Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Building Surveying APC > Ethics, Rules of Conduct & Professionalism > Flashcards

Ethics, Rules of Conduct & Professionalism Flashcards

1
Q

What is the meaning of the RICS moto?

A

There is measure in all things.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

What is the mission statement of the RICS

A
  • To qualify and equip their members to provide the highest level of professional service.
  • To promote and enforce standards.
  • To lead solutions to the major challenges faced by the built environment.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

When was the RICS founded?

A

1868

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

What are the RICS’s 5 principles of better regulation?

A
  • Proportionality
  • Accountability
  • Consistency
  • Targeting
  • Transparency
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

What is the difference between RICS ethics and rules of conduct?

A
  • Ethics are a set of moral values
  • Rules are of conduct are a framework which we should all work to.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

How many RICS global and ethical standards are their?

A
  • Until 1st February 2022 there were 5 Global and Ethical Standards.
  • From 1st February 2022 these have been consolidated within the New Rules of Conduct 2022.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

What are the 5 RICS Rules of Conduct

A

1.Members and firms must be honest, act with integrity and comply with their professional obligations, including obligations to the RICS

  1. Members and firms must maintain their professional competence and ensure that services are provided by competent individuals who have the necessary expertise.
  2. Members and firms must provide good quality and diligent service
  3. Members and firms must treat others with respect and encourage diversity and inclusion.
  4. Members and firms must act in the public interest, take responsibility for their actions, act to prevent harm and maintain public confidence in the profession.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Why did the previous rules of conduct change?

A
  • The previous rules had been in place since 2007
  • Following research and consultation with RICS members, firms and members of the public, the majority voted in favour of replacing the existing rules of conduct and the separate global professional standards.
  • This provided a single document which enabled greater clarity for RICS members and firms.
  • I also understand that their is a greater emphasis on clearer example behaviours, understanding evolving technology and tackling climate change.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Talk us through your understanding of the Rules of Conduct changes?

A

The Rules of Conduct October 2021 Global Practice Statement will overhaul the previous separate documents:

  1. Rules of conduct for members
  2. Rules of conduct for firms
  3. Global professional standards.

Appendix A of the Rules of Conduct now contain the professional obligations of members and firms.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

What are the professional obligations of members?

A
  • Members must comply with the CPD requirements set by the RICS, which requires members to complete 20 hours of CPD, 10 of which are required to be formal CPD.
  • Members must cooperate with the RICS
  • Members must promptly provide all information reasonably requested by the Standards and Regulation Board, or those exercising delegated authority on behalf of the RICS.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Why does the RICS have Rules of Conduct?

A
  • To provide a framework that we can all work to and so the client knows they are 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.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Your brother-in-law is a chartered surveyor. You find out that he is working outside the RICS Rules of Conduct. What do you do?

A
  • I verify the facts and confront him, reminding him of his duties as a member of the RICS.
  • I inform the RICS stating my relationship to the person and any corrective action that I believe my brother-in-law is putting in place.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

In the case of a breach of a rule of conduct, what is the procedure?

A
  • Not every shortcoming will give rise to proceedings
  • A formal investigation by the Head of Regulation of the RICS is the first step in the process.
  • The RICS can request information and/or visit and inspect compliance.
  • Members must fully cooperate with all enquiries.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

How can a disciplinary proceeding be triggered?

A
  • Somebody complaining to the RICS
  • An allegation by a client or a third party
  • Information received or established by the RICS
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

What three actions can be imposed after the end of an RICS investigation following a Rules of Conduct Breach?

A
  • Fixed penalty
  • Consent order
  • Disciplinary panel
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

What are fixed penalties?

A
  • A fine by the RICS
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

What are consent orders?

A

It is a written agreement between the RICS and a member or firm concerning a disciplinery issue or a breach of the RICS rules.

It can require a member to:
- Take certain corrective actions, or
- Restrain then from taking certain actions for a specific period of time and
- May require them to pay a fine or incurred costs.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

When is a disciplinary panel applicable and what can you tell me about them?

A
  • They are used for more serious breaches
  • The panel will usually be held in public
  • The burden of proof is on the RICS
  • A balance of probabilities approach will be adopted
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

What sort of breaches would expulsion be suitable for?

A
  • Gross, persistent or willingly failure to comply with an RICS rule or conduct
  • Fraud, dishonesty, conviction of a serious criminal offence, gross incompetence, deliberate discrimination and misappropriation of client money.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

What procedures must you follow if you are starting up a new practice?

A
  • Contact the RICS for guidance and obtain a company starter pack.
  • Inform the RICS and register for regulation.
  • Prepare a complaints handling procedure
  • Abide by the RICS Rules of Conduct
  • Use and designation ‘ Regulated by the RICS’ on all practice material.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

Would you advertise your new company on the press?

A

Yes, as long as it is in a trustful and respectable manner, in line with the RICS Rules of Conduct.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

What insurances would you need if you were starting up your own firm?

A
  • Professional Indemnity Insurance (PII)
  • Employers Liability Insurance (ELI)
  • Public Liability Insurance (PLI)
  • Buildings insurance of an office premises (BIO)
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

What sort of information do registered firms have to send to the RICS annually as part of there ‘annual return’ and what are the consequences of failure in doing so? (Companies Act 2006)

A

This information includes;
- Type of business and staffing.
- Nature of their clients.
- Complaints handling procedure and records of any complaints.
- Training provision.
- Professional Indemnity (PI) insurance details.
- Whether the firm holds clients money.

Failure to do so is punishable by a fixed fine.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

What process do regulated firms need to put in place when handling clients money?

A

It is crucial to preserve the security of client’s money which does not wholly belong to the company.

Regulated firms that operate a client’s account must;
- Set clear segregation of duties for employees.

  • A principle oversees the client money accounting functions.
  • Principles cannot override controls.
  • Competent and knowledgeable staff are to process client’s money with cover for long term absence allowed for.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

What are the different types of client money accounts?

A
  • General accounts hold money for more than one client
  • Discrete accounts are assigned to an individual client.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

What is meant by the term Negligence and what are the consequences of being negligent?

A
  • Negligence is a failure to provide the duty of care that is owed to the client or 3rd party.
  • A duty of care is care is owed to all clients or 3rd parties using reasonable skill & care.
  • If the duty of care is breached due to Negligence a claim may arise resulting in damages being paid or a professional indemnity insurance claim being incurred.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
27
Q

Tell us about Merit v Babb case law?

A
  • This case dates back to 2001 and highlights the importance of having run off cover in place.
  • A surveyor was sued for negligence by a former client.
  • Because the firm was no longer in practice, the client managed to successfully sue the individual surveyor.
  • This caused a big shock in the industry and highlighted the need for run off cover to be in place for all previous employees.
28
Q

What must a complaints handling procedure include?

A
  • The RICS provides a model form
  • The receipt of the complaint must be confirmed to the complainant within 7 days and must be investigated within 28 days of the complaint.
  • The process must include a redress mechanism (a way to accept, assess, and resolve complaints)
  • Details of the policy should be issued to the client with the Terms of Business.
  • It must be clear, quick, transparent and impartial.
  • Names and contact details of nominated investigating person should be stated.
  • All complaints, their progress and their outcomes must be recorded.
  • Need to advise PI insurers of a complaint immediately.
  • The process must have a minimum of two stages.
29
Q

What are the two stages required as a minimum within a complaints handling procedure?

A
  • Stage 1: where there needs to be consideration of a complaint by a senior member of the firm or the complaints handling officer. This stage must be free of charge.
  • Stage 2: if the issue is not resolved then the complaint is referred to an independent third party with the authority to award redress. The complainant may be expected to contribute towards costs at this stage.
30
Q

What is an independent redress scheme?

A
  • It is a consumer scheme designed to handle small issues that would be disproportionately expensive to take to court.
  • If the scheme judges in favour of the consumer, then the finding is binding.
  • If the scheme judges in favour of the firm, then the decision can be escalated to the court.
  • If the complaint related to a large sum of money, or if the complaint wishes to do so, they can take the matter to court.
31
Q

What do you do if you receive a letter of complaint?

A

I would acknowledge the receipt of the letter and then, as per our firms complaints handling procedure, I would forward it to the person within my firm designated with handling complaints and would provide additional information as requested.

I would also highlight the importance of notifying the PII providers immediately.

32
Q

What is the RICS Clients Money Protection Scheme?

A

This is a money protection scheme provided by the RICS.

Its contains provision for any member of the public to be reimbursed of direct loss of funds when using any RICS regulated firm.

This is provided through an RICS insurance policy.

33
Q

What is the purpose of joint names on a client account?

A

It is for the purpose of dual authorisation.

34
Q

What are the continuous professional development requirements?

A

Members must undertake and record appropriate lifelong learning.

On request by the RICS, they must provide evidence that they have carried out the CPD to maintain and improve their levels of competence.

35
Q

How many hours of CPD must be carried out annually for both chartered or otherwise?

A

As chartered surveyor, I must carryout at least 20 hours of CPD, a minimum of 10 of which must be formal.

Members must undertake learning on the standards expected around RICS ethics on a rolling 3-year period.

All CPD hours must be recorded via the RICS online management system.

36
Q

What sort of activities are included as part of CPD requirements?

A

An activity must have a clear learning activity relevant to the role to count as CPD.

Formal CPD can be class as web seminars with structured assessments, formal seminars, providing training to others where research and preparation is required.

37
Q

What does PII stand for?

A

Professional indemnity insurance.

38
Q

What is the purpose of PII?

A

To provide financial cover in the event a client suffers financial loss as a result of a breach of professional duty e.g negligence, errors, omissions.

39
Q

What benefits does PII provide for the client?

A

The client is able to recover their financial loses.

40
Q

On what basis is PII underwritten in the UK?

A

On a claims made basis.

41
Q

In terms of PII, what does ‘on a claims basis’ mean?

A

The insurance policy that is in place at the time that the breach is discovered is responsible for providing the indemnity, not the insurance policy when the breach was made.

42
Q

What are the requirements of PII as set by the RICS?

A
  • The policy must be made on an ‘each and every claim’ basis (meaning each individual claim has its own limit of indemnity though multiple claims arising from the same cause will be treated as a single claim).
  • The RICS sets out the minimum levels of indemnity.
  • The RICS sets out the maximum levels of uninsured risks.
  • Run off cover must be in place for at least 6 years.
  • The policy should include cover for past & present employees, directors and partners.
43
Q

What are the minimum levels of indemnity for PII Insurance?

A

Minimum indemnity limit levels per turnover of proceeding year:

Firms Turnover (Proceeding Year):
£100,000 or less - £250,000
£100,001 - £200,000 - £500,000
£200,000+ - £1,000,000

Maximum levels of uninsured excess turnover of proceeding year:

Firms Turnover (Proceeding Year):
£500,000 or less - The greater value between 2.5% of
the sum insured or £10,000
£500,000+ - 2.5%

44
Q

What measures should be taken to try & avoid PI claims?

A
  • Keep full and detailed records of meetings & conversations had.
  • Record recommendations & advice given.
  • Use proper letters of engagement, scope of services and terms of engagement documents.
  • Don’t advise on a specialism outside your field of experience.
  • Follow RICS guidance.
  • Avoid poor management & excessive workloads.
45
Q

If you make a mistake in a cost plan what would your insurance company expect?

A

For you to notify them and comply with any conditions or requirements within the insurance policy.

46
Q

If an estimate prepared by a QS is incorrect can the client claim damages?

A
  • An estimate that is incorrect itself will not provide the client with a right for redress.
  • The client must demonstrate that the QS warranted justification or that it was incorrect due to a lack of skill and care.
  • It could have been incorrect due to reasons out of their control e.g market conditions.
47
Q

How can you limit your liability when agreeing terms of appointment with a client?

A
  • Base the appointment on reasonable care and skill rather than fitness for purpose, which is more onerous.
  • if the clients requirements are performance based, this may imply fitness for purpose. It is advised to include a clause which limits the appointment to reasonable care and skill.
  • Run off cover must be in place.
  • Execution of the appointment under hand will result in a reduced liability period of 6 years.
48
Q

Describe the duty of RICS members/firms when there is a risk of a conflict of interest arising?

A

An RICS member/firm must not advise or represent a client where doing so would involve a conflict of interest or, a significant risk of a conflict of interest, unless it is appropriate to sought informed consent from affected parties.

49
Q

What is informed consent?

A

Informed consent occurs when a party who is affected by a conflict of interest, acknowledges the risk, but still agrees to instruct the RICS member/firm to proceed with the agreement.

50
Q

When is it appropriate to proceed with a conflict of interest with informed consent?

A

Informed consent may be sought if the RICS member/firm is satisfied that proceeding despite a conflict of interest is;

a. In the best interest of all of those who may be affected.
b. It is not prohibited by law.
c. That the conflict will not prevent the RICS member/firm from providing a competent, unbiased and diligent service to those who may be affected.

51
Q

What are RICS members/ firms required to record in regard to conflicts of interest?

A

Keep records of decisions made in relation to whether to accept (or continue) an individual professional assignment, the obtaining of informed consent, and any measures taken to avoid a conflict of interest arising.

52
Q

How must RICS members/ firms deal with confidential information?

A

RICS members and firms must maintain the confidentiality of confidential information unless disclosure or required by law or the RICS member/firm can demonstrate that the disclosure of this information was consented.

53
Q

What are the three types of conflict of interest?

A

a. Party Conflict
b. Own Interest Conflict
c. Confidential Information Conflict.

54
Q

What is a party conflict?

A

This is a situation where the duty of an RICS member/firm to act in the interest of a client in a professional assignment conflicts with a duty owed to another client or party in relation to the same or a related professional assignment.

55
Q

Describe an own interest conflict?

A

This is a situation where the duty of an RICS member/firm to act in the interests of a client in a professional assignment conflicts with the interests of that same RICS member/firm.

56
Q

Describe a confidential information conflict?

A

This is a conflict between the duty of an RICS member under paragraph 2.2 to provide material information to one client, and the duty of an RICS member/firm under paragraph 2.1 to another client to keep that information confidential.

57
Q

The most important reason for avoiding conflicts?

A

To prevent anything from getting in the way of an RICS member/ firms duty to advise and represent each client objectively and without regard to the consequences to another client or third party or your own interests.

58
Q

When can you consider proceeding with an instruction where there either is a conflict of interest or a significant risk of a conflict of interest?

A
  • You should only proceed with the work, by seeking informed consent from the affected parties, if their best interests will be served by you carrying out the work as opposed to any other firm.
  • Informed consent should only be proceeded with if only the best interests of the RICS member/firm are best served.
  • Obtaining informed consent is a process that requires proper consideration, professional judgement and careful execution with every affected party.
59
Q

During your project at 55 Napier Road, how did you determine / advise your client(s) that it was appropriate to proceed despite a conflict of interest being in place?

A
  • I recognised that there was a conflict of interest in advising/ representing the tenant to obtain building warrant and act as contract admin for their tenant refurbishment works by regularly representing their landlord in other works.
  • I had an understanding of the building through having previously undertaken the building warrant for the landlords stripout works prior to the tenant entering in to their lease. Also, the landlord would get comfort from the fact that the works were being underseen by a competent firm that they have past experience with.
  • Therefor, it was my opinion that it was mutually beneficial for myself / PMP to proceed with the work without impeding my ability to provide an impartial, diligent and competent service. I informed both parties of the conflict and provided justification of my opinion. They agreed and I sought informed consent from both parties prior to proceeding with the instruction.
60
Q

How did you consider the nature of the parties before the before proceeding with informed consent at the project to 55 Napier Road?

A
  • I am aware also aware that proceeding with informed consent from both parties is not sufficient enough to proceed with the instruction despite a conflict of interest or a perceived conflict of interest and that it requires professional judgement.
  • I understand that the degree of sophistication and knowledge of conflicts of interest is also a relevant factor to consider.
  • One party had a Europe-wide presence and the other had a presence across the UK and had a significant management structure so they were sophisticated. Having also discussed the nature of the conflict and provided appropriate information to each party in the process of obtaining informed consent it was clear that both parties had a knowledge and understanding of conflicts of interest.
61
Q

How did you seek informed consent from both parties at 55 Napier Road?

A
  • I am aware also aware that proceeding with informed consent from both parties is not sufficient enough to proceed with the instruction despite a conflict of interest or a perceived conflict of interest and that it requires professional judgement.
  • I was entirely transparent with both parties regarding the nature of the conflict or perceived conflict and provided information to each party as was appropriate. Once both parties accepted this, I issued a letter based on the sample letter provided within the RICS Conflicts of Interest Professional Standard. This letter along with with other recorded communications via email correspondence ensure their was an auditable record of the process.
62
Q

How did you decide to proceed with the instruction at 55 Napier Road, Cumbernauld despite there being a conflict of interest?

A
  • I reviewed the RICS Global Professional Standard on Conflict of Interest to inform my decision.
  • Part of the criteria set out within this standard includes:
    a. If it is in both parties best interest.
    b. If it is not illegal.
  • The professional standard also stated that I consider the sophistication of both parties and their understanding of conflicts of interest.
  • As I had already drafted drawings from obtained statutory consents for the landlord’s works prior to the tenant taking occupation and I already had a knowledge of the premises - in my opinion, it was in the tenants best interest that I proceeded.
  • In my opinion it was in the best interest of the Landlord as they knew that I had experience in obtaining building warrant and planning permission for them across several instructions so they had comfort that the tenant was complying with their lease obligations.
  • Finally, I was confident both parties were sophisticated and had an understanding of conflicts of interest. The Landlord employed several individuals chartered by the RICS and the tenant was a large company with significant management structure.
63
Q

How did you seek informed consent at 55 Napier Road?

A
  • I was honest and transparent with both parties regarding the nature of the ‘party’ conflict. I also recorded all correspondence via email so as to create a written record.
  • Once I was comfortable that both parties understood the nature of the conflict or perceived conflict and was comfortable that it’s potential for unconscious was minimal to none, I proceeded with obtaining informed consent.
  • I issued a letter based on the sample letter provided within the RICS Global Professional Standard for conflicts of interest. The letter stated:
    a. The address of the project
    b. The parties involved.
    c. The nature of the conflict/ perceived conflict.
    d. Justification for proceeding with informed consent.
64
Q

If the client had expressed to you that they wished to make a formal complaint in relation to delays to 4th Floor, 58 Waterloo Street, what actions would you have taken?

A
  • I would advise the client to write a letter of complaint and provide details of the senior member of staff at PMP who is responsible for dealing with complaints and I would again provide a copy of our complaints handling procedure, although this was provided with the terms of business on our instruction.
  • I would also inform the senior member of staff of the expected complaint, and of my intent to be upfront and honest during their internal investigation.
  • I would also advise the complaint handler that our Professional Indemnity insurers are informed of the complaint immediately on receipt of the complaint.
65
Q

What is PMP’s complaints handling procedure?

A
  1. Our CHP stated the senior, chartered, member of staff responsible for handling and investigating complaints.
  2. We request that if complaints have been made verbally to any member of staff, that they are made in writing to the individual assigned to deal with complaints.
  3. The complaints handler will respond within 7 days of receipt of the complaint confirming that they have received the complaint. Thereafter within 14 days they provide the complainant with PMP’s version of events and give an opportunity for the complainant to comment.
  4. Within 21 days from receipt of the complaint, our complainant will undertake his own separate review and will respond to the complainant at that point with the results of the internal investigation and advise regarding what redress action will be taken.
  5. If the complainant is dissatisfied, the managing director will thereafter undertake a separate review and will respond to the complainant within a further 7 days.
  6. If the complainant remains dissatisfied with the outcome, PMP recommend mediation according to to either the RCIS Mediation service or the Centre for Dispute Resolution.
66
Q

What is money laundering and do RICS members have any obligations in regard to money laundering?

A

This is the concealment of funds made from criminal activity to disguise the origin of the funds.

RICS members have an obligation to:
- Not facilitate or be complicit in money laundering.
- Report any suspicions of money laundering activity to the relevant authority.

This is outlined in the RICS Professional Statement on Countering Bribery and Corruption, Money Laundering and Terrorist Financing.

Building Surveying APC (16 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions