Ethics, Rules of Conduct and Professionalism Flashcards
What are the new rules of conduct?
- replace the previous version which had been in place for members and firms since 2007
- came into effect on 2 February 2022
- Simpler Structure
- Clear examples
- Focus on respect, diversity and inclusion
- Understanding evolving technology
- Tackling global challenges
What is rule 1?
Members and firms must be honest, act with integrity and comply with their
professional obligations, including obligations to RICS
What is rule 2?
Members and firms must maintain their professional competence and ensure
that services are provided by competent individuals who have the necessary
expertise.
What is rule 3?
Members and firms must provide good-quality and diligent service.
What is rule 4?
Members and firms must treat others with respect and encourage diversity and
inclusion
What is 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 does the RICS Professionalism module include?
- Understand the importance of the RICS Rules of Conduct, including ethical principles and your role as an RICS professional
- Know the five Rules of Conduct that RICS members observe
- Understand how the Rules relate to the regulatory framework of RICS
- Review and reflect on your learning from this short course
- Complete the “choose your own adventure” case study
What is the CPD requirements for members?
20 hours 50% formal
What is the difference between informal and formal CPD?
Formal:
- Courses, seminars and conferences
- Structured seminars and discussions
- Formal Learning and development
Computer based training
Informal:
- Reading and private study
- Mentoring
- Shadowing
What constitutes a conflict of interest?
- a situation in which the duty of an RICS member or a regulated firm to act in the interests of a client or other party in a professional assignment conflicts with a duty owed to another client or party in relation to the same or a related professional assignment
- a situation in which the duty of an RICS member or a regulated firm to act in the interests of a
client in a professional assignment conflicts with the interests of that same RICS member/
firm - a conflict between the duty of an RICS member under paragraph 2.2 to provide material information to one client, and the duty of that RICS member or of a regulated firm under paragraph 2.1 to another client to keep that same information confidential
What action should I take should a conflict arise?
only consider proceeding with Informed Consent if you are satisfied that all of the relevant clients’ (or other parties’) interests will be served by you doing the work (as opposed to another firm doing it).
You should not seek Informed Consent in order to proceed because your firm’s interests are served by doing so.
Obtaining Informed Consent is a process that requires proper consideration, professional judgment, and careful execution with every affected party.
What constitutes integrity?
the quality of being honest and having strong moral principles
Why is honesty important?
It makes you more reliable. In all your relationships, honesty is what makes you much more reliable and trustworthy. By being honest, you get people to trust you more. You show everyone else that you wouldn’t be dishonest with them because you value your relationships.
What is diversity and inclusion?
Diversity and inclusion are interconnected concepts that refer to the variety of unique individuals that make up a group of people and the environment that allows them to work together as equally valued contributors. Workplaces that prioritize diversity and inclusion efforts have been statistically proven to be safer, happier and more productive work environments.
Why is it important to act in the public interest?
Maintains confidence in the profession
What does equans anti bribery and modern slavery declaration state?
Asks firms to confirm if they have complied with legislation which relates to bribery, fraud, theft, money laundering or competition law
Asks firms to confirm they have complied with legislation which prohibits any form of slavery, servitude, forced or compulsory labour, or the trafficking of individuals (hereafter “Modern Slavery”) for the purposes of exploitation as defined by sections 1,2 and 4 of the Modern Slavery Act 2015?
How do you ensure transparency in negotiated tender agreements and variations?
I ensure to be honest with my approach to negotiated tenders and all pricing of works and variations
What is recommended levels of PII by RICS?
Firm’s turnover in the preceding year Minimum limit of indemnity
£100,000 or less = £250,000
£100,001 to £200,000 = £500,000
£200,001 and above = £1,000,000
What is levels of EL and PL insurance for contract?
5 million
What is required to take out PII?
- Each and every claim
RICS sets out min levels of indemnity - Be fully retroactive
- Run off cover
- The policy should cover past and present employees, dirctors and partners
What are the hot topics RICS have recently looked at that impact you as a QS?
- Fire safety
- New PII Requirements
- Rule of Conduct updates
- Levitt Report
- RICS Business Plan
- RICS Leadership Team
- recession
- Inflation
What are the new RICS Professional Indemnity Insurance Requirements for 2022?
- Updated following the UK PII requirements Version 9
- Introduced a change to max unisured excess of PII
- Turnover in excess of 10m = no max limit of uninsured excess
- £10m or less = The greater of 2.5% of the sum insured, or
£10,000
What is the RICS futures report
- construction produces large amounts of data
- 95% data wasted
- RICS setting up and innovation and tech hub to provide a centre of expertise on how data can be put to good use
- Rapid urbanisation in china - Urban land doubled since 2000 resulting in polluted congested and expensive areas
- RICS aims to encourage members in the regions to adopt more sustainable approach to the areas
Adopting drone tech
- RICS developed online courses to support surveyors use the tech efficiently, safely and legally
What is the RICs Levitt Report?
- Commissioned by RICS following a treasury management audit in 2018
- Prior to the audit RICS had to extend its overdraft facility by £3m due to inaccurate cashflow forecasting
- Treasury management audit offered a ‘no assurance verdict’ on internal financial control procedures following which the levitt report was commissioned
- the conclusion illuded to an internal power struggle due to it two board structure made up of management board and executive board
RICS Accepted each recommendation :
- Governing council are to have more oversight over internal dealings of the RICS
- Governing council are to be briefed by the management board as apposed to a signle CEO
- Governing council are to oversee executive management bonuses
- called for greater transparency as the CEO could have involved management board in order to rectify the treasury issues
- No evidence of improper or illegal conduct was discovered
Are you aware of some of the aims highlighted in the RICS business plan for 21-22?
Incorporate Levitt Recommendations:
- Be more open and transparent with members and public about operation of the institution including decision making and finances
- Developing and implementing new more effective internal whistleblowing arrangements
- Reviewing the arrangments for senior executive reward
Immediate financial Priorities:
- Continued support of the profession following Covid 19 and seek to minimise subscription increases
- Utilise surplus cash to pay back gov for furlough monies
- Reduce RICS need to access external financial support
- Reduce any funding defecit in the closed final salary pension scheme
Who is RICS CEO?
Justin Young
Background in ops managment and business transformation programmes focused on customer experience
- Real estate sector
- South east asia, Europe and the UK
Who is the RICS President?
Ann Gray FRICS
a real estate broker and licensed architect in Los Angeles, California
Who is the president Elect?
Tina Paillet FRICS
CEO & Co-Founder of Circotrade – a technologically enabled trading platform designed to facilitate and unlock the future value of your building’s materials
Why did the previous rules of conduct change?
- Previous been in place since 2007
- majority of members, firms and public voted in favour of replacing
- To provide a single document to enable greater clarity
- Greater focus on clearer example behaviours, understanding evolving tech and tackling clim change
Talk through your understanding of the changes to the new rules?
Rules of conduct 2021 overhauled:
- Rules of conduct for members
-Rules of conduct for firms
- Global professional and ethical standards
- Appendix A of the Rules of conduct now contains the professional obligations of members and firms
Explain your understanding of Rule 1?
- Having reviewed the example behaviours in adhereing to rule 1 members and firms should not allow themselves to be influenced impropoerly through the acceptance of work referals, gifts or hospitality
- M&F must also be sure to identify conflicts of interest and not provide services or advice where these conflicts of interest occur
Explain your understanding of Rule 2?
- M&F must only act for clients where they have the neccesary knowledge, skills and resource to carry out the work competently
- Firms must supervise any employees or subbies undertaking work on their behalf
Explain your understanding of Rule 3?
- As a M or F we must also be sure to understand a clients project specific requirements before acting on their behalf.
- Clients scope of services should be agreed along with any exclusions and timescales for acheiving each of the deliverables before signing up to formal terms of engagement
Explain your understanding of Rule 4?
- Members should respect the rights of others and treat others with courtesy
- We need to ensure that everyone is treated fairly and look to eliminate any instances of discrimination on the basis of age, disability, gender, pregancy, race, religion, or sexual orientation
-RICS M & F also need to adopt a no tolerance policy of bullying or harassment
Explain your understanding of Rule 5?
- M & F are required to question practices and decisions that they suspect are not right and raise concerns with colleagues, senior management, clients or the RICS
- When making public statements we need to ensure these do not undermine public confidence in the profession.
- When receiving and processing complaints we need to ensure these are dealt with promptly, openly and professionally
What are the professional obligations of members?
CPD 20 hours each year atleast 50% formal
- Members must cooperate with the RICS
- Members must promptly provide all info reasonably requested by the standards and regs board, or those excercising delegated authority on itd behalf
What are the professional obligations of firms?
- Must publish a complaints handling procedure, which includes an ADR provider approved by RICS and maintain a complaints log
- Must ensure all previous and current work is covered by appropriate PII
- Firms with a sole principal must take appropriate arrangments are in place for their professional work to continue if they a incapacitated
- Firms must cooperate with the RICS
- Firms must promtly provide info reasonably requested by the standards and regulation board or those excercising DLA on their behalf
- Firms must display on their business literature in accordance with RICS published policy designations a denote that they are regulated by RICS
- Firms must report to RICS any matter that they are required to report under the rules for registration of firms
What steps would you take in the event of a main contractor insolvency?
RICS GN - Termination of contract, corporate recovery and insolvency
- Secure the site and off site materials (If paid for)
- Excercise relevant clauses - notice to terminate
- Call in any bonds that are due
- Explore if collateral warranties are in place
- consider if an insolvency expert is required
- keep detailed records of current progress and the time of insolvency
- Prepare and issue a statement of valuation highlighting current progress and any risks and ongoing claims
- Prepare a notional FA
- Liaise with appointed administrators
- Make a schedule of works to complete at date of termination
- Undertake steps for reletting of works
What key challanges does the global economic recession present to your area of surveying?
- Rising inflation rates of 10-11% has resulted in a large increase in borrowing costs
- additional challenges and pressures on developers and building owners facing greater pressures on budget plans undertaken prior to interest rises
- Financial viability of projects no longer stacks up
- Shift to home working has resulted in scaling back of office space - repurposed or postponed
- Online shopping - high streets and shopping centres are now becoming less attractive creating greater pressures on retailers
- Demand for logistic space and data centres has remained strong closely linked to growth of online retail and big tech companies
- Rising inflation has resulted in net reduction in fee income in real terms as clients demands that previous fee levels are maintained where possible
Impacts of war in Ukraine in UK?
- significant energy price increases
- products with high energy input have also increased: Steel bricks plastics ceramics
- delay an disruptions
How has brexit affected uk?
- movement of people is more restricted
- employers must now register as sponsors to recruit abroad
- induviduals must meet job, salary and language requirements
- labour cost increases and reduction in availibility
- will have to meet relevant rules of of origin for products
- price of goods moving across borders is expected to increase due to additional border checks and admin
- cost increases and availibility issues of steel plastic cement and plasterboard
Are you aware of any GN on brexit?
Are you aware of any GN on covid 19?
Covid 19 guide to surveying services
- Physical inspections for resi
- physical inspections for non dom properties
-Resi valuations and surveys - Reopening of the housing market
-Reopening of commercial buildings
What impact has covid 19 had on your area?
- material cost increases
- material availibilty
- steel increased by 22% in the last year
- Plastics plasterboard and labour availibility increasingly scarce
-Due to significant cost increases the viability of projects has been affected
COVID 19 - How have you helped clients with this?
- early order placements to negate risk of further price increases and material availibility issues
- kept clients updated on impending price increases when made aware
- through early notification, contingency plans have been put in place to increase cost certainty and negate further material price increases and lack of availability
What is your RICS Membership Number?
6790820
How many members of the RICS are there?
140,000 across 146 countries
What is the RICS London HQ address?
12 Great George Street (Parilament Square), Westminster, London, SW1P 3AD
What does the RICS stand for?
Royal Instition of Chartered Surveyors
What is the role of the RICS?
promotes and enforces the highest professional qualifications and standards in the development and management of land, real estate, construction and infrastructure
- Regulate and promote the profession
- Maintain the highest educational and professional standards
- Protect clients and consumers through a strict code of ethics
- Provide Impartial Advice, analysis and guidance
What is the Carsberg report?
A wide-ranging review of Royal Institution of Chartered Surveyors regulation has recommended greater separation of regulatory and representational functions.
What are the various RICS statuses?
Trainee
Student
Graduate
Assoc RICS
Member RICS
Fellowship RICS
How many RICS Professional groups are there?
18
Name some RICs Faculties?
Quantity Surveying
Building Surveying
Project Management
Valuation
Facilities Management
Dispute Resolution
What is the ISO Standard for anti-bribery?
37001
What is the ISO Standard for Corporate Social Responsibility?
26000
What is the RICS black book?
A suite of guidance notes that define good technical standards for Qs & construction professionals
What are there black books on?
- Change control and management
- Commercial management of construction
-Conflict avoidance and dispute resoltion in construction - Cost reporting
- E tendering
- Employers agent: D&B
- Final Account Procedures
- FLuctuations
- Retention
- Subcontracting
Are guidance notes compulsory to follow?
No. However if there was a case of professional negligence, the court would take into consideration whether or not guidance notes were followed.
Are practice notes compulsory?
Yes
What is an RICS Code of Practice (CoP)?
A document developed in collaboration with other professional bodies and stakeholders that will have the status of a professional statement or guidance note
What is an RICS professional Statement (PS)
Mandatory requirements for RICS members and regulated firms.
What is an RICS Guidance Note
A document that provides users with recommendations or an approach for accepted good practice as followed by competent and conscientious practitioners.
What is an International Standard
High-level standard developed in collaboration with other relevant bodies - MANDATORY.
What is an RICS Jurisdiction Guide
This provides relevant local market information associated with an RICS international standard or RICS professional statement. This will include local legislation, associations and professional bodies as well as any other useful information that will help a user understand the local requirements connected with the standard or statement. This is not guidance or best practice material, but rather information to support adoption and implementation of the standard or statement locally.
When was the Bribery Act introduced?
2010, came into force in 2011
