Ethics, Rules of Conduct & Professionalism Level 1 Flashcards
What are the RICS Rules of Conduct?
- Members & firms must be honest, act with integrity & comply with their professional obligations, including obligations to RICS
- Members & firms must maintain their professional competence & ensure that services are provided by competent individuals who have the necessary expertise
- Members & firms must provide good-quality & diligent service.
- Members & firms must treat others with respect & encourage diversity & inclusion
- Members & firms must act in public interest, take responsibility for their actions & act to prevent harm & maintain public confidence
What does Appendix A in the RICS Rules of Conduct encompass?
Professional obligations to the RICS for members & firms
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What are the RICS ethical standards?
Honesty
Integrity
Competence
Service
Respect
Responsibility
What are the types of RICS Professional Standards & what are their status?
- International Standards: An international high level principle based standard developed in collaboration with other relevant bodies - MANDATORY
- Practice Statements: document that provides members with mandatory requirements - MANDATORY
- Code of Practice - document approved by RICS and endorsed by another professional body / stakeholder, providing users with recommendations for accepted good practice as followed by conscientious practitioners - MANDATORY OR RECOMMENDED GOOD PRACTICE (DOC WILL CONFIRM)
- Guidance Note - document provides users with recommendations for accepted good practice as followed by competent & conscientious practitioners - RECOMMENDED GOOD PRACTICE
- Information Paper - practice based information that provides users with the latest information and / or research - INFORMATION AND / OR EXPLANATORY COMMENTARY
What is the RICS ‘Black Book’?
- a suite of guidance notes
- define good technical standards for QSing and construction professionals
What should employers do to create an ethical environment?
- establish confidential procedures for whistle blowing
- include ethical evaluations into formal performance appraisals
- include ethical standards into recruitment, employment contracts & training
- ensure adequate planning, training & ethical performance monitoring when implementing change
- become chartered with RICS
- Promote CPD within the relevant area
What tools are available to help members make ethical decisions?
RICS ethics decision tree
What is the difference between ethics & integrity?
- ethics are moral principles that govern a person’s behaviour or the conducting of an activity
- integrity is the quality of being honest & having strong moral principles
- in summary, ethics looks at the big moral picture whilst integrity is focused on personal characteristics
What are key areas where ethics are important?
- gifts, bribes, hospitality
- equal opportunity, discrimination & sexual harassment
- conflicts of interest
- money laundering
What does a firm need to meet to be ‘Regulated by the RICS’?
- offer professional services in surveying disciplines
- have at least 25% (senior manager, partner or owner), who are qualified RICS Professionals (AssocRICS, MRICS, FRICS)
- agree to observe & comply with RICS Rules of Conduct and RICS Ethical Standards
What is a locum?
- relates to firms which are sole practitioners or have a sole director
- a locum is another professional who is appointed to stand in for the surveyor if they are unable to work
What are insurance requirements for RICS regulated firms?
All RICS regulated firms must have Professional Indemnity Insurance which meets the following minimum limit based on the firms turnover in the previous year:
Turnover of £100,000 or less - £250,000
Turnover of £100,001 to £200,000 - £500,000
Turnover of £200,001 or more - £1,000,000
Alongside PI, they will also require:
- public liability
- buildings insurance
- employer liability cover
- director & officer’s cover
- contents insurance
- business interruption insurance
What are the CPD requirements for chartered surveyors?
- a minimum of 20 hours of CPD each calendar year
- at least 50% formal CPD
- must maintain a relevant & current understanding of RICS professional & ethical standards during a 3-year rolling period
How do you differentiate between formal & informal CPD?
formal - structured learning that has a clear learning objective & outcome, such as:
- professional training course
- structured online training
- learning that includes an assessment measure
informal - self-managed learning that is relevant or related to your professional role, such as:
- private study
- on the job training
What is a conflict of interest?
anything that impedes an individual’s or firm’s ability to act impartially & in the best interest of a client
What information has RICS published on conflicts of interest?
Conflicts of Interest Professional Statement, March 2017
What 3 types of conflict of interest are outlined in the Conflicts of Interest RICS Professional Statement 2017?
- Party conflict - a situation which the duty of an RICS member or firm acting in the interest of a client on a professional assignment conflicts with a duty owed to another client (e.g. acting for both a client and contractor on the same project)
- Own conflict of interest - a situation whereby the duty of an RICS member or firm acting in the interest of a client on a professional assignment conflicts with the interests of the same member / firm
- Confidential information conflict - a conflict between the duty of an RICS member or firm to provide material information to one client and the duty of that RICS member / firm to another client to keep that same information confidential
Can you provide examples of conflicts of interest?
- Acting for competing clients
What is informed consent?
An RICS member has highlighted to all parties who are or may be affected that there is an actual or risk of conflict of interest, but those parties willingly give consent to them continuing their role. This can only be sough once the RICS member is satisfied that proceeding is:
- in the interest of all of those who are or may be affected
- is not prohibited by law
What is a bribe?
An inducement or reward offered, promised or provided to gain any commercial, contractual, regulatory or personal exchange
What is the Bribery Act 2010?
It covers criminal law relating to bribery, containing 4 main offences:
- general offence of bribing
- general offence of being bribed
- offence of bribing a foreign public official
- corporate offence of failing to prevent bribery by persons associated with relevant commercial organisations
It applies to people in both the private & public sector
What is money laundering?
- the illegal process of making large amounts of money generated by a criminal activity, such as drug trafficking or terrorist funding, appear to have come from a legitimate source
What regulations are associated with money laundering?
The Money Laundering & Terrorist Financing Regulations 2019
What information has the RICS published in relation to money laundering?
The Countering bribery & corruption, money laundering & terrorist financing Professional Statement 2019
What is corruption?
- a form of dishonesty or criminal offense undertaken by a person or organisation entrusted with a position of authority
- usually acquire illicit benefit or abuse of power for ones private gain
What is a terrorist financing?
The solicitation, collection or provision of funds with the intention to support terrorist acts or organisations
What is modern slavery?
- the severe exploitation of other people for personal or commercial gain
- people being forced to work against their will or illegally
What legislation is relevant to modern slavery?
Modern Slavery Act 2015
What are some examples of modern slavery?
- child slavery
- forced labour
- human trafficking
What is the purpose of PI insurance according to the RICS?
According to RICS UK Professional Indemnity Insurance Requirements (2021):
- ensures that if a firm faces a claim, it is protected from financial loss that it cannot meet from its own resources
- protect the insured member / firm against the consequences of its liability to pay damages to 3rd parties from breaches of professional duty
- ensure the firms clients do not suffer financial loss that the firm cannot meet
What is uninsured excess?
The part of a PI claim the firm must pay itself
What is PI insurance run-off cover?
- a form of PI insurance which covers historic liabilities of a business after it ceases to trade
- any claims made under the policy will relate to work carried out before trading stopped
How long should run-off cover be in place?
- RICS expects it to be maintained for a minimum period of 6 years from the cessation of practice
Who is the president of the RICS?
Clement Lau FRICS
Why did the previous RICS president step down?
- the chief executive & senior members of the executive board stepped down after the outcome of an external review of its corporate governance known as the Levitt report
What is the Levitt report?
- an independent review commissioned by the RICS
- RICS commissioned a Treasury Management Audit in 2018
- 4 non-executive members of the board raised concerns that the audit had been supressed and were subsequently dismissed from the Management Board
- the Independent Review (Levitt Report) then was launched to identify any failures of governance
- the report determined that concerns were legitimate and they were wrongly dismissed
- the report made 18 recommendations which include those on governance, executive remuneration, whistle blowing & legal advice
