Ethics, rules of conduct and professionalism Flashcards
What are the Rules of Conduct?
A set of ethical standards specified by RICS which aim to maintain the best level of service to the public.
Can you tell me the first Rule of Conduct?
Members and firms must be honest, act with integrity and comply with their professional obligations.
Can you tell me the second Rule of Conduct?
Members and firms must maintain their professional competence and ensure that services are provided by competent individuals who have the necessary expertise.
Can you tell me the third Rule of Conduct?
Members and firms must provide good quality and diligent service.
Can you tell me the fourth Rule of Conduct?
Members and firms must treat others with respect and encourage diversity and inclusion.
Can you tell me the fifth Rule of Conduct?
Members and firms must act in the public interest, take responsibility for their actions and prevent harm and maintain public confidence in the profession.
Who is the current RICS President?
Nicholas Maclean is acting President temporarily amid a regulatory review into current president Justin Sullivan’s involvement as an expert witness in a High Court case in February to March 2025.
What is the role of RICS?
- Regulate and promote the profession
- Set and maintain educational standards
- Protect clients and public through a strict code of professional and ethical standards.
- Provide impartial advice, analysis and guidance.
What is the RICS motto?
Est modus in rebus (There is measure in all things)
Can you name some of the different professional groups in RICS?
- Quantity Surveying
- Project Management
- Building Surveying
- Facilities Management
- Dispute Resolution
Be honest, Act with Integrity, Comply with prof obligations.
Can you give me an example of when you have abided by the First Rule of Conduct?
20MSQ - Contractor claimed for less than 50% of the concrete frame in a valuation. I made sure they were paid what was rightfully due.
Maintain prof competence. Competent indviduals with necessary expertise
Can you give me an example of when you have abided by the Second Rule of Conduct?
- I complete my CPD hours.
- I supervise junior colleagues - prepared a Stage 3 cost plan and indicated the correct way to measure partitions. Took them to the side and discussed privately.
Good quality / diligent service
Can you give me an example of when you have abided by the Third Rule of Conduct?
OMERS I send commercial updates at the end of every week noting progress made and ongoing items.
Shows that i am communicating regularly and meeting deadlines. Managing client expectations.
Treat others with respect. Encourage diversity & inclusion.
Can you give me an example of when you have abided by the Fourth Rule of Conduct?
10 OBS - Inclusion – Rearranging a project dinner so that my colleague who was doing Ramadan could break their fast and join us.
Act in public interest, take responsibility, prevent harm.
Can you give me an example of when you have abided by the Fifth Rule of Conduct?
Considered the impact of any health conditions on my ability to work. Being unwell - not working that day so that I am working with a sound mind and body.
What is a bribe?
A reward offered to gain an advantage.
Commercial, contractual, regulatory or personal advantage.
What Act is in place that relates to bribery?
The Bribery Act 2010
What are the 4 offences under the Bribery Act?
o Receiving a bribe
o Giving a bribe
o Bribing a public foreign official
o The failure from a company to prevent a bribe from occurring in their organisation
What are the 6 principles of the Bribery Act?
o Proportionate procedures
o Top level commitment
o Risk assessment
o Due diligence
o Communication
o Monitoring and review
PACTT
What are the 5 principles of better regulation?
o Proportionality
o Accountability
o Consistency
o Transparency
o Targeting
What is your company’s gift register policy?
- Any gifts received or given up to the value of £250 need to be put on the gift register.
- Never to accept cash or gift vouchers.
What must all RICS firms have?
o Appropriate PI insurance
o Complaints handling procedure
o Locum for a sole practitioner
o Designation of RICS
o Must cooperate with RICS
o Must provide all info to the standards and regulatory board, upon request
Give me an example of when you have acted with honesty and integrity?
o Doing the valuation for one of my projects, the contractor submitted a claim that was for less than what they were due. The concrete frame was 50% done. I adjusted the claim accordingly so that they received what was due.
Why can’t you review the contractor’s financial information?
This is not covered by my scope of service and nor by my PI insurance.
What is PI insurance?
Insurance that covers negligent advice or work.
What are the levels of PI insurance required?
Based on a company’s turnover from last year being :
£100k or less = £250k PI
£100,001-£200k = £500k PI
£200,001 or more = £1,000,000 PI
How do you know what level of PI insurance is required?
o Based on the turnover from the year before.
o If a new firm, then estimated turnover for the year ahead.
Give me an example of when you have acted in an inclusive and respectful way?
Project dinner for 10 OBS – rearranged for when my colleague could break their fast.
What does negligence mean?
A breach of professional duty.
When was RICS founded?
1868
How many countries does RICS operate in?
146 countries
What is PI insurance?
Insurance against claims of negligent service or advice.
What is the purpose of PI insurance?
To provide financial cover in the event a client suffers financial loss due negligence. The professional is protected from financial losses.
What are the maximum levels of uninsured excess?
- £10,000,000 or less turnover last year = The greater of 2.5% of the sum insured, or £10,000
- £10,000,001 and above = No limit set
What does excess insurance mean?
Uninsured amount of a claim i.e., if a claim against a firm was successful, they would have to pay this amount.
How do you know what your required excess insurance is?
- Insurance at £500k or less = Excess of 2.5% or insured amount of £10k (whatever is more)
- Insurance at £500k or more = Excess of 2.5%
What does each and every claim mean?
Indemnity limit is applicable for each claim in the policy period.
What does in the aggregate mean?
Indemnity limit is applicable only once in the policy period.
What is run-off cover?
PII policy that comes into effect when a business stops trading, so any claims made under it relate to work carried out before trading stopped.
What is the case law about run-off cover?
Merrett v Babb
