  • Written document confirming correction and avoidance steps.

relating to low level breeches.

e.g. – failure to comply with CPD requirements.

50
Q

What is action by a Disciplinary Panel?

A

This is for more serious breech of conduct.

  • ONE of SEVEN penalties can be concluded.
51
Q

Give an example of the SEVEN disciplinary penalties.

A
  • Fine
  • Reprimand
  • Expulsion
  • Result publication in the RICS modus magazine.
52
Q

What is the role of the Appeal Panel?

A

To review any appeals made against the above disciplinary actions.

53
Q

What RICS guidance might one refer too for social media?

A

Use of social media: Guidance for RICS members, 2021.

54
Q

What is outlined in the RICS social media guidance?

A

The importance of safe use of social media.

55
Q

What social media concerns are the RICS likely to investigate/not-tolerate?

A

Those relating to unethical views, such as dishonesty and discrimination. The 9-protected characteristics are a good guide.

56
Q

Explain your awareness of fee negotiations and the RICS.

A
  • AGGRESSIVE fee cutting is not allowed.
  • Fees should be market based.
  • You must be completely transparent when delivering a fee to a client.
57
Q

What might you consider when accepting a referral fee?

A
  • Your compliance with the Bribery Act 2010.
  • The RICS Rules of Conduct.
58
Q

What are terms of engagement?

A

A written document including:
- Clients’ agreement to proposed fee basis.
- Payment of expense (and how calculated).
- Outline that a copy of the firms CHP is available upon request.

59
Q

What are the THREE steps to accepting a job/work?

A
  1. Check professional competence
  2. Check for conflicts of interest
  3. Confirm and approve terms of engagement BEFORE you start work
60
Q

Why might you decline an instruction?

A
  1. Competence
  2. Sufficient facts
  3. Conflict of interest
  4. Refer back to ethics decision tree – would I be happy for my actions to be made public (RICS Modus).
61
Q

What is a conflict of interest?

A

A conflict of interest is when an individual’s independence and impartiality is threatened due to the existence of a conflict.

62
Q

Give an example of where a conflict of interest may arise.

A
  • Financial interest
  • Personal interest
  • Commercial relationship
63
Q

You have identified a conflict of interest. What are your options?

A
  1. Conflict avoidance
  2. Conflict management
64
Q

What is the difference between conflict avoidance and conflict management.

A
  • Conflict avoidance is when you decline instruction in light of a conflict.
  • Conflict management is when you accept instruction but put steps in place to manage the conflict.
65
Q

How might you manage a conflict?

A

Information or ethical barrier.

66
Q

What is an information barrier?

A

The physical or electronic separation of individuals or departments to prevent confidential information passing.

67
Q

What RICS standard covers conflicts of interests?

A

RICS Global and Professional Standard: Conflicts of Interest 2017.

68
Q

What does the RICS Global and Professional Standard: Conflicts of Interest 2017 cover/state?

A
  • Members or firms must not accept instruction where a conflict of interest has been identified without informed consent.
  • Informed consent is only allowed is the member/firm is confident that proceeding will not see either party prohibited by law.
69
Q

There are THREE types of conflict of interest, can you name these?

A
  1. Party Conflict
  2. Own Interest Conflict
  3. Confidential Information Conflict
70
Q

Where a conflict arises, you must undertake THREE steps. What are these THREE steps?

A
  1. Conflict avoidance
  2. Written advice
  3. Conflict management (set up information barrier)
71
Q

What is Dual Agency?

A

Where an agent has a contractual relationship between both seller and buyer.

  • Dual Agency should not be practised by any RICS member.
72
Q

What is Incremental Advice?

A

Where an agent is approached by another party to provide advice relating to purchase or disposal that is incremental to an existing instruction.

73
Q

Give an example of Incremental Advice.

A

An agent acting on behalf of a seller, is approached by a buyer, or its lender, to provide a valuation.

74
Q

Would you give Incremental Advice?

A

Only if consent was given, and appropriate information barriers were put in place.

75
Q

When might Personal/Own Interest arise?

A

When acting for a connected person. AKA family, friend or close business associate.

76
Q

What act might you refer too when declaring a conflict?

A

Section 21 of the Estate Agents Act 1979 – requires declaration for agency work.

77
Q

How long should you hold old files/information?

A

For a minimum of 6-years.

78
Q

You receive confidential information as a matter of error. What do you do?

A
  • Report to Roxburghe Estates compliance officer.
  • Securely dispose of this information.
79
Q

Can you use confidential material received/intercepted in error?

A

Certainly not.

80
Q

Is it a requirement for RICS regulated firms to have a Complaints Handling Procedure?

A

Yes, and it must be compliant with the 2021 ROC.

81
Q

When might you issue your complaint handling procedure?

A
  • At the same time as terms of business.
  • to a complainant upon receiving a complaint
82
Q

What might you do is somebody lodges a complaint?

A
  • Update Roxburghe Estates complaints handling log.
  • Inform PII as soon as reasonably possible.
83
Q

What might you include within your complaint handling procedure?

A

Approver Alternate Dispute Resolution (ADR).

84
Q

What would Roxburghe estates do if they received a complaint?

A
  • inform the complaints handling officer, the MD at Roxburghe
  • acknowledge the complaint within 7 days
  • investigate the complaint within 28 days
85
Q

What are the CPD requirements for RICS members?

A
  • Minimum of 20 hours per calendar year.
  • 50% must be ‘formal’.
  • Members must remain up to date with current RICS Rules of Conduct.
  • Record all CPD by 31st of January each year.
86
Q

If you were to qualify, where would you record your 20-hours CPD?

A

The RICS’s CPD Management System.

87
Q

What is formal CPD?

A

Structured learning such as:
- Online training
- Professional course

88
Q

What is informal CPD?

A

Self-managed learning relevant to your professional role such as:
- Podcasts
- seminars

89
Q

How might you differentiate between formal and informal CPD?

A

You could refer to the RICS Decision Tree.

90
Q

When might a negligence claim be made?

A

When a duty of care is breached resulting in either loss or damage.

91
Q

What case study refers to Duty of Care?

A

Burgess vs Lejonvorn (2020)

  • services provided on a pro bono basis must be carried out with reasonable care and skill. However, the service provider are not under any duty to advise or give warnings. Nor are they liable for work they do not do.
92
Q

How do Roxburghe Estates avoid negligence?

A
  • Have signed TOB in place
  • Ensure staff are properly trained
  • Clearly understanding client’s objectives
93
Q

What is Professional Indemnity Insurance?

A

Insurance protecting clients, surveyors & third parties against negligence claims.

94
Q

How is the appropriate level of PII calculated?

A

The insurance figure is based on a firms turnover.

95
Q

What are the PII requirement levels?

A

£100k or less (£250k)
£100,001 - £200k (£500k)
£200,001 + (£1,0000)

96
Q

Tell me about your firms PII policy.

A

RE do not carry PII, as we do not give advice.

97
Q

What is Roxburghe Estates PII excess?

A

n/a

98
Q

What does a full retroactive policy mean?

A

This covers firms regardless of whether a negligent act has occurred.

99
Q

What is ‘run off’ cover?

A

Covers a firm, and employees after they stop working.

100
Q

What is the minimum level of ‘run off’ cover?

A

SIX years.

101
Q

What are the SIX main areas of good practise as set out in the RICS Professional Standards: Client Money Handling, 2019.

A
  1. Holding client money
  2. Providing information to clients
  3. Receipts of client money
  4. Payments from client accounts
  5. Accounting records and controls
102
Q

Give an example of client money you would deal with at RE?

A

Rent or deposits

103
Q

Which Rule of Conduct covers client money?

A

Rule 5

104
Q

What is bank reconciliation?

A

A way to doublecheck book keeping by comparing business accounts to bank statements.

105
Q

What are the three objectives of the RICS Professional Statement Client Money Handling

A
  • Keep client money safe
  • Accounts are used for appropriate purposes
  • RICS regulated firms have the correct controls and procedures to safeguard client money
106
Q

What procedures must Chartered Surveyors be aware of?

A
  • Client accounts must be kept separately and clearly identifiable
  • the word client is on the bank account and chequebook
  • a client must be able to have their monies on demand
107
Q
A

Patrick Kelly APC (4 decks)

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