Ethics, Rules of Conduct & Professional Practice Flashcards
Created Sept 2024
Why does the RICS have Rules of Conduct?
- To provide a framework that we can all work to and so the client knows he is getting a set level of service.
- As well as being an important tool for the Institution, the Rules of Conduct are also a useful professional guide for individual institution members
The Rules of Conduct (2021) changes what?
- The Rules of Conduct October 2021 Global Practice Statement will overhaul the previous separate documents:
- Rules of conduct for Members.
- Rules of Conduct for Firms.
- Global Professional and Ethical Standards.
- Appendix A of the Rules of Conduct now contains the professional obligations of Members and Firms.
What are the New 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 are the professional obligations of members?
- Members must comply with the CPD requirements set by the RICS which requires 20 hours of CPD for each calendar year, 10 hours of which must be formal CPD.
- 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 insurances would you need if you were starting up your own
firm?
- Professional Indemnity Insurance (including Run-off cover)
- Employer’s Liability.
- Public Liability.
- Building’s insurance of an office premises.
What are the requirements regarding Professional Indemnity
Insurance set by the RICS?
- The policy cover must be made on an ‘each and every’ claim basis.
- The RICS sets out the minimum levels of indemnity.
- The RICS sets out the maximum levels of uninsured excess.
- Run off cover must be in place for at least 6 years.
- The policy should include cover for past and present employees, directors and partners.
What are the minimum levels of indemnity (PII)
Firms turnover in the preceding year £100,000 or less - minimum limit of indemnity is £250,000.
Firms turnover in the preceding year £100,001 to £200,000 - minimum limit of indemnity is £500,000.
Firms turnover in the preceding year £200,001 or more- min limit of indemnity is £1,000,000
What is RICS Motto?
‘Est Modus in Rebus’, meaning ‘there is measure in all things’
Who is the RICS president (as at Sept 2024)
Tina Paillet FRICS
When was RICS founded?
1868
When was RICS granted Royal Charter?
1881
Setting up in practice, what are the professional obligations of firms
- must publish a complaints handling procedure which includes ADR provider approved by RICS, and maintain a complaints log.
- ensure previous and current professional work is covered by adequate and appropriate PII cover that meets RICS standards
- firms with a sole principle must make appoint a locum in case of incapacity, death, absence etc.
- firms must cooperate with RICS and provide any info reasonably requested by the SRB
- must display on business literature designation to denote they are regulated by RICS.
RICS regulated firms that handle clients money must…
*appoint a principal to oversee client money accounting functions
*principles cannot override controls
*accounting systems and data must be secure
*competent/knowledgeable staff to process clients’ money
*client money must be kept separate and clearly identifiable with the word ‘client’ included in the bank account name
*clients must always have access to funds
*must maintain client ledgers and provide a running balance
