Ethics, Rules of Conduct and Professionalism Flashcards
Who is the current president of the RICS?
Tina Paillet FRICS
What are the RICS 5 Rules of Conduct?
1) Members and firms must be honest, act with integrity and comply with personal 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 a 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 public interest, take responsibility for their actions and act to prevent harm and maintain public confidence in the profession.
What are the rules for registration of firms?
• Must complete an application to register for regulation by RICS
• Must assign a responsible principle
• Firms must confirm their compliance with RICS obligations annually
What are the professional obligations mandatory for RICS firms?
• Must publish complaints handling procedure, including an ADR provider approved by RICS, and maintain a complaints log
• Ensure all previous and current professional work is covered by adequate PI insurance that meets standards approved by RICS
• Firms with sole principle must make appropriate arrangements for work to continue in the event of their incapacity, death or inability to work
• Firms must cooperate with RICS
• Must provide all information requested by the Standards and Regulation Board
• Must display on their business literature, in accordance with RICS’ published policy on designations, a designation to denote that the are regulated by the RICS.
• Must report to RICS on any matter that they are required to report under the Rules of Registration of Firms
What professional obligations are mandatory for all RICS members?
• Members must comply with CPD requirements set by RICS
• Members must cooperate with RICS
• Members must promptly provide all information reasonably requested by the Standards and Regulations Board, or those exercising delegated authority on its behalf
What are the requirements for Chartered RICS members?
1) Minimum 20 hours of CPD per year half being formal
2) Cooperate with the RICS
3) Promptly provide all information reasonably requested by the Standards and Regulations Board, or those exercising delegated authority on its behalf
What are the benefits of being an RICS Member?
a. Status
b. Recognition
c. Market advantage
d. Knowledge
e. Network
What is the Money Laundering, Terrorist Financing and Transfer of Funds Regulation 2017 (amended in 2023)?
Money laundering is when proceeds of crime are disguised as legitimate assets.
• There are requirements to have a written ML and TF risk assessment.
• Implement systems, policies and controls and procedures to address AML and TF risks.
• Estate Agents need to register with HMRC if they let individual properties for over 10,000 Euros a month.
• Customers due diligence checks on vendors, purchasers, landlords and tenants will have to be undertaken on new sales and any lettings or reletting.
• EDD (enhanced due diligence) checks will need to be undertaken if red flags occur
What is the role of the RICS?
• Maintain highest standards of education and training
• Protect consumers through strict regulation of professional standards
• Leading source of information and independent advice on land, property, construction and associated environmental issues
What was the Levitt Report?
- Criticism of RICS governance as a result of poor financial controls, reputational damage, apologies of wrongful dismissal of 4 non-executives who raised concerns. Internal governance was reviewed, and advice to increase board members.
- Governing council made a public apology to the 4 non-executives and published a values statement in response to the Levitt review, integrity, transparency, inclusion, collaboration, advocacy, and passion.
- Lord Bichard to lead an independent review into RICS purpose, governance, and strategy.
What are the five principles of RICS Regulation for Members and Firms: PACTT?
Proportionality: making penalty proportional to breach
Accountability: to members and the public
Consistency: treating all members the same
Targeting: Serious breaches
Transparency: to members, clients and public
What is the RICS Hierarchy of Publications?
Rule of Conduct
International Standards
Professional Statements
Practice Statement
Guidance Notes
Codes of Practice
Do you need Professional Indemnity Insurance and to what level with a firm?
Yes, all firms require PI insurance to protect clients, surveyors and third parties against negligence claims where a duty of care is breached, and a claim arises.
How do you handle clients’ money?
- RICS Rules of Conduct for Firms 2007 – Rule 8 – Client’s money: Preserve security of client’s money entrusted in course of business
- Clients’ money includes rent, service charges, holding deposits.
- RICS Professional Statement: Client Money Handling 1st Edition 2019:
o Holding Clients money
o Providing information to clients
o Receipts of client money
o Payments from client accounts
o Accounting records and controls
o Compliance
How would you start a new practice?
- Inform RICS of a new practice by completing firms details form
- Appoint responsible person for all RICS communication
- Register with RICS for regulation for firm
- Arrange PI insurance and send details to RICS
- Set up procedures for client money handling, including a protection scheme
- Obtain RICS approval for Complaints handling procedure
- Set up complaints log
- Appoint complaints handling officer
- Plan for succession/future running if sole practitioner
- Ensure CPD is logged online
- Ensure completion of an annual RICS annual return at the end of each year
