Ethics, Rules of Conduct & Professionalism Flashcards
What are the 5 Rules of Conduct
- Members and Firms must be honest, act with integrity and comply with their professional obligations, including their obligations to RICS.
- Members and Firms must maintain their professional competence and ensure that services are provided by competent individuals who have the necessary expertise.
- Members and Firms must provide good quality and diligent service
- Members and Firms must treat others with respect and encourage diversity and inclusion
- Member 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.
When was the Code of Conduct updated? What changed?
February 2022. They combine the requirements for members and firms.
What is Appendix A?
This sets out the professional obligations to the RICS for Members and Firms
Give an example of the obligations for Members and for Firms?
Members:
- Must comply with CPD requirements (20 hours per annum, at least 10 formal for members), (48 hours per annum, at least 24 formal for those on the APC pathway).
- Must cooperate with the RICS
- Provide information requested by the Standards and Regulation Board
Firms:
- Must publish a complaints handling procedure
- Ensure the appropriate professional indemnity cover is provided.
- If a firm consists of a sole principle, then a locum professional needs to be provided
- Must cooperate with the RICS
- Provide information requested by the Standards and Regulation Board
- Must publish they are regulated by the RICS on business literature
- Must report any matter to the RICS they are required to report under the Registration of Firms
What is the Royal Charter?
A charter awarded in 1881 by Queen Victoria. Requires the RICS to promote the usefulness of the profession in the public interest.
What law governs Bribery?
The Bribery Act 2010
What are the crimes under the Bribery Act?
Offering a Bribe
Receiving a Bribe
Failing to prevent a Bribe
Bribing a Public Official
What are the punishments under the Bribery Act?
Unlimited fines for individuals and organisations. Individuals can also receive a jail sentence of up to 10 years.
What is Modern Slavery?
The illegal exploitation of people for commercial gain.
What are some tell-tale signs of Modern Slavery?
Legal documents being held by someone else.
Groups of workers being paid into the same bank account.
Workers perceive themselves to be in debt to someone else.
How would you report a suspected Bribe?
Report internally at your company, report it to the police, add suspected Bribe to Register of Interest.
How would you report suspected Modern Slavery?
Report directly to the police.
What is a Conflict of Interest?
A situation where an actual, perceived or potential risk that professional judgement will be compromised.
What are the 3 types of Conflict of Interest?
Party Conflict – where acting in the interests of one Client would conflict with the interests and duties owed to another Client.
Own Interest Conflict – where acting in the interests of a Client would conflict with your own beliefs
Confidential Information Conflict – where duty is owed to a Client to keep information confidential and where a duty is owed to another Client to divulge that information.
What is the difference between a Professional Standard and Practice Information.
Professional Standard – must be complied with
Practice Information – best practice document
However, if a professional negligence claim arises, members of firms will have to demonstrate they acted competently, which could be by following the Guidance Notes.
What is G&T’s gifts and hospitality policy?
Cannot accept gifts that are:
Over £100 for individuals
Over £250 for 2 or more people (groups)
What is money laundering?
The process of disguising the source of illegitimate money by making it appear legitimate.
What are the warning signs of money laundering?
Client providing large amounts of money in cash
What is the structure of the RICS?
What is the RICS’ motto?
Est modus in rebus – there is measure in all things
Who is President of the RICS?
Justin Sullivan
Say you pass today, What would you need to set up as an RICS firm?
PI insurance
Complaints Handling Procedure
Client Money Handling Procedure
Locum
What are the required PI levels?
£0-£100k -> £250k
£100,001-£200k -> £500k
Over £200,001 -> £1M
Uninsured excess
Annual turnover less than £10M -> 2.5% of sum insured, or £10k whichever is greater
Over £10M -> no limit
What is the difference between any one claim and in the aggregate cover?
Any one claim – full limit can be claimed against for each individual claim.
Aggregate – full limit is claimed against cumulatively over each claim.
What is run-off cover?
Allows clients to make a claim against a PI policy after a firm ceases trading.
What is the recommended limit of run-off cover?
6 years minimum to cover contracts signed under hand, 12 years to cover contract signed as a deed, 15 years to cover the statutory “long-stop” period.
What is G&T’s complaints handling procedure?
Once a complaint is received, a Partner must be notified and acknowledgement of the complaint should be made within 7 days.
Response and resolution of the complaint should be made within 28 days of the complaint being filed.
If the complaint cannot be resolved then the complaint should be taken to an independent redress provider.
Insurer is to be notified at every step.
Give some examples of independent redress providers?
CEDR - Centre for Effective Dispute Resolution
RICS Dispute Resolution Service
Why do you want to be a part of the RICS?
It’s the largest international property institution in the world. Being a member would mean I would get global recognition and be a part of an international professional community.
I will form a part of promoting best practice in the industry, which is something of significant importance to me.
What sanctions can be imposed by the RICS if an allegation of poor conduct is proved true?
Cautions, Fines, Conditions or total expulsion and de-registration of a member.
How many obligations are there for members and firms?
10 - 3 for members and 7 for firms.
What’s the difference between honesty and integrity?
Honesty - being truthful and transparent
Integrity - adhering to a strong moral code
What is the maximum level of uninsured excess?
Up to and including £500,000 limit - the greater sum of 2.5% or £10,000
Over £500,000 limit - 2.5% of the sum insured.
What are the six principles of bribery prevention?
- Proportionate Procedures
- Top Level Commitment
- Risk Assessment
- Due Diligence
- Communication
- Monitoring and Review
What are the five principles for better regulation of firms?
Proportionality
Accountability
Consistency
Targeting
Transparency
Are you aware of any updates to RICS guidance and standards?
The RICS has updated the Red Book relating to property valuation. However, this is not relevant to my pathway. I am aware that the RICS is continuing an update to the Black Book, which is due to be finished in 2025.
Whole Life Carbon Assessment Professional Standard was released Summer 2024
What is the Black Book?
A set of practice information documents and guidance that covers all processes over the lifecycle of a construction project.
Give an example of how you abide by rule 1?
I am open and transparent with Clients around fees and services, I do not allow myself to be negatively influenced by others.
Give an example of how you abide by rule 2?
I ensure to comply with my CPD requirements. I reflect on my work and look for areas of good practice as well as any areas of improvement.
Give an example of how you abide by rule 3?
I ensure to undertake my work in a timely manner, I clearly communicate with Clients and colleagues in a way they understand
Give an example of how you abide by rule 4?
I ensure to work cooperatively and use inclusive language inside and outside of the profession
Give an example of how you abide by rule 5?
I raise concerns with colleagues and clients when I feel something is not right. I ensure to support those that have raised concerns or complaints in the profession
What was the Levitt Review?
A review by Alison Levitt into historic treasury management matters at the RICS
What was the Bichard Review?
A review by Lord Bichard following the Levitt Review to clarify the purpose of the RICS and make proposals on its governing structure.
