Ethics, Rules of Conduct and Professionalism Flashcards
Why do you want to become a member of the RICS?
I want to be a member of a professional body which promotes integrity and professionalism, which is recognised and valued by clients. I want to give back to the industry and be able to assist in making the built environment better.
What is the RICS motto?
‘Est Modus in Rebus’ - ‘There is measure in all things’
What is the role of the RICS?
To qualify and equip their members to offer the highest professional standards
What are the key functions of the RICS?
Promote and enforce high professional standards, regulate chartered professionals, and provide expert advice to governments, businesses, and the public in the built and natural environment
What is a Royal Charter?
Awarded in 1881 by Queen Victoria, to maintain and promote the usefulness of the profession for the public advantage
Who is the current RICS president?
Justin Sullivan
What do you understand by the term self-regulation?
self-regulation means the organisation, through its Standards and Regulation Board (SRB), sets and enforces standards for its members and regulated firms
Can you tell me what you understand by the principles of better regulation?
- Proportionality
- Accountability
- Consistency
- Targeting
- Transparency
What is a Bye-Law?
Rules that govern the organisation’s internal operations
Give an example of one of the RICS Bye-Laws
Every member shall conduct themselves in a manner befitting their professional status and membership of the Institution, avoiding any action likely to discredit the Institution or the profession.
When was the RICS Rules of Conduct issued and when did the rules become effect?
Issued in October 2021 and effective from 02 February 2022
What changes were made to the Rules of Conduct 2022?
- Provide a simpler structure
- Give clear examples
- Focus on respect, diversity and inclusion
- Respond to evolving technology
- Emphasis of members expertise in tackling global challenges.
What did the RICS Rules of Conduct replace?
Up until the 1st February 2022 there were 5 Global Professional & Ethical Standards
From 2nd February 2022 onwards the Global Professional & ethical standards have been consolidated within the New Rules of Conduct 2022
What are the 6 ethical principles that the Rules of Conduct are based on?
Honesty
Integrity
Competence
Service
Respect
Responsibility
What are the 5 rules
Rule 1 - Members and firms must be honest, act with integrity and comply with their professional obligations, including obligations to the RICS
Rule 2 - Members and firms must maintain their professional competence and ensure that services are provided by competent individuals who have the necessary expertise
Rule 3 - Members and firms must provide a good quality and diligent service
Rule 4 - Members and firms must treat others with respect and encourage diversity and inclusion.
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.
Please could you provide me with an example as to when you have acted with honesty and integrity at work? (Rule 1)
In December 2024 I received a Christmas gift from one of my clients, in the form of a Hamper filled with wine, cheese etc. to thank me for the work I have done for them over the past year.
I determined that this gift was worth above the £25 limit under my firms Gifts and Hospitality policy. Therefore, remaining in line with this policy, I informed my line manager, declared it on our gifts register and advised it to be raffled off for charity.
To maintain transparency with my client, I thanked them for the kind gesture and informed them that under our policy, I was required to declare the gift.
Please could you provide me with an example as to when you have ensured you are maintaining and acting with competence at work? (Rule 2)
I ensure I am consistently maintaining and developing my knowledge and skills through undertaking continuing professional development (CPD). For example I recently attended an insurance update training session, to gain insights into how insurance premiums are calculated.
Please could you provide me with an example as to when you have provided good quality and diligent service at work? (Rule 3)
Upon taking on a new client I have requested information to conduct anti money laundering checks before entering into a PMA. I work alongside our compliance department who conducts checks.
Please could you provide me with an example of when you have taken responsibility and have acted in the public interest (Rule 5)?
I’m fortunate to of not received a complaint. However, should I receive one I would comply with my firms complaints handling procedure.
Please could you provide me with an example of when you have treated others with respect and encouraged diversity within the workplace (Rule 4)?
Recently we had an apprentice join our team, I acted as their ‘buddy’ to provide them with support and guidance when starting out, i ensure i make all new starters feel welcome regardless of their background or role.
What are the core professional obligations of firms and members to the RICS?
- Members must comply with CPD requirements
- Members and Firms must cooperate with the RICS
- Members and Firms must promptly provide all information reasonably requested by the Standards and Regulation Board, or those exercising delegated authority on its behalf.
- Firms must have a complaints handling procedure
- Firms must have professional indemnity insurance
- Firms must have a locum if there is a sole principle
What disciplinary procedures can the RICS impose? In what circumstances can these be imposed?
- Conduct Committee (can serve a fixed penalty notice or make a consent order)
- Disciplinary Panel (can issue caution, impose a fine, expel) - for more serious breaches.
- Appeal Panel - relate to 3 levels of disciplinary procedure - fixed penalty notice, disciplinary panel or registration panel.
When did the RICS last update their disciplinary panel rules?
RICS Disciplinary, Registration and Appeal Panel Rules
Version 8 with effect from 1 October 2019
What are the different levels of action with the disciplinary procedures?
Minor issues result in informal advice or fixed penalty notices,
Moderate breaches may lead to formal reprimands or consent orders.
Serious offences are dealt with by disciplinary panels who may impose fines, membership conditions, suspension or expulsion.
Members have a right to appeal these decisions via an independent Appeal Panel.
What do you understand by the term professional practice?
Providing professional services performed by qualified individuals or regulated firms, adhering strictly to the ethical guidelines and professional standards set by RICS
What money laundering regulations are you aware of?
RICS professional statement: Countering bribery, corruption, money laundering and terrorist financing - Effective 1st September 2019)
What is a red flag of money laundering?
A warning sign or indicator that suggests potential criminal activity - such as a sudden surge in transactions
What bribery legislation are you aware of?
The Bribery Act 2010
What is a bribe?
Something given in expectation of a change of behaviour.
What are the penalties for accepting a bribe?
Accepting a bribe is viewed as a serious breach of RICS ethical standards. Penalties include expulsion or suspension from RICS membership, significant fines, public disciplinary publication, and potential criminal prosecution
What are the penalties for being involved in money laundering?
Involvement in money laundering is a serious breach of RICS ethical standards and criminal law. RICS penalties include expulsion, suspension, large fines, and public disciplinary publication. Additionally, criminal penalties may include fines, imprisonment
What constitutes an offence under the Bribery Act 2010?
- Bribing another person
- Being bribed
- Bribing of foreign public officials
- Failure of commercial organisations to prevent bribery.
What constitutes an offence under current money laundering regulations?
when an individual or firm facilitates financial crime, including money laundering, tax evasion, bribery, or corruption, or when they fail to implement effective processes to prevent such activities by their directors, partners, or employees
How long should you keep anti-money laundering records for?
Five years from the date a business relationship ends or a transaction is completed
What is professional indemnity insurance?
Insurance that protects businesses from claims arising from negligent advice or services provided to clients or third parties
What is negligence?
failure to provide the duty of care that is owed.
What is the purpose of PII for firms and individuals?
- protects firms from financial loss if they cannot meet the claim from their own resources.
- Protects the insured member or firm against the consequences of its liability to pay damages to a third party for breaches of professional duty.
- Ensures that a firms clients can recover their financial losses.
Can you tell me about the RICS requirements in relations to PII?
‘Firms must ensure that all previous and current professional work is covered by adequate and
appropriate professional indemnity cover that meets the standards approved by RICS.’
What are the minimum levels of indemnity?
Firms turnover in the preceding year = Minimum limit of indemnity (this is for each and every claim)
£100,000 or less = £250,000
£100,001 to £200,000 = £500,000
£200,001 and above = £1,000,000
What is the minimum level of uninsured excess?
Up to and including £500k - the greater of 2.5% of the sum insured or £10k
over £500k - 2.5% of the sum insured.
What does ‘claims made’ mean in terms of PII?
A ‘claims made’ PII policy covers claims that are notified to the insurer within the policy period, regardless of when the event causing the claim took place, subject to any specified retroactive date
Is PII excess usually paid for per claim?
Yes, the excess under Professional Indemnity Insurance is usually payable on a per claim basis. This means the insured pays the excess each time a separate claim is made, rather than once for multiple claims.
In a negligence claim, what would help to show that you acted with consideration and due process?
In a negligence claim, clear documentation and records demonstrating that I agreed written terms, checked competency and conflicts of interest, complied fully with RICS standards, undertook thorough due diligence, and kept detailed file notes and evidence of professional advice would show that I acted with consideration and followed due process
Can good record keeping help to provide a defence in a PII claim?
Yes, good record-keeping can be crucial for defending a Professional Indemnity Insurance (PII) claim
If you were providing services outside of your usual scope to a client, what might you need to do in relation to your PII cover?
I would contact my PII provider to confirm whether the new services are covered by my existing policy. If they weren’t, I would arrange an extension of cover or additional insurance, and formally notify the insurer to ensure full compliance and adequate protection.
What is run off cover?
Run off cover is a form of PII providing cover for past liabilities of a business once it has ceased trading.
How long does the RICS require firms and individuals to have run off cover in place?
15 Years
What changes did RICS recently make to the Minimum Approved PII wording?
The new Minimum Policy Wording and insurance rules will mean that from 1 May 2021*, PII policies will provide greater fire safety cover for chartered surveyors
Would a dictated report avoid the need to have any written side notes?
No, even with a dictated report, RICS standards require written notes, inspection details, and calculations to be retained on file. Dictation alone does not fulfil the RICS requirement for comprehensive supporting documentation.
Explain PII requirements relating to fire safety and cyber cover?
Professional Indemnity Insurance must explicitly cover fire safety services if undertaken, including activities like fire risk assessments or advice on cladding. Regarding cyber cover, while not mandatory, RICS strongly advises firms to obtain cyber insurance to manage risks associated with data breaches and cyber-attacks.
How long can a PII claim arise after the work is undertaken?
15 Years
Who is the assigned risks pool? (ARP)
a facility provided by RICS to help regulated firms that are unable to secure Professional Indemnity Insurance (PII) through the open insurance market.
Explain your understanding of the RICS Guidance Note Risk, Liability and Insurance (1st Edition).
Purpose: Help members manage professional risk, liability, and insurance obligations.
Key areas covered:
Risk Management: Identifying, mitigating, and managing risks.
Liability: Contractual limitations, clear terms, documentation.
PII: Ensuring suitable cover, managing claims, run-off cover.
Specialist Risks: Advice on high-risk areas (e.g., fire safety).
Cyber Liability: Understanding and insuring against cyber risks.
Tell me about when you have provided a high standard of service?
I hold bi-weekly calls with one of my clients to update them on their portfolios outstanding arrears and any ongoing rent reviews, this ensures full transparency on how these matters are progressing.
Explain how you have taken responsibility in your current role?
How would you set up an RICS firm, what is the process?
Notify the RICS of your intention
Appoint a lead communicator
Provide
