Ethics, rules of conduct and professionalism (Level 3) Flashcards
What is the Royal Charter?
- Awarded by Queen Victoria 1881 and requires the RICS to maintain the usefulness of the profession for the public advantage
What is the RICS motto?
Est Modus in Rebus - There is measure in all things.
What is the role of the RICS?
To regulate and promote the profession.
What is LionHeart?
An RICS charity to provide advice and support to members in need.
How does the RICS ensure improved quality standards?
Through the Rules of Conduct.
What are the RICS 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 firm must act in the public interest, take responsibility for their actions and act to prevent harm and maintain public confidence in the profession.
What are the professional obligations to RICS for members?
- Members must comply with the CPD requirements set by RICS.
- Members must cooperate with RICS.
- Members must promptly provide all information reasonably requested by the Standards and Regulation Board, or those exercising delegated authority on its behalf.
What are the professional obligations to RICS for firms?
- Firms must publish a complaints-handling procedure, which includes an alternative dispute resolution provider approved by RICS, and maintain a complaints log.
- Firms must ensure that all previous and current professional work is covered by adequate and appropriate PI cover that meets the standards approved by RICS.
- Firms with a sole principle must make appropriate arrangements for their professional work to continue in the event of their incapacity, death, absence from or inability to work.
- Firms must cooperate with RICS.
- Firms must promptly provide all information reasonably requested by the Standards and Regulation Board, or those exercising delegated authority on its behalf.
- Firms must display on their business literature, in accordance with RICS’ published policy on designations, a designation to denote they are regulated by RICS.
- Firms must report to RICS any matter that they are required to report under the Rules for the Registration of Firms.
When is a Firm required to register for regulation by RICS?
A Firm is required to register for regulation by RICS if:
a - the Firm provides surveying services to the public
b - the Firm is operating in Regulated Area A
c - at least 50% of the Firm’s Principals are RICS Members
RICS Members who a Principals of a Firm required to register must take all reasonable steps in their power to ensure an appropriate application to register is made.
When is a Firm eligible to register for regulation by RICS?
A Firm is eligible to register for regulation by RICS if:
a - the Firm provides services to the public and
b - at least 25% of the Firm’s Principals are RICS Members
What would you do if you were offered a gift?
- consider who is giving the gift
- nature of the gift
- timing of the gift
- make a record of the gift and what action was taken
My Firm’s policy states that as a general rule, employees can accept or give:
- Unsolicited gifts up to the value of £100 per person
- Unsolicited invitations to business events, including hospitality provided which do not exceeed £100 per person in value
- must not be cash or cash equivalent (e.g. vouchers)
- must not violate any applicable laws or regulations
- should not offer or accept overnight accommodation or travel
- must be one off or occasional offerings
- must not be in a manner that could be construed as being an inducement
What is the Bribery Act and its main principles.
Bribery Act 2010 covers criminal law relating to bribery. It places obligations on companies to prevent bribery offences in their operations
6 principles are:
- Proportionality
- Top level commitment
- Risk assessment
- Due diligence
- Communication
- Monitoring and review
What are the four offences of bribery?
- Bribing another person
- Bribing a public official
- Allowing yourself to be bribed
- Failure as a business to prevent bribery
What is the minimum level of cover required under PI insurance for a firm?
According to RICS Requirements for Professional Indemnity Insurance (2019); the minimum PI is based on the firm’s turnover from the previous year:
up to £100k = £250k cover
£100k-£200k = £500k cover
above £200k = £1m cover
Must be fully retroactive.
What is run off cover?
Run-off cover covers a firm following the period where they cease to trade in the event a company is closed down and a claim is made against them. RICS requires firms to have a minimum of 6 years of run-off cover.
What is CPD?
Continuing Professional Development - continuously learning and updating professional knowledge in order to remain competent.
What are the CPD requirements for RICS?
20 hours for members of which 10 hours is formal.
48 hours for APC candidates of which 24 hours is formal
What are the RICS principles of better regulation?
- Proportionality
- Accountability
- Consistency
- Targeting
- Transparency
What is the RICS governance structure?
Currently undergoing some changes. But:
1. Privy Council (Approves Decisions)
2. Governing Council (Makes Decisions)
3. Standards and Regulation Board
4. RICS Board (formerly Management Board)
5. Audit, Risk Assurance and Finance Committee
6. Nominations and Renumerations Committee
7. Global Members Committee (New - Since Bichard Review)
8. Knowledge and Practice Committee (New - Since Bichard Review)
What is RICS Matrics?
A community designed to support new members joining the profession in the first 10 years of their profession
What are RICS Professional Standards?
Professional Standards (PS) are mandatory documents RICS members must follow.
- Professional Standards 1 – Compliance with standards and practice statements where a written valuation is provided.
- Professional Standards 2 – Ethics, Competency, Objectivity, Disclosures.
What are RICS Guidance Notes?
Guidance documents on specific areas of practice that promote best practice.
Can you provide an example where you have acted with integrity?
I was instructed to value a trading care home.
When i produced my opinion of FMT/FMOP, I applied a multiple to this to arrive at MV.
When i gave my draft valuation to my client, they expressed that they were unhappy with the valuation, claiming the multiple was too low, which was driving the overall value down.
I conducted further researched and reviewed my applied multiple.
After conducting further research, i concluded that my methodology was sound and the multiple and MV would be unmoved. I respectfully relayed this to my client.
Is there anything you use to make an ethical decision?
Follow the RICS’ ethical decision tree.
What is a locum?
Someone who is able to cover in the event a professional is unable to work i.e. a Sole Principle.
What insurance is required for a RICS firm?
PI
Building insurance
Employers Liability
Public Liability
How do you keep up to date with topical issues within the industry?
- Relevant CPD
- Newsletters
- Knowledge share sessions
- RICS APC
Are you aware of the sanctions for non-compliance of CPD?
1 year - fixed penalty caution
2nd within 10 years - fixed penalty caution, published name on website
3rd within 10 years - disciplinary panel, possible explusion
What steps would you need to take to set up your own firm?
- Inform RICS of new practice through a Firm Detail Form
- Appoint a Responsible Principal for all RICS communication
- Register with RICS for regulation of firm
- Arrange professional indemnity and send details to RICS
- Set up procedures for Client Money Handling and appoint a Complaints Handling Officer
- Disclose business name
- Appoint a Money Laundering Reporting Officer
- Register for data protection
- Adhere to disability discrimination compliance.
How would you set up a clients money account?
- Must be kept in a designated client account and clearly identifiable
- The account should have the client in the title and the firms name or identifier if a discreet account
- Interest must be agreed with the client
- Maintain a ledge on the running balance of any transactions
- Agree terms and advise client on details
- Must never be overdrawn
What are the associated maximum levels of uninsured excess?
If firm’s turnover is up to £10m, the uninsured excess is the greater of 2.5% of the sum insured or £10,000.
If firm’s turnover is over £10m, there is no set limit for the uninsured excess.
What are the requirements for PII under RICS regulation?
- Fully retroactive
- Cover past projects and people
- Each and every claim basis
- Has run-off cover
- Underwritten by an RICS listed insurer
What happens if a claim against a firm is greater than the PI cover?
The company is liable for the additional monies and assets and the like can be used to pay this off. Limit of liability can mitigate this.
What is a ‘Limit of Liability’ clause?
Limits the amount one party has to pay the other if they suffer a loss because of a contract between them.
What would you do if a client withholds money from a contractor?
- Advise them to pay as they are breaching contract.
- Raise this internally as it may result in a dispute and notify the RICS.
What is Professional Indemnity Insurance?
Insurance which covers individuals, companies and clients from costs that may arise from a claim due to negligence, errors or omissions while providing a professional service.
What is the RICS Black Book?
A set of best practice standards and guidance notes for QS professionals.
Can you name some of the documents within the Black Book?
- Retention
- Extensions of Time
- Valuing Change
- e-tendering
- Cost Reporting
- Final Account procedures
Who is the president of RICS?
Justin Sullivan
What is a conflict of interest?
A situation where a member or firm’s professional judgment, objectivity and impartiality could be compromised.
What is ethics?
Ethics is the study of moral right and wrong in human character and behaviour.
Are you aware of any ethical theories?
- Deontology (right and wrong based on rules)
- Consequentilism (right and wrong based on consequences)
What are the RICS Rules of Conduct?
- Rule 1. Members and firms must be honest, act with integrity and comply with their professional obligations, including obligations to 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 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.
What did you learn from the ethics module?
- What ethics is
- How ethical decisions are not black and white and something being legally acceptable does not make it ethically correct
- How to apply the rules of conduct
- Different types of conflict of interest
What is CBRE’s Complaints Handling Procedure
- Will receive a response to find out who is overseeing complaint within 5 working days
- Complaint will be resolved, finalised and concluded within 20 working days (25 days total)
- If unhappy with “Final Management Decision Letter” or if the complaint is left incomplete/unconcluded, you can use:
i) “The Property Redress Scheme” for Residential & Commercial,
or
ii)”The Centre for Effective Dispute Resolution” for Commercial and Business to Business.
How does CBRE’s CHP policy differ from RICS Requirements
RICS state 7 days to assign the overseer, and 21 days to complete the ticket (28 days). CBRE state 5 and 20 (25 days).
