Ethics, Rules of Conduct & Professionalism L1 Write up, FPQs

Question 1

What are the 5 Rules of Conduct?

Answer 1

• Rule 1- Members and firms must be honest, act with integrity and comply with their personal obligations as well as their obligations to the 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 a 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 their profession,

Question 2

What was the rationale for developing the new Rules of conduct?

Answer 2

• Simpler structure, making it easier for Members and Firms to understand the rules, providing more confidence for clients and the public.
• Provide clear examples to support members professional judgment. Each example is supported by example behaviours.
• Clear focus on respect, diversity and inclusion.
• Understanding evolving technology. Importance of using data and technology appropriately.
  Tackling global challenges. Rules show that Ethical practice by RICS members and firms has an important role when it comes to global challenges, sustainable development and tackling climate change.

Question 3

When did the new Rules of Conduct come into effect?

Answer 3

Created Oct 2021, came into effect Feb 2022.

Question 4

Can you explain some example behaviours of Rule 1? (Honesty/Integrity etc)

Answer 4

• Do not mislead others by their actions or omissions.
• Do not allow themselves to be influenced improperly by others (gifts/bribes etc)
  Firms have effective process for identifying actual and potential conflicts of interest.

Question 5

Can you explain some example behaviours of Rule 2? (Professional competence)

Answer 5

• Must only take work that they have the skills and resources to complete.
• Supervise employees undertaking work for them.
• Check subcontractors have necessary knowledge and skills.
• Maintain and develop knowledge throughout their career.
  Comply with legislation and RICS guidance.

Question 6

Can you explain some example behaviours of Rule 3? (Good quality and diligent service)

Answer 6

• Understand clients’ needs before completing an instruction.
• Agree a scope of services as well as its limitations.
• Agree a timescale for the work.
  Inform clients of any changes to the TOE or fee agreement

Question 7

Can you explain some example behaviours of Rule 4? (Respect/Diversity/Inclusion)

Answer 7

• Respect the rights of others and treat others with courtesy.
• Treat everyone fairly do not discriminate on improper ground.
• Do not bully or victimise anyone.
• Work cooperatively with others.

Question 8

Can you explain some example behaviours of Rule 5? (Act in public interest)

Answer 8

• Question practices and decisions that they suspect are not right.
• Support members who have acted in good faith to report concerns.
• Respond to complaints promptly.
• Do not dissuade complainants from approaching an alternative dispute resolution provider.

Question 9

Have you understood the Case studies relating to RICS ROC on Website?

Answer 9

• Negotiation & Public Interest (Have read them but not completely familiar with the exact details) however I am aware you need to consider the following.
• Key facts.
• Relevant legislation or RICS Standards/Rules of conduct.
• Use professional judgment to balance a variety of interests and principles.
• Show in your decision making you have done your utmost to follow professional standards set out by the RICS.

Question 10

What are the other benefits of being a member of the RICS? SKMARN

Answer 10

• Status. Your professional credentials provide unrivalled client confidence.
• Recognition. Promotion of your professional excellence to governments and markets.
• Market advantage. RICS status and standards gives you a competitive advantage.
• Knowledge. International practice standards, professional guidance, CPD and knowledge sharing.
• Network. Access to over 125,000 professionals worldwide.

Question 11

What must RICS regulated firms do in relation to Money Laundering?

Answer 11

• Not facilitate or be complicit in money laundering of terrorist financing activities.
• Have systems and training in place to comply with laws, ensure these are followed.
• Report any suspicions to relevant authorities.
• Evaluate the risks periodically.
• Ensure responses to the risks are appropriate.
• Use reliance of information where there is an appropriate level of confidence.
• Take appropriate measures to understand the client and their intentions.
• Verify identify of their client by undertaking necessary identity checks.
  Record information as to how the firm has met requirements of the professional standard.

Question 12

Why is property particularly targeted when it comes to Money Laundering?

Answer 12

Mostly because the sale of such an asset can provide an apparently legitimate reason for the existence of funds.

Question 13

Who does the the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 apply to?

Answer 13

Number of different business sectors, including accountants, solicitors and estate agents. Every business covered by the regulations must be monitored by a supervisory authority, such as the Financial Conduct Authority or HMRC.