Ethics, rules of conduct and professionalism Flashcards
What are the Rules for Members?
- Interpretation
- Communication
- Ethical Behaviour – Act with integrity and avoid conflict of interest
- Competence – Members shall carry out work with due skill and care
- Service – Carry out work in a timely manner with proper regard for standards of service
- CPD – comply with the RICS’ requirements in terms of CPD
- Solvency – Ensure personal and professional finances are managed appropriately
- Information to the RICS – submit information in a timely manner if requested
- Cooperation – cooperate fully with RICS staff and Regulatory board
What are the rules for Firms?
- Interpretation
- Communication – Communicate with the RICS
- Professional Behaviour – Act with integrity and avoid conflict of interest
- Competence – Members shall carry out work with due skill and care
- Service – Carry out work in a timely manner with proper regard for standards of service
- CPD – comply with the RICS’ requirements in terms of CPD
- Clients’ Money – Preserve the security of clients’ entrusted to its care
- Indemnity – Ensure all previous and current work is covered by PII
- Solvency – Ensure personal and professional finances are managed appropriately
- Cooperation – cooperate fully with RICS staff and Regulatory board
- Complaints Handling – Operate a CHP and maintain a log
- Information to the RICS – submit information in a timely manner if requested
- Advertising – Promote its professional services only in a truthful manner
- Arrangements to cover the incapacity or death of a sole practitioner
- Use of Designations – Must display on business literature the designation to the RICS
Which rules apply to firms and not members?
- Clients’ Money – Preserve the security of clients’ entrusted to its care
- Indemnity – Ensure all previous and current work is covered by PII
- Complaints Handling – Operate a CHP and maintain a log
- Advertising – Promote its professional services only in a truthful manner
- Arrangements to cover the incapacity or death of a sole practitioner
- Use of Designations – Must display on business literature the designation to the RICS
What is a bribe?
- A bribe is an offer or the promise of an offer of value in an attempt to induce a dishonest outcome from a particular circumstance.
- The offer, promise, giving, demanding or acceptance of an advantage as an inducement for an action that is illegal, unethical or a breach of trust.
What must a complaints handling procedure be?
- Fit for purpose – reflecting the size and structure of the business
- It must be available and understood by all staff
- It must be regularly reviewed at a senior level
- It must be agreed with PII brokers / providers – should not compromise the PII cover
On what basis is PII underwritten in the UK?
Claims Made - This is how PII is written
A claims made policy will pay out for any valid claim made during the (typically 12-month) policy period, regardless of when the incident or alleged breach of duty actually occurred.
Claims Occurring
On the other hand, your policy could be written on a ‘claims occurring’ basis – meaning it will only pay out for claims that arise out of loss or damage that actually happens during the (typically 12-month) policy period.
What is run-off cover and why is it important?
Run off cover is an insurance that is used to protect a business and its employees from financial loss even after the business ceases to trade. To ensure that firms, members and their clients are not exposed to financial detriment in the period following a firm ceasing to trade, RICS requires firms to obtain fully retroactive run-off cover.
What would you need to have in place to start your own business?
- Register with the RICS
- Complaints handling procedure
- Bank account for Clients money
- PII cover & run off cover
- Follow the RICS rules for members
- Public Liability Insurance
- Employer’s liability
- Equipment Insurance
- Building & Contents insurance
- Register with HMRC & Companies House
If a contractor offered you lunch, would you agree to go?
- I’d ensure that it wouldn’t affect my ability to act with impartiality.
- For example, if it was at a site meeting I would attend.
- Although this would be logged within our gifts & hospitality register.
What is the role of the RICS?
- Regulate – the profession
- Maintain – the highest professional and educational standards
- Promote – the profession
- Protect – clients and consumers through a strict code of ethics
- Provide – impartial advice
What if there was bid rigging? How would you act?
- Anti-competitive behaviour found in tenders.
- Similar prices within breakdown.
- Similar mistakes
- Similar wording
What are the 6 principles of the bribery act?
- Proportionality - The action taken should be proportionate to the risk and the size of the organisation.
- Top level commitment - Those in senior positions are best placed to ensure the organisation conducts business without bribery.
- Risk Assessment - Many organisations will have little or no risk of bribery but a risk assessment will show the nature or extent of exposure to bribery.
- Due Diligence - This is about having a risk based approach to business relationships - with those you deal with or who provide services for you.
- Communication - Employers will need to communicate their policies and procedures to staff and others who perform services, additional training may help raise awareness, and this would be proportionate to the size and type of organisation.
- Monitoring and Review - Risks to your organisation may change, over time you may want to carry out regular reviews and re-assessments.
How can a firm prevent money laundering?
- Follow the Money Laundering, Terrorist Financing and Transfer of Funds Regulations 2018
- Appoint a Money Laundering Reporting Officer
- Do CPD
- Do you due diligence
- Seek advice from legal/financial teams
What does RICS stand for?
Royal Institution of Chartered Surveyors
What is the RICS’ moto?
Est Modus Rebus – there is measure in all things
