Ethics, Rules of Conduct and Professionalism Flashcards
1
Q
What are the RICS Professional Standards and what to they include?
A
RICS Professional Standards are mandatory requirements that set out how members should provide services.
They include:
- Global Standards (Red Book) - Covering valuation and other surveying services
- Practice Statements - Mandatory requirements for specific areas of practice
- Guidance Notes - Recommended best practices
- Codes - Including the Code of Practice and Code of Measuring Practice
2
Q
What is Professional Indemnity Insurance?
A
Professional Indemnity Insurance (PII) is mandatory coverage that:
- Protects against claims of professional negligence or errors
- Must meet minimum levels set by RICS (typically based on fee income)
- Covers legal costs and compensation payments
- Must be maintained even after retiring (run-off cover)
3
Q
What is the RICS Moto
A
There is measure in all things
4
Q
What is RICS Core Ethical Principles?
A
- Honesty - Being truthful and transparent in all professional dealings
- Integrity - Maintaining high moral and professional standards
- Competence - Having the necessary skills and knowledge
- Service - Providing quality professional services
- Respect- Treating others with courtesy and consideration
- Responsibility - Taking ownership of professional actions and decisions
5
Q
What is the primary purpose of RICS according to its Royal Charter?
A
RICS’s main purpose is to help the public by making sure land and property resources are used in the best way possible to benefit society and the economy.
6
Q
What are the five core requirements for professional conduct
A
Members must:
- Act with honesty and integrity
- Maintain professional competence
- Provide quality, diligent service
- Treat others with respect and promote inclusion
- Act in public interest and prevent harm
7
Q
Who is the current president of the RICS?
A
Justin Sullivan
1st January 2025
o 143rd president of the RICS
8
Q
When did the new rules of conduct take effect?
A
2nd February 2022
9
Q
How many years after an instruction has been completed can a Professional Indemnity Insurance claim be made?
A
Six years from the date a loss was suffered
10
Q
What are the main principles that RICS Rules of Conduct are based on?
A
Honesty, integrity, competence, service, respect and responsibility
11
Q
Which bodies are part of the RICS governance structure?
A
Governing council sits at the top.
RICS Board and Standards and Regulation Board sit below.
12
Q
What are the 6 principles for preventing bribery in a company as set out in the guidance associated with The Bribery Act 2010?
A
- (Top Level Commitment) Leaders must set an example: The people in charge of the business need to show they’re serious about preventing bribery.
- (Proportionate Procedures) Matching procedures to your business: Create rules that are easy to understand and use.
- (Communication & Training) Keep everyone informed: Make sure all workers know about and understand the rules against bribery.
- (Monitor and Review) Keep checking how things work: Regularly check that your anti-bribery rules are working well.
- (Risk Assessment) Check for dangers: Look carefully at where bribery might happen in your business.
- (Due Diligence) Check before you act: Always look into people and companies before doing business with them.
13
Q
When was the RICS Founded?
A
RICS was founded in 1868.
14
Q
What are the core principles for fee negotiations?
A
- No price fixing or collusion
- Avoid aggressive price cutting
- Base fees on market conditions
- Conduct case-by-case negotiations
- Promote healthy competition
15
Q
What are the key confidentiality requirements under RICS?
A
- Maintain client confidentiality at all times
- Retain files for minimum 6 years
- Secure disposal of information
- No use of inadvertently obtained information
- Third-party access requires explicit client approval
16
Q
What are the key components of Professional Considerations in fee negotiations?
A
- Time and resources required
- Level of expertise needed
- Scope of work
17
Q
What legal compliance aspects must be considered during fee negotiations?
A
- Ensure transparency throughout process
- Follow Bribery Act 2010 requirements
- Adhere to RICS Rules of Conduct
18
Q
What are the essential elements of Terms of Engagement (ToE)?
A
- Written confirmation of proposed fee basis
- Payment terms for expenses
- Access to firm’s complaints handling procedure
- Written confirmation and signature before work begins
19
Q
What are valid grounds for declining instructions?
A
- Lack of professional competence
- Missing Terms of Engagement or AML checks
- Unable to agree on PII liability cap
- Refer to RICS Ethics Decision Tree for guidance
20
Q
How should professionals handle competency challenges?
A
- Assess ability to perform work
- Seek outside help when needed
- Be willing to step away if necessary
21
Q
What are the key responsibilities under Rule 5 (Public Interest)?
A
- Maintain professional standards globally
- Balance obligations with ethical considerations
- Take responsibility for decisions and actions
- Raise concerns through appropriate channels
22
Q
Who is the CEO of the RICS
A
Justin Young
23
Q
Who is the President Elect of the RICS
A
Nicholas Maclean
24
Q
Who is the RICS Senior Vice President?
A
Maureen Ehrenberg
25
What does RICS stand for?
The Royal Institution of Chartered Surveyors
26
What are the benefits of being an RICS member?
1. Status - professional credentials, client confidence
2. Recognition
3. Market Advantage
4. Knowledge
5. Network
27
What are the benefits of regulation for firms?
1. Confidence
2. Professionalism
3. Security - PII Cover & Complaints Handling Procedues
28
What are the five main rules of conduct for RICS members?
1. Act with honesty and integrity
2. Maintain professional competence
3. Provide good-quality and diligent service
4. Treat others with respect and encourage diversity
5. Act in public interest and maintain public confidence
29
Example where Rule 1 (Honesty and Integrity) is demonstrated
Not misleading others
- Avoiding improper influence
- Managing conflicts of interest
- Protecting client confidentiality
- Preventing financial crime
30
What are the main requirements under Rule 2 (Professional Competence)?
Only undertake work within expertise
- Supervise employees effectively
- Maintain and develop knowledge through CPD
- Stay up to date with relevant standards
31
What are key aspects of Rule 3 (Service Quality)?
Understanding client needs
- Clear scope agreement
- Timely and diligent work
- Clear communication
- Proper record keeping
- Promoting sustainable solutions
32
What does Rule 4 (Respect and Diversity) require?
Treating others with courtesy
- No discrimination
- No bullying or harassment
- Checking supply chains for modern slavery
- Developing inclusive workplace culture
33
What are the main requirements under Rule 5 (Public Interest)?
uestioning suspicious practices
- Supporting whistleblowers
- Maintaining public confidence
- Professional complaint handling
- Cooperating with investigations
- Managing professional finances responsibly
34
What are the mandatory obligations for RICS members?
1. Comply with CPD requirements
2. Cooperate with RICS
3. Promptly provide requested information to Standards and Regulation Board
35
What are key obligations for RICS-regulated firms?
Publish complaints procedure
- Maintain professional indemnity cover
- Have continuity arrangements
- Cooperate with RICS
- Display RICS regulation designation
- Report required matters to RICS
36
What are the basic CPD recording requirements for RICS members?
All members (AssocRICS, MRICS and FRICS) must record CPD online, while APC candidates use APC templates. Members must complete 20 hours by December 31 and record them by January 31.
37
What are the specific CPD hour requirements?
Members must complete 20 hours total per calendar year, with at least 10 hours being formal CPD and the remainder can be informal CPD.
38
What professional standards requirement exists for CPD?
Members must maintain current understanding of professional and ethical standards over a rolling three-year period. This learning can count as formal CPD.
39
Name the 4 levels of RICS membership?
1. RICS Student
2. Associate Member
3. Chartered Member
4. RICS Fellow
40
What are the eligibility requirements for becoming an RICS Fellow (FRICS)?
Chartered Members (MRICS) must have a minimum of five years post qualification and comply with rules of conduct. They need to demonstrate four out of twelve professional characteristics.
41
What are the four main categories of professional characteristics for FRICS?
Champion, Expert, Influencer, and Role Model
42
When was RICS founded and what is its current membership size?
RICS was founded in 1868 and currently has over 130,000 members worldwide
43
What are the two main boards of RICS?
The RICS Board (handles operations) and the Standards and Regulation Board (manages professional standards)
44
What is required for constitutional changes in RICS?
Constitutional changes require both member votes and Privy Council approval
45
What are the main committees under the Standards and Regulation Board?
The main committees are:
- Standards Committee
- Qualifications and Assessments Committee
- Dispute Resolution Appointments Board
- Valuation Assurance Committee
46
# Bribery, Corruption, Money Laundering and Terrorist Financing
What should be included in an anti-bribery register?
- Gifts
- Hospitality and entertainment expenses
- Customer travel
- Political contributions
- Charitable donations
- Potential conflicts of interest
47
# Bribery, Corruption, Money Laundering and Terrorist Financing:
What basic elements should firms consider in third-party risk assessment?
- Reliability of the professional
- Whether they are in an equivalent jurisdiction
- Nature of transaction
- Sector the client operates in
- Need for enhanced due diligence
48
# Bribery, Corruption, Money Laundering and Terrorist Financing (amended 2
What are the key requirements for RICS members regarding money laundering?
- Must not facilitate money laundering activities
- Must report suspicious activities to authorities
- Must keep suspicious activity reports confidential
49
What are the main reasons to decline an instruction?
* Lack of competence or insufficient facts
* Client refuses to sign Terms of Engagement
* Client refuses to complete Anti-Money Laundering Checks
* Conflict of interest or personal interest
* Unable to agree on PII liability cap
* Work requested as friendly advice/pro bono
* Client appears on UK government sanctions list
50
# Bribery Act 2010
What is a Bribe?
A bribe is the giving, offering, promising or receiving of an advantageous gift (like a payment, service, or favor) in exchange for an illegal action or breach of trust.
51
What are the four offenses under the Bribery Act 2010?
1. Bribery
2. Receiving a bribe
3. Bribing a foreign public official
4. Failing to prevent bribery
52
What is Negligence?
Negligence occures when a duty of care is breached resulting in a loss and/or damages
53
What is Professional Indemnity Insurance (PII)?
Professional indemnity insurance protects clients, surveyors, and third parties against negligence.
54
How are minimum PII levels determined?
Minimum levels of indemnity are based on firm turnover. For firms with turnover exceeding £200,000, the minimum level of cover is £1,000,000 per claim.
55
What information is required by RICS for registration?
RICS requires information in six key areas:
1. Business and staffing details
2. Statutory regulated activities (e.g. financial services)
3. Complaints handling procedures
4. Complaints records
5. Professional indemnity insurance details
6. Client money handling arrangements
