Ethics, Rules of Conduct and Professionalism & General Flashcards
RICS Rule of Conduct 1
Honesty, integrity, professional obligations to RICS
RICS Rule of Conduct 2
Maintain professional competence and deliver via competent individuals
RICS Rule of Conduct 3
Members and firms must provide good-quality and diligent service.
RICS Rule of Conduct 4
Treat others with respect and encourage diversity & inclusion
RICS Rule of Conduct 5
Act in public interest, take responsibility and act to prevent harm and maintain public confidence in RICS
When were the current Rules of Conduct introduced?
Up until the 1st February 2022 there were 5 Global Professional & Ethical Standards.
From the 2nd February 2022 onwards the Global Professional & Ethical Standards have been consolidated within the New Rules of Conduct 2022.
Summarise the Mission Statement of the RICS?
Qualify & equip members to offer highest standards of professional service.
Promote and enforce standards for the profession.
Lead solutions to the major challenges facing the built environment through professional expertise.
What’s the history of the RICS?
Founded in 1868.
Royal Charter granted in 1881.
RICS Moto - ‘Est Modus in Rebus’ which is Latin and translates to ‘There is measure in all things.’
How is the RICS Structured?
RICS is self-regulated and internally monitored meaning that it is not regulated by the Government or external parties.
The Bye-Laws determine how the RICS is regulated.
The Governing council manage and agree the strategy for the RICS. They sit above two boards, the RICS Board and the Standards and Regulation Board.
The RICS Board and Regulatory board are beneath the governing council and execute the strategy set by them.
What is the Client Money Protection Scheme?
This is a money protection scheme operated by the RICS.
It contains provision for any member of the public to be reimbursed their direct loss of funds when using an RICS regulated firm.
This is provided through an RICS insurance policy.
What are the RICS procedural requirements for handling client’s money?
Set clear segregation of duties for employees.
A Principal oversees the client money accounting functions.
Principles cannot override controls.
Competent and knowledgeable staff are to process clients’ money with cover provided for long term absence.
Accounting systems and data must be secure.
Client money must be kept separate and clearly identifiable with the word ‘client’ included in the bank account name.
Clients must always have access to funds.
We must agree the terms and advise the client on bank details.
The account must not be overdrawn.
We must maintain client ledgers and provide a running balance.
What are the RICS minimum requirements for complaints handling?
The process must include a redress mechanism.
Must acknowledge a complaint upon receipt.
It must be clear, quick, transparent and impartial and free of charge within the first stage.
Names and contact details of the nominated investigating person must be stated.
The complaint must be investigated within 28 days.
All complaints, their progress and outcomes must be recorded.
Firm must advise PI insurers of a complaint immediately.
The RICS provides a model form.
Details of the policy should be issued to the client with the Terms of Business.
What two stages of a complaints handling procedure do RICS require?
Stage 1 - is where there needs to be consideration of the complaint by a senior member of the firm or the complaints handling officer.
Stage 2 - if the issue is not resolved, the complaint is referred to an independent third party with the authority to award redress. The complainant may be expected to contribute towards costs at this stage.
What is PII?
Professional Indemnity Insurance (PII).
Protects businesses against claims arising from professional negligence, errors, or omissions in their work
What are the limitation periods for PII?
6 Years when executed under hand (aka standard contract).
12 years when executed as a deed.
What minimum levels of indemnity does RICS require of its members/firms?
Variable depending on firms turnover.
FIRMS TURNOVER = £100K OR LESS = £250K
FIRMS TURNOVER = £100K - £200K = £500K
FIRMS TURNOVER = £200K + = £1M
What are the maximum levels of uninsured excess are required by RICS?
Limit of Indemnity = <£10,000,000 or Less = Maximum Uninsured Excess = The greater of 2.5% or £10,000
Limit of Indemnity = £10,000,001 and above = Maximum Uninsured Excess = No limit
NOTE - The uninsured excess must be provided on an each and every claim basis other than in respect of Financial Services Claims where the excess can be provided on an each and every claimant basis.
What is run-off cover?
RICS require firms to have full retroactive run-off cover to provide cover to their members and clients following the closure of the firm.
What are RICS requirements for PII?
The policy cover must be made on an ‘each and every’ claim basis.
The RICS sets out the minimum levels of indemnity.
The RICS sets out the maximum levels of uninsured excess.
The policy should include cover for past and present employees, directors and partners.
Why was Merrit vs Babb significant?
Legal case from 2001 that highlights the importance of run-off cover.
A surveyor was sued for negligence by a former client of his old firm, which had since gone out of business.
The individual was successfully pursued for damages, shocking the industry and highlighting the vital importance of run-off cover.
What are the CPD requirements of RICS on its candidates and members?
Candidates - 48hrs / Year, 50% Formal CPD
Members - 20hrs / Year, 50% Formal CPD
All must complete RICS Ethics CPD on a rolling 3 year cycle.
What are the professional obligations on RICS Members?
- Members must comply with CPD requirements.
- Members must cooperate with RICS
- Members must promptly provide info to Standards & Regs Board
What are the professional obligations on RICS Firms?
- Firms must publish a complaints procedure, keep a log and list a RICS approved resolution provider
- Firms must have RICS approved indemnity cover for all previous and current work
- Firms with a sole principle must have cover arrangements.
- Firms must cooperate with RICS
- Firms must promptly provide info to Standards & Regs Board
- Firms must display that they are RICS-governed on business literature
- Firms must report any required matters to RICS as per “Rules for Registration for Firms”
What insurances does RICS require for setting up a new practice?
Professional Indemnity Insurance.
Employer’s Liability.
Public Liability.
Building’s & Contents insurance for an office premises.
What annual returns do RICS require of their regulated firms?
Type of business and staffing.
Nature of clients.
Firms annual turnover.
PI insurance details.
Complaints handling procedures
details and records.
Whether the firm holds clients’ money.
What procedures do RICS require to setup a new firm?
Contact the RICS for guidance and obtain a company start up pack.
Inform the RICS and register for regulation.
Appoint a contact officer for all RICS communication.
Prepare a complaints handling procedure.
Obtain Professional indemnity insurance cover.
Abide by the Rules of Conduct for Firms.
Use the designation ‘Regulated by RICS’ on all practice material
What is Lionheart?
LionHeart is a benevolent fund designed for past, present and future RICS professionals and their families.
Their aim is to support members through difficult times, whether personal or professional, from the beginning of their career as an APC candidate or apprentice, right through to retirement.
Is there a deadline for logging your CPD?
What are ramifications of not complying?
31st January for the previous year.
Fixed penalty caution, potentially a fine for future offences and eventually a disciplinary hearing.
What are the RICS’ CPD requirements?
Minimum of 20 hours CPD each calendar year (January to December).
50% must be formal CPD.
CPD on the Global Professional and Ethical Standards must be completed at least once every 3 years
Have you heard of the Conflict Avoidance Pledge?
Yes - it’s a pledge for organisations to commit to avoiding conflict and facilitating early resolution to potential disputes.
Aspects include;
- Try to resolve differences of opinion before they escalate into disputes
- Promote the value of collaborative working to prevent issues developing into disputes
- Commit to identifying, promoting and utilising conflict avoidance mechanisms.
What are the principles of better regulation?
Proportionality
Accountability
Consistency
Targeting
Transparency
Can you tell me about any bribery training you’ve completed?
Annual Anti-Bribery & Corruption compliance training complete as part of my client account (Google).
If a client was insistent you worked for them despite there being a conflict of interest, how would you proceed?
Initially, refuse.
If client insisted, review COI at hand and consider if it was feasible for me to proceed. If I did, I would obtain informed consent from all parties.
I would also consider public perception.
Why do you want to become a chartered surveyor?
- Be a part of a well-respected, professional organisation.
- Gain personal recognition and evidence of my experience and skills not otherwise evidenced in any formal way.
If a client was insistent you worked for them despite there being a conflict of interest, how would you proceed?
Initially - politely decline as there was a COI.
If the client was insistent - consider the type of COI. If I decided I could agree to work with them, I would seek informed consent from all parties confirming that they were aware of the COI and still happy to proceed.
One of my key considerations around proceeding would be public perception - despite everyone involved being comfortable with proceeding, would I be comfortable if that was made public?
How many professional groups are there within the RICS?
18, divided into 3 groups;
Property
Land
Built Environment
