Ethics, Rules of Conduct & Professionalism Flashcards
What is a professional statement?
Document detailing mandatory requirements for RICS members and firms
What are the three types of conflict and what do they involve?
Party conflict - relating to work on the same or related instruction for two different parties
Own interest conflict - relating to a personal interest
Confidential Information conflict - relating to work between two parties which is confidential
What are the 5 Rules of Conduct?
1) Members and firms must be honest, act with integrity and comply with their professional obligations, including obligations to RICS.
2) Members and firms must maintain their professional competence and ensure that services are provided by competent individuals who have the necessary expertise.
3) Members and firms must provide good quality and diligent service. Time frame,
4) Members and firms must treat others with respect and encourage diversity and inclusion.
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 the profession.
What are the 3 professional obligations for all RICS members?
- Members must comply with the CPD requirements set by RICS
- Members must cooperate with RICS
- Members must promptly provide all information reasonably requested by the Standards and Regulation Board, or those exercising delegated authority on its behalf.
What are the 7 professional obligations for all RICS members?
- Firms must publish complaints-handling procedure, which include an alternative dispute resolution provider approved by RICS and maintain a complaints log.
- Firms must ensure that all previous and current professional work is covered by adequate and appropriate professional indemnity cover that meets the standards approved by RICS.
- Firms with a sole principle must take appropriate arrangements for their professional work to continue in the event of their incapacity, death, absence from or inability to work. Full back agreement. Locum agreement
- Firms must cooperate with RICS.
- Firms must promptly provide all information reasonably requested by the Standards and Regulation Board, or those exercising delegated authority on its behalf.
- Firms must display on their business literature, in accordance with RICS’ published policy on designations, a designation to denote that they are regulated by RICS.
- Firms must report to RICS any matter that they are required to report under the Rules for the Registration of Firms.
What are the CPD requirements for members?
20 hours per year, 10 must be formal
What is a conflict of interest?
Something that may affect you or your firm from acting impartially and in the best interests of your client. Can cast doubt on your integrity and/or damage reputation.
Every RICS member must:
- Identify and manage COI in accordance with the professional statement
- Keep records of the decisions made in relation to whether to accept individual professional assignments, the obtaining of informed consent and any measures taken to avoid COI arising.
Where can you find guidance on conflicts of interest?
Conflicts of Interest 1st Edition, effective from 1st January 2018 (Professional Statement)
How does the VOA check conflicts of interest?
DVS - Checks are undertaken prior to any work and recorded on case control document including competence to complete work. If conflicts are identified then the matter is escalated with line manager.
Other work streams still check for COIs but do not document where there isn’t one only where there is and line manager informed.
What are some ways to ensure a conflict of interest doesn’t happen?
Get informed consent - Informed consent may be sought only where the RICS member or regulated firm is satisfied that proceeding despite a COI is
- In the interests of all those who are of may be affected
- Is not prohibited by law.
Information barrier
Do not accept instruction
What are the 6 key principles of the Bribery Act 2010?
1) Proportionate procedures
2) Top-level commitment
3) Risk Assessment
4) Due diligence
5) Communication (including training)
6) Monitoring and review
What are the 4 main bribery offences?
- A general offence of bribing
- A general offence of being bribed
- An offence of bribing of a foreign public official
- Failure of Commercial businesses to prevent bribes
What steps you must take when handling client’s money?
Clients must always have access to funds.
Client money must be kept separate and clearly identifiable.
Include ‘Client’ in account name
Interest on the account must be agreed with the client.
Maintain client ledger or running balance of any transactions.
Agree the terms and advise client on bank details.
Must not be overdrawn
What is a bribe?
An offer to induce an action which is illegal, unethical or a breach of trust
If a relative asked you to value a property for lending purposes what would you do?
This is a conflict of interest and it could be seen as biased. This would go against rule 1 and 5 of the rules of conduct as it is not in the public interest and I would not act with integrity while undertaking the instruction. Therefore, I would decline the instruction.
A potential client asks you to value a property you have little to no experience of, what do you do?
In line with rule 2 services should be provided by competent individuals who have the necessary expertise. Therefore, I would either decline the instruction and suggest another firm who deals with these valuations or undertake the necessary training to become competent.
A client offers you wine after an instruction what do you do?
In VOA refuse the offer as in line with VOA procedures but inform my manager of the offer
Private practice it needs to be proportionate to the work undertaken in this case I could accept the offer and then also note it under the gifts register of the company.
