Ethics, Rules of Conduct and Professionalism Flashcards
Who is the RICS President?
Justin Sullivan
When did the new Rules of Conduct take effect?
2nd February 2022
What are the 5 Rules of Conduct?
- Members and firms must be honest, act with integrity and comply with their professional obligations, including obligations to RICS.
- Members and firms must maintain their professional competence and ensure that services are provided by competent individuals who have the necessary expertise.
- Members and firms must provide good-quality and diligent service.
- Members and firms must treat others with respect and encourage diversity and inclusion.
- 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.
Give me an example behaviour for each rule of conduct
- Members and firms are open and transparent with clients about their fees and services.
- Members and firms only undertake work that they have the knowledge, skills and resources to carry out competently.
- Members and firms understand clients’ needs and objectives before accepting any professional work.
- Members and firms respect the rights of others and treat others with courtesy.
- Members and firms respond to complaints made against them promptly, openly and professionally.
What is a conflict of interest?
A conflict of interest arises in a situation where there may be an actual, perceived or potential risk that the professional judgement of an RICS-regulated firm or member will
be compromised when undertaking an assignment.
OR
A conflict of interest arises when a member or firm’s independence and impartiality is threatened due to the existence of a conflict between two clients.
What are the 3 types of conflict of interest?
- Party conflict - a situation in which the duty 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.
- Own interest conflict - a situation in which the duty to act in the interests of a client in a professional assignment conflicts with the interests of that same RICS member/firm.
- Confidential information conflict - a conflict between the duty of an RICS member to provide material information to one client, and the duty of that RICS member to another client to keep that same information confidential.
How would you identify a conflict of interest?
When taking on instructions for new work, asking all employees to declare whether they have a Conflict of Interest
What is Informed Consent?
Consent given willingly by a party who may be affected by
a Conflict of Interest.
The party must confirm they understand:
- There is a Conflict of Interest or a significant risk of a Conflict of Interest and
- The facts known by the RICS member that are material to the Conflict of Interest and
- What that Conflict of Interest is or may be and
- That a Conflict of Interest may affect the ability of the RICS member to advise or act fully in the interests of a client
What should you do if you identify a Conflict of Interest?
Members must not advise or represent a client where there is a Conflict or significant risk of one without Informed Consent (unless doing so would break the law).
Why must firms have professional indemnity insurance?
To:
- ensure that if the firm faces a claim, it is protected from financial loss that it cannot meet from its own resources
- protect the insured member or firm against the consequences of its liability to pay damages to third parties for breaches of professional duty that it commits through its professional activities and
- ensure that the firm’s clients do not suffer financial loss, which the firm cannot meet.
Firms will adopt different ways of meeting these aims according to their size, the risks attached to the type of work they carry out and their resources.
What is professional indemnity insurance?
Professional Indemnity Insurance (PII) offers comprehensive coverage that safeguards your business against claims of negligence, errors, or omissions in the services you provide.
What is your firm’s PII limit?
£1million
What determines the level of PII cover needed for a firm?
It is based on the firm’s turnover in the preceding year:
Turnover of £100,000 or less = £250,000 min level of indemnity
Turnover of £100,001 to £200,000 = £500,000 min level of indemnity
Turnover of £200,001 and above = £1million min level of indemnity
What is the procedure for setting up a new RICS regulated firm?
Must be providing surveying services to the public and at least 25% of the Firm’s Principals must be RICS members
How do PII policies work?
PII policies work on a ‘claims made’ basis. This means that the policy covers claims that are first made against the insured during the period of insurance regardless of when the negligent act occurred.
PII cover should include all past and present employees
This includes all past and present partners, directors, members and employees. This protects your firm for the work that has been carried out in its name and also those who leave the firm.
What is the structure of the RICS?
What should be included in Terms of Engagement?
What is your firm’s complaint’s handling procedure?
- If you have initially made your complaint verbally, please also make it in writing, including as much detail as possible.
- Once we receive your complaint in writing, we will acknowledge receipt within 3 working days.
- We will investigate your complaint, this will normally be dealt with by the office manager, who will speak with
the members of staff who dealt with you. A written outcome of our investigation will be sent to you within 15 working days of the original complaint. - If, at this stage you are still not satisfied, you should contact us again and we will arrange for a separate review
to take place by a senior member of staff. We will write to you within 15 working days of receiving your request for a review, confirming our final viewpoint on the matter.
What is the role of the RICS?
Protect consumers and businesses and to promote the usefulness of the profession for the public good
What is a Bye-Law?
RICS Bye-laws provide power to the Head of Regulation and Regulatory Tribunal to make disciplinary and regulatory decisions including disciplinary penalties and costs. Decisions are made in line with the Rules/Guidance set by the Standards and Regulation Board
Give an example of an RICS Bye-Law
- Procedure for Annual General Meeting
- Composition of the governing council, officers & staff
- Contribution to funds (i.e. subscriptions)
- Membership & Registration (i.e. registration of firms
What Money Laundering regulations are you aware of?
The Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017
Criminal Finances Act 2017
What would you do if you suspected money laundering?
