Ethics, Rules of Conduct, Professionalism Lvl 3 Flashcards
Who is the president of the SCSI
Enda McGuane
Who are the SCSI?
The SCSI are the Irish professional body representing construction, land and property professionals in Ireland.
What is the role of the SCSI
The role of the SCSI is to regulate the profession and is accountable for both its members and the public. The three key roles they state are:
o Set the highest standards
o Regulate its members
o Develop and produce leading edge research and knowledge
What is the SCSI Council
The council is chaired by the President of the SCSI, and they make decisions on policy which is then implemented by subsidiary committees and boards.
What is the role of the Professional Conduct Committee?
The role of the SCSI Professional Conduct Committee is to hear disciplinary cases and exercise the disciplinary powers of the society.
Some of the sanctions that can be imposed
by the committee are:
o Caution the member
o Reprimand the member
o Suspension (no more than 12 months)
o Give one or more undertakings
o Fine
o Impose conditions
o Expel
o Order member to take specific action
What are the SCSI – Rules of Conduct
o Ethic and Professional Behaviour
Act with integrity & avoid conflicts of interest
o Conduct
Members are expected to conduct themselves in accordance with the
rules
o Competence
Members shall carry out their professional work with due skill, care &
diligence and with proper regard for standards.
o Service
Members shall carry out their work in a timely manner & with property
regard for standards of service & customer care.
o Continuing Professional Development (CPD)
Members shall plan, undertake,
record & evaluate appropriate CPD.
o Solvency
Members shall ensure that their personal & professional finances are
managed appropriately.
o Duty of Confidentiality
Shall keep all client information confidential. Information can only be disclosed with client consent of if required by law or court.
o Co-operation
Shall co-operate fully with staff of the society
Why do the SCSI have Rules of Conduct
- To establish trust in the society and its members
- To protect the public
- To uphold the reputation of the profession.
What are the principles for better regulation
○ Necessity
○ Effectiveness
○ Proportionality
○ Transparency
○ Accountability
○ Consistency
SCSI Conduct of Business
o Training
Member firms shall have procedures in place to ensure staff are properly
trained and competent
o Complaints Handling
Member firms shall have an internal complaints procedure
set up.
o Client Money
Members shall preserve the security of client money in an account
separate to the company account
o Professional Indemnity Insurance
Member firms shall ensure that all previous & current work is covered by adequate & appropriate professional indemnity
insurance.
o Advertising
Members shall advertise or promote their services only in a truthful, tasteful and appropriate manner.
o Incapacity
Member firms which only has a sole principal shall have in place appropriate arrangements in the event that sole principal’s death, incapacity or extended absence.
What are the 5 standards of the RICS
o Act with Integrity
o Always provide a higher Standard of Service
o Act in a way that promotes Trust in the profession
o Treat others with Respect
o Take Responsibility
What is professional indemnity insurance
PI Insurance is put in place to protect staff, firm and client from financial loss arising from negligence.
Once qualified, what letters can you add to your name
MSCSI & MRICS
Who are the PSRA
The PSRA are the Property Services Regulatory Authority and were formed in April 2012 with the aim to achieve uniformity and transparency in licencing, regulation and provision of information to the public.
What are the functions of the PSRA
The functions of the PSRA are as follows:
o To control and regulate property companies
o Establish complaints and redress system for customers
o Set and enforce standards
According to the PSRA, how long must you hold offers for?
Agents must keep a record of all offers on a property for up to 6 years.
How would one make a complaint against a Property Services Provider
o Inform the PSRA of the complaint
o PSRA decide whether or not to investigate
o PSRA issue a decision
What is a Property Services Provider (PSP)
The Property Services (Regulation) Act 2011 applies to all Property Services Providers. These are persons involved either as corporate bodies, partnerships, sole traders or employees in
o The purchase or sale, by whatever means, of any estate or interest in land (including
buildings) wherever situated
o The auction of property other than land
o The letting of any estate of interest in land wherever situated
o The provision of property management services
If you are acting for a client in disposing a building and another one of you clients wants to purchase it, what do you do?
Potential conflict of interest. Disclose in writing to sales client and put forward we can decline or set up an information barrier. If the sales client declined, we would have to tell the second client no.
If the client who wants to purchase it asks you to tell him what it would take to buy it, what would you do
Duty of care is to my sales client.
What are consent orders
It is a written agreement between the RICS and a member or firm concerning a disciplinary issue on a breach of the RICS rules.
It can require the member to take certain corrective actions, or restrain them from taking certain actions for a specified period of time and may require them to pay a fine or costs.
What insurances would you need if you were starting up your own firm
- Professional Indemnity Insurance.
- Employer’s Liability.
- Public Liability.
- Building’s insurance of an office premises.
What sort of information do registered firms have to send to the RICS annually
- It is called annual return and carried out on-line.
- Failure to do so leads to a fixed penalty.
- It includes:-
o Type of business and staffing.
o Nature of clients.
o Training provision.
o Complaints handling procedures details and records.
o PI insurance details.
o Whether the firm holds clients’ money.
What do you need to set up your own business?
o Obtain a company and individual PSRA Licence
o Do up a business plan
o Obtain finance
o Inform revenue of the company
o Register the company for VAT
o Get ISO approval
o Inform the SCSI of the new company
o Adhere to the rules of conduct of the SCSI / RICS
o Set up a client account for rent, services charges and deposits
o Organise professional indemnity insurance
o Have a copy of the red book
o Anti money laundering procedures
o Complaints procedure
o Data Protection and copyright licence.
When could someone be expelled?
- Gross, persistent or willful breach of rules of conduct
- Fraud, Dishonesty, Conviction of serious criminal offence
What processes need to be in place for handling clients money?
- Principle overseas the clients money accounting functions
- Principles cannot override controls
- Competent and knowledgeable staff
- Accounting systems and data must be secure
- Kept separate and clearly identifiable with the words “Client” included in the name
- Client must always have access
- Advise client on bank details
- Cannot be overdrawn
- Maintain client ledgers and provide a running balance.
What are the different types of client money accounts
- General account which holds money for more than one client
- Discrete accounts reference named clients
What is Merrit V Babb
- 2001
- Highlights importance of run off insurance
- Surveyor sued for negligence by former client
- Surveying firm was no longer in practice, individual was pursued successfully
What limitation periods are associated with underhand and deed forms of contract
- 6 Years for under hand
- 12 Years for Deed
What must a complaints handling procedure include?
- Must include Redress mechanism
- Details to the client should be issued with the TOE
- Clear / Quick / Transparent / Impartial and free of charge
- Names and contact details of nominated complaints handler should be provided
- 28 days to investigate
- All complaints, progress and outcomes must be recorded
- Must note the need to advise PI insurance of a complaint immediately
- 2 stages at minimum
1 - Consideration of the complaint from a senior member of staff and complaints handling officer.
2 - If issue is not resolved it is forwarded to third party. Complainant may need to contribute to costs at this stage
What do you do if you receive a letter of complaint
- Acknowledge and forward to firms designated complaint handler
- Inform our professional indemnity insurance
What is clients money protection scheme
- Protects members of the public from financial loss as a result of a RICS registered firm.
How many hours CPD are required
- Min 20 Hrs
- 10 Formal
- Ethics rolling every 3 years
What benefits does PI insurance provide to the professional
- Professional is protected from financial loss
- Firm does not have to meet a claim with their own assets and resources
On what basis is Insurance underwritten in Ireland
- Claims made basis
- Insurance policy in place at the time of notice is responsible
What are the requirements regarding professional indemnity insurance (RICS)
- Policy must be made on an ‘each and every’ claim basis
- Minimum levels of indemnity
- Maximum level of uninsured excess
- run off cover must be in place for 6 years
- Should include past and present staff
Minimum Indemnity
Turnover
100k or less - 250,000
100k - 200k - 500,000
200k + - 1,000,000
How can you avoid PI claims
- Keep records of meetings + conversations
- Record recommendations and advice given
- Letter of engagement, scope of services and terms of engagement
- Don’t advise outside your field of expertise
- Avoid poor management and excessive work loads.
How can you limit liability when agreeing terms of appointment
- Base appointment on reasonable care and skill rather than fitness for purpose
- If scope is performance based it could imply fitness for purpose.
- Run off cover
- Sign underhand
What are the main elements in a fee proposal
- Intro - Firm / Qualifications / Understanding of project and client
- Scope of Services
- Methodology - Approach you will take / Task involved and resources
- Fees and payment schedule - Fixed or variable or mix
- Qualifications and experience
- TOC
- Conclusion
Once you have agreed the services verbally, what would you do next
- Forward out a TOE
What is conflict of interest
A conflict of interest is where someone in a position of trust has a competing, personal or professional interest making it difficult for them to fulfill their duties impartially
How could a conflict be managed internally
- exclusivity of staff
- separate communication lines
- NDA
- Chinese wall
If client insisted you work for them regardless of conflict, what do you do
- Ensure they understand the conflict in writing
- Make them aware of the potential for reduced impartiality
- If they are still insistent, I would seek a letter of instruction to continue
- Agree working procedures to manage conflict
What are the mains principles of the Bribery Act
Offences are:
- Making a bribe
- Receiving a bribe
- Bribing a foreign public official
- Failure of a corporate entity to prevent bribers on it’s behalf
What are the steps to preventing bribery
- Proportionate procedures
- Top level commitment
- Risk Assessment
- Due diligence
- Communication
- Monitoring and review
You are attending event of a main contractor organised business conference. You win a raffle, what do you do
- Reject
- Charitable donation
What is money laundering
Money laundering is the process by which criminals attempt to conceal the true origin of their criminal activities
(AML) What legislation is covering it
- Criminal Justice (Money Laundering and Terrorist Financing Act) 2010
- Criminal Justice Act 2014
What are the 4 requirements of anti- money laundering
- Identify and carry out due diligence
- Report suspicious behavior
- Maintain records
- Provide staff training
What could arouse suspicion
- Unclear identity
- Process with haste
- Cash
- Unclear purchase entity (3rd parties)
- Fund coming from unusual source
Who is exempt from AML
- Financial institutions
- Credit institutions
- Tax consultants
- Accountants
- Government departments
What are we obliged to do if we see suspicious behavior
- Report to the firm’s Anti-Money Laundering Reporting Officer
AML What policy do you carry out
- Know your client
- Conduct a risk assessment
- Conduct client due diligence: (Photo ID /
Proof of address / Memo & Art of company) - Maintain records
- Apply ongoing monitoring to relationship
- Report suspicious activity
- Training
How are client monies being kept
In a separate account from company account. Labeled client
What are the key findings of SCSI Commercial Property Market Review and Outlook 2024
- Prime Office Capital to decline by 10%
- 5% increase in prime industrial rental
- Retail Capital unchanged
- Prime Retail Rental unchanged
- 66% drop in credit conditions
What is overall sentiment from SCSI Outlook 2024
Negative - Most sectors expecting decline in capital values and rents in 2024
Industrial most stable
Retail showing signs of recovery, increased investor interest in certain sub sectors
Office continues to struggle
Investment - Foreign investment declining/ domestic improving/ sustainable buildings attracting higher attention
Occupier demand - industrial high demand, particularly near arterial routes / retail vacancy dropping / Office remains low
Other key points - Credit conditions are tightening due to interest rates and banks preference for ESG buildings
What is the Ethics Tree
- An Ethics Decision Tree is a helpful tool designed to guide you through making ethical choices in various situations
- The decision tree typically follows a branching format with a series of questions at each node
Typical Questions:
- Is it legal
- Does it align with organisations code of ethics
- Have you considered all options
