Ethics, Rules of Conduct and Professionalism - L3 Flashcards
1
Q
What is Rule 1?
A
Members and Firms must be honest, act with integrity and comply with their professional obligations, including obligations to the RICS.
2
Q
What is Rule 2?
A
Members and firms must maintain their professional competence and ensure that services are provided by competent individuals who have the necessary expertise.
3
Q
What is Rule 3?
A
Members and firms must provide good-quality and diligent service.
4
Q
What is Rule 4?
A
Members and firms must treat others with respect and encourage diversity and inclusion.
5
Q
What is Rule 5?
A
Members and firms must act in the public interest, take responsibility for their action and act to prevent harm and maintain public confidence in the profession.
6
Q
What does DEI stand for?
A
Diversity, Equality, and Inclusion
7
Q
What rule is this?
Members and firms must be honest, act with integrity and comply with their professional obligations to RICS.
A
Rule 1
8
Q
What rule is this?
Members and firms must treat others with respect and encourage diversity and inclusion.
A
Rule 4
9
Q
What rule is the following?
Members and firms must maintain their professional competence and ensure that services are provided by competent individuals who have the necessary expertise
A
Rule 2
10
Q
What rule is this?
Members and firms must act in the public interest, take responsibility for their action and act to prevent harm and maintain public confidence in the profession.
A
Rule 5
11
Q
What rule is this?
Members and firms must provide good-quality and diligent service.
A
Rule 3
12
Q
What did the Rules of Conduct replace?
A
Rules of Conduct for Members
Rules of Conduct for Firms
Global Professional and Ethical Standards
13
Q
When did the Rules of Conduct come into effect?
A
2nd February 2022
14
Q
Give an example where you have complied with rule 1.
A
On Welbeck, the contractor had undervalued the works completed. In particular, more rooms had floor finishes installed than claimed for. I added this into the valuation.
On Edenica, I declined a dinner invite with the subcontractor the night before I was due to visit their factory to inspect materials to be vested.
On One Kingdom Street, during the tender process, a tendering contractor asked for the clients budget which I refused to share.
15
Q
Give an example where you have complied with rule 2.
A
Generally, I stay on top of what is happening in the market in my sector and keep up to date with CPD logs.
16
Q
Give an example where you have complied with rule 3.
A
When preparing to meet with a client to run through the tender opening log, I did some additional analysis into the tenders received.
17
Q
Give an example where you have complied with rule 4.
A
I make sure to help junior members of staff when needed. I also ensure to encourage DEI by actively speaking up when I see inequality.
18
Q
Give an example where you have complied with rule 5.
A
19
Q
What are the core professional obligations for members and firms detailed in the Rules of Conduct?
A
The Rules of Conduct are based on ethical principles of:
- Honesty
- Integrity
- Competence
- Service
- Respect
- Responsibility
20
Q
As a qualified member of the RICS you are able to set up your own firm; what procedures do the RICS require you to do?
A
Provide the information as prescribed by the Standards and Regulation board which is:
Agree that RICS can share relevant information about the firm with government or other regulatory bodies as appropriate
21
Q
What is the criteria for whether or not a firm needs to register with the RICS?
A
A firm must register if:
it provides surveying services to the public
it operates in regulated area A
at least 50% of the firm’s principals are RICS members
22
Q
What is the criteria for if a firm is eligible to register with the RICS?
A
A firm is eligible if:
a. They provide surveying services to the public
b. At least 25% of the firms principal’s are RICS members
A firm may also be eligible is the Head of Regulation is satisfied they are implementing a plan to secure compliance with 4a.
23
Q
What can and can’t the RICS regulate in terms of complaints?
A
They can only accept complaints about firms or individuals regulated by RICS, additionally the complaint has to be about advice given
24
Q
You have put in a fee bid to a client; they contact you and say that another practice has quoted a lower price. What do you do?
A
The RICS stipulates that once we have submitted a fee we are expected to stand by it. You can’t alter the price but you can alter the scope of works.
25
What must you do if a conflict of interest exists?
Advise my company by following the internal procedures and seek informed consent.`
26
What is Informed Consent?
Informed consent is given when a conflict of interest has been declared, and the RICS or firm believes that to proceed is in the best interest of everyone involved, isn’t against the law, and won’t stop the member or firm from offering competent and careful advice.
27
What are the main benefits for a client of employing a chartered surveyor?
They can be assured that they will be getting a high level of service as the surveyor operates in accordance with the RICS guidance.
28
What are the offences under the Bribery Act 2010?
Making a bribe
Receiving a bribe
Bribery of a foreign public official
Failure of a corporate entity to prevent bribery on its behalf
29
What are the penalties of a bribery offence?
An unlimited fine and/or imprisonment for up to 10 years.
30
Why was the Bribery Act introduced? Does it apply when you are working out of the UK?
It was introduced in 2011. Yes, it does apply when working outside of the UK, and it was introduced to strengthen the laws around bribery and corruption.
31
Can you give me an example where you have offered a high standard of service?
Going above and beyond the clients expectations when managing a post tender period where we were supposed to meet to discuss the initial tender opening log and I had prepared a more in-depth tender comparison of the figures and clarifications for review.
32
What is the RICS CPD policy?
Members, 20 hours CPD by 31st December, or which 10 need to be formal. Additionally, 3 hours of ethical training every three years.
33
What does RICS stand for?
The Royal Institution of Chartered Surveyors
34
Who is the current president of the RICS?
Justin Sullivan is the current President however Nicholas Maclean is the current Acting President.
35
Name some of the different RICS faculties that exist?
Dispute Resolution
Commercial Property
Environment and Resources; and
Building Control
36
Where is the RICS based?
12 Great George Street, London, SW1P 3AD
37
When must APC candidates complete the RICS ethics module?
Within the 12 months before final assessment
38
Why does RICS publish guidance notes, and do Chartered Surveyors have to follow them?
They provide them to take away professional ambiguity and it brings consistency to the profession. You should follow them as they set the bar for whether you have done something wrong or not. If you do not adhere to them, there should be a reason.
39
What is the ‘Black Book’?
A collection of technical practise documents covering all processes throughout the construction project life cycle.
40
Are you aware of any regulation in association with the use of the RICS logo by regulated firms and Chartered professional?
The RICS logo is a registered trademark and shouldn’t be used without permission. The RICS rules of conduct require firms to display on their business literature ‘in accordance with RICS’
41
What must firms do in respect of Professional Indemnity cover?
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
42
What does PII stand for?
Professional Indemnity Insurance
43
What is the purpose of having PII?
44
What standards does the RICS require that a PII policy should meet?
- An ‘each and every’ claim basis or aggregate plus unlimited round the clock reinstatement basis
- RICS minimum policy wording, as a minimum ensure the policy wording is written on a full civil liability basis
- Minimum level of cover is based on the firm’s turnover in the previous year (or estimated turnover for a new firm)
- Fully retroactive
45
What is the minimum level of indemnity for RICS based on a turnover of £100,000 or less?
£250,000
46
What is the minimum level of indemnity for RICS based on a turnover of £100,001 to £200,000?
£500,000
47
What is the minimum level of indemnity for RICS based on a turnover of £200,001 and above?
£1,000,000
48
What does an ‘each and every’ claim basis mean?
Each individual claim has it’s own limit of indemnity. However, multiple claims arising from the same cause will be treated as a single claim.
49
What does aggregate plus unlimited round the clock reinstatement basis mean?
The limit of indemnity is the maximum available in any one policy irrespective of how many claims are made, however, once the full limit has been eroded the limit is reinstated without limit.
50
What is the maximum level of uninsured excess when then limit of indemnity is £10,000,000 or less?
The greater of 2.5% of the sum insured or £10,000.00
51
What is the maximum level of uninsured excess when then limit of indemnity is over £10,000,001 and above?
No set limit
52
What insurances are required when setting up your own firm?
· Professional indemnity insurance
· Employer’s liability insurance
· Public liability insurance
· Building’s insurance of an office premises
53
What does ‘claims made basis’ mean?
The insurance policy that is in place at the time the breach is discovered is responsible for providing the indemnity, not the insurance policy in place when the breach was made
54
How does the RICS communicate with Firms? (5)
Email
Post
Fax
Phone
In person
55
When is a firm required to register with the RICS?
It provides surveying services to the public
It operates in Regulated Area A
At least 50% of the firms principals are RICS members
56
When is a firm eligible to register with the RICS?
a. They provide surveying services to the public; and
b. At least 25% of their principals are RICS members
Also, a firm may be eligible if they are meeting the requirements of (a) and the ‘head of regulation’ is satisfied that they’re implementing an appropriate plan to comply with (b).
OR the ‘head of regulation’ is satisfied they are supported and supervised by another RICS-registered firm or firms that fulfil both requirements (a, and b)
57
What must be included in an application for regulation by the RICS? (3)
a. Provide information as required by the Standards and Regulation Board
b. Agree that the RICS may share relevant information about the firm with government or other regulatory bodies
c. Agree that if the RICS declines to register the firm, they (the RICS) may publish its decision
58
Upon receipt of an application, how many the Head of Regulation respond? (3)
a. Grant permission
b. Grant registration subject to conditions; or
c. Refuse registration
59
What is a ‘Responsible Principal’?
Someone appointed in a registered firm, who is responsible for ensuring the firm complies with the RICS professional, technical, and ethical standards
60
Someone can only be appointed as Responsible Principal if they meet three conditions.
What is condition A?
The Head of Regulation is satisfied that the person is appropriate to hold that appointment
61
Someone can only be appointed as Responsible Principal if they meet three conditions.
What is condition B?
The Head of Regulation is satisfied that either:
the person is able to exercise executive leadership to influence strategic objectives of, and significant decisions made by the firms; OR
the person reports directly to someone who is so able and can demonstrate they have been given authority by the firm to fulfil the role of Responsible Principal.
62
Someone can only be appointed as Responsible Principal if they meet three conditions.
What is condition C?
Either:
- The person is an RICS member; OR
- They are not an RICS member BUT the Head of Regulation is satisfied that:
- It is impractical for the firm to appoint an RICS member; AND
- The person selected has sufficient experience in and understanding of regulatory compliance to carry out the role of Responsible Principal
63
What are four key steps the Responsible Principal must take to ensure the firm complies with the RICS?
a. ensure the firm has implemented policies, and systems to ensure compliance with all RICS standards, and other requirements of RICS registration the firms and is able to demonstrate evidence to the RICS if necessary.
b. ensure the firm has implemented policies, and systems to ensure compliance with legal obligations and is able to demonstrate evidence to the RICS if necessary.
c. Ensuring all information provided to the RICS is truthful and any material changes in circumstances are reported to the RICS
d. Ensuring there are processes and systems in place to record any failure to comply with RICS requirements or statutory obligations and make this available to the RICS.
64
What constitutes a ‘material change’? (7)
significant change of:
- Principals (whether or not RICS-qualified)
- Non-principal employees (RICS-qualified only)
- Contact details for firms and offices
AND
- When a firm commences or ceases to hold clients’ money
- When a firm commences or ceases to provide general insurance distribution work
- A material breach of the firms regulatory and statutory obligations
- Any other matter that a reasonable professional would consider relevant to the work of a professional body.
65
What are the obligations of a firm registered with the RICS? (5)
a. comply with rules of conduct and obligations of registered firms
b. comply with obligations set out in ‘RICS’ Royal Charter and Bye-Laws’
c. inform the Head of Regulation of any finding against the firm by any disciplinary or regulatory body
d. inform the Head of Regulation of any finding of insolvency against the firm
c. notify the Head of Regulation withing 7 days if there is a material change regarding the firm and provide details
66
In addition to the obligations, the registered firm must inform the Head of Regulation if the firm operating the Regulated Practice Division is subject to ? (3)
a. dishonesty or fraud
b. serious professional misconduct by the profession body that results in the firm being suspended or expelled from membership
c. any matter likely to cause reputational harm to the firm or RICS.
67
Under what circumstances might the Head of Regulation exercise disciplinary powers?
- They consider that the firm would not be eligible to register for regulation by the RICS at any given time
- They consider that the firm has contravened any obligation of the registration
- They receive any notification that a firm is subject to disciplinary procedures by any regulatory body, or fraud, misconduct, or anything likely to cause reputation harm to the RICS.
68
What can the Head of Regulation do if they do not believe the firm is complying with their obligations under the RICS? (4)
- Take no action
- Add or vary conditions to the firms registration
- Deregister the firm
- Suspend the firm
69
What are the ways a firm can be deregistered?
- The Head of Regulation will deregister the firm
- They submit an application for deregistration
70
What are the reasons that the Head of Regulation might refuse to deregister a firm?
- The firm is required to register for regulation
- The firm is subject of an investigation under the provisions of Bye-Law 5
- The Head of Regulation believes the firm may have breached the Rules of Conduct
- The firm has unpaid fees and/or fines
71
What is Bye-Law 5?
Related to the conduct of members and firms
72
What are the RICS Bye-Laws?
They give the Head of Regulation and the Regulatory Tribunal power to make disciplinary and regulatory decisions, including imposing costs and penalties.
73
Who creates the RICS Bye-Laws?
The Standards and Regulation Board
74
What does the firm have rights to do if they disagree with the decision undertaken by the Head of Regulation?
Apply for review by the Registration Panel of the Regulatory Tribunal of any decision made by the Head of Regulation within 28 days of the decision.
Any review shall we a fresh review and the powers are the same as those available to the Head of Regulation.
75
Can a firm appeal a decision made by the Registration Panel?
Yes, in accordance with the provisions of the Regulatory Tribunal Rules.
76
Can a firm reapply to the RICS after being removed as a result of disciplinary action?
Yes, however they may not reapply for a period determined by the disciplinary panel and they must have their application considered by a Regulation Panel in accordance with the procedures set out in the Regulatory Tribunal Rules
77
What is Regulated Area B?
All areas other than the United Kingdom
78
What is Regulated Area A
United Kingdom
79
What is a Royal Charter?
A document defining an organisations constitution, and powers. It’s issued by the monarch on the advice of the Privy Council.
80
What is the Privy Council?
A group of advisors to the monarch.
Its members are mainly senior politicians who are current or former members of either the House of Commons or the House of Lords.
81
How many professional groups are there and can you name them.
17:
Building Control
Building Surveying
Commercial Property
Dispute Resolution
Environment and Resources
Facilities Management
Geomatics
Machinery and Business Assets
Management Consultancy
Minerals and Waste Management
Planning and Development
Personal Property/Arts and Antiques
Project Management
Quantity Surveying and Construction
Residential Property
Rural
Valuation
82
What does fully retroactive mean?
The policy in place at the time when a claim is made covers the claim, regardless of when the negligent act occurred.
83
What is run-off cover?
A type of insurance that protects against claims made after a business or individual has stopped trading.
84
What is a run-off pool?
For firms that are unable to obtain run-off from the market, they can apply for similar coverage to the run-off pool.
85
What are the four types of bribe?
Bribing another person
Bring bribed
Bribing a foreign official
Failure of a company to prevent bribery
86
What is the legal act that refers to bribery?
The Bribery Act 2010
87
What does the Bribery Act 2010 say about companies?
It makes companies criminally liable for bribery within their company UNLESS they can show they had adequate procedures in place to prevent it.
88
What does MLR 2017 stand for?
Money Laundering Regulations 2017
89
What are the Money Laundering Regulations 2017?
Sets out obligations of private sectors working in areas of higher money laundering risk and aims to stop criminals using professional services to launder money.
90
What is money laundering?
The act of concealing the origins of illegally obtained money.
91
What does the Arcadis gifts and hospitality policy say you should consider when you receive an offer of gifts or hospitality?
The test to be applied is whether in all the circumstances the gift or hospitality is reasonable, justifiable and does not place the receiver under any obligation
92
What is the Arcadis gifts and hospitality policy?
- You may accept personal gifts to a value of £100 up to twice a year.
- If invited to an event, the business inviting you must be in attendance and is subject to a cap of £100 per person per event, maximum two events a year.
- When offering hospitality, limited to £100 (incl. service and VAT)
- ALL gifts and invitations to events must be logged on the gift and hospitality register
- Never accept cash
- Anything offered on the basis of receiving something in return cannot be accepted
93
What does the Arcadis gifts and hospitality policy say are unacceptable gifts?
Cash
Anything illegal
Offers to family or friends of Arcadians
94
What are the professional obligations of members of the RICS? (3)
- Must comply with CPD requirements
- Must cooperate with the RICS
- Must promptly provide all information reasonably requested by the Standards and Regulation Board
95
What are the professional obligations of firms of the RICS? (7)
- Complaints handling procedure.
- Cooperate with the RICS
- Locum in place if sole practitioner
- Ensure all previous and current works is covered by adequate PII
- Must promptly provide all information reasonably requested by the Standards and Regulation Board
- Display ‘regulated by the RICS’ on business literature
- Must report to RICS any matter they are permitted to under the ‘Rules for Registration for Firms’
96
What does a firms complaints handling procedure need to have?
Must include an alternative dispute resolution provider approved by the RICS and maintain a complaints log.
97
Under the ‘Rules for Registration for Firms’ what matters must firms report to the RICS? (5)
- Disciplinary or regulatory findings
- Insolvency
- Material changes (within seven days)
- Dishonesty or fraud
- Serious professional misconduct.
98
What is the RICS?
A globally recognized professional body that represents individuals working in land, property, infrastructure, and construction.
99
What are the three types of conflict of interest?
- Party
- Own Interest
- Confidential Information
100
What is a Party conflict of interest?
When a firm or member is acting or clients with conflicting interests e.g. competing supermarkets.
101
What is an Own Conflict conflict of interest?
When the duty to act in the interests of a client, conflicts with the interests of the RICS member or firm. e.g. personal relationships with an estimator
102
What is a Confidential conflict of interest?
A conflict between the duty to provide information to one client, and the duty to another client to keep that information confidential.
103
What is a conflict of interest?
Where there may be an actual, or perceived risk that the judgement of someone will be compromised when undertaking a task.
104
Why is it important to correctly identify conflicts of interest?
- Demonstrated professionalism
- Creates trust
- Gives clients confidence
105
Give me an example of a conflict of interest you’ve had.
106
What are some examples of the RICS professional standards?
Surveying Safely
Guidance note on Asbestos
Handling Clients Money
107
What are the five ethical principles of the RICS?
RAPIT
- Respect
- Accountability
- Professionalism
- Integrity
- Trust
108
What is a professional standard?
They set requirements or expectations for RICS members and regulated firms.
109
What is practice information?
Guidance to support surveyors in delivering specific services or working in specific areas of practice.
110
What does the ‘client money handling’ professional standard say about holding Clients’ money?
1. Segregations, the clients money must be held separately from the firm’s own money and have the client’s name on it.
2. Transparency, the client must have a running total and access to the account.
3. Protection, funds should be safeguarded.
4. Legal Compliance, comply with all legal and regulatory requirements
111
How can you recognise money laundering?
- Irregular movement of cash
- Use of cash
- Unexpected early payment e.g. mortgage`
112
What are the obligations of an employer under the bribery act 2010?
- Anti-bribery policy
- Training for staff
112
Why do you need run off cover?
So that Clients can be compensated for claims made after a firm has closed.
113
How can you prevent PI claims?
- Record keeping
- Only advise on things we are supposed to
- Good communication
- Good management
114
What do you need in order to set up a practice?
ORCA PRUL
- Obtain RICS start-up policy pack
- Register with RICS
- Appoint RICS contact officer
- Complaints handling procedure
- PII
- Rules of conduct for firms
- Use the ‘regulated by RICS’ on all material
- Locum
115
What do you include in annual RICS returns?
PST NCM
- PI details
- Staffing
- Training provisions
- Nature of clients
- Complaints handling procedure
- If holding clients money
116
How can you spot collusion?
- Wide variation of bids with no obvious reason
- When contractors are around % less than one another
117
What is collusion?
A form of anti-competitive behaviour where contracts or suppliers collude to manipulate the bidding process in order to increase the chances of winning the contract
118
When was the RICS founded?
1868
119
Where is the RICS based?
12 Great George Street in London
120
What are the 6 principles of the bribery act?
- Proportionate Procedures
- Top-Level Commitment
- Risk Assessment
- Due Diligence
- Communication (including training)
- Monitoring and Review.
121
What’s included in an appointment document?
- Payment schedule
- Scope of Services
- PI
- Limitation of liability
122
What behaviours are associated with Rule 1?
- Conflicts of interest
- Keeping client money safe
- Not misleading others by my actions or omissions
- Not facilitating financial crime
- Gifts and hospitality
- Protect confidential information
- Bribery
123
What behaviours are associated with Rule 2?
- CPD requirements
- Reflect and lessons learnt
- Comply with relevant legislation
- Only undertake work I have the skills to do
124
What behaviours are associated with Rule 3?
- Agree scope of services and fees
- Understand client objectives prior to accepting work
- Work in a timely manner
- Provide clients with material information on what the advice is based on
125
What behaviours are associated with Rule 4?
- Equality Act 2010
- Develop an inclusive environment
- Do not discriminate on any improper grounds
- Check supply chains don’t involve modern slavery (you can use a tool like the government’s Modern Slavery Assessment Tool (MSAT))
126
What behaviours are associated with Rule 5?
- Complaints handling procedures
- Ensure any public statements do not undermine confidence in the profession
- Questions practices I don’t think are okay
- Take action when I think rules have been breached and report suspected significant breaches of the Rules of Conduct to the RICS.
127
What rules are relevant to the use of social media?
Rule 1
Rule 4
Rule 5
128
What does the RICS say about using social media?
Standards expected of RICS members don’t change because they are communicating through social media.
‘Use of social media guidance for RICS members’
129
RICS have introduced two new definitions for professional guidance, what are they called?
- Professional Standards and Practice Information
- These definitions are being rolled out on all new RICS guidance being published, or in some cases existing guidance is being reissued using the new definitions.
130
