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RICS APC > ETHICS, RULES OF CONDUCT & PROFESSIONALISM > Flashcards

ETHICS, RULES OF CONDUCT & PROFESSIONALISM Flashcards

1
Q

What is the meaning of the RICS Motto?

A

Est Modus in Rebus
‘There is measure in all things’

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2
Q

What is the Mission Statement of the RICS?

A
  • To qualify and equip their members to offer the highest standards of professional service.
  • To promote and enforce standards
  • To lead solutions to the major challenges facing the built environment through professional expertise.
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3
Q

When was the RICS founded?

A

1868

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4
Q

How is the RICS Structured?

A
  • The Governing council manage and agree the strategy for the RICS.
  • The Regulatory board, audit committee and management board are beneath the governing council and execute the strategy set by them.
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5
Q

What are the RICS’ 5 principles of better regulation?

A
  • Proportionality.
  • Accountability.
  • Consistency.
  • Targeting.
  • Transparency.
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6
Q

What is the difference between RICS ethics and rules?

A
  • Ethics are a set of moral values.
  • Rules of conduct are a framework that we work to.
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7
Q

How many Global Professional and Ethical standards are there?

A

From the 2nd February 2022 the Global Professional & Ethical Standards were consolidated within the New Rules of Conduct 2022.

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8
Q

What is Rule 1 of the New Rules of Conduct?

A

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

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9
Q

What is Rule 2 of the New Rules of Conduct?

A

Members and firms must maintain their professional competence and ensure that services are provided by competent individuals who have the necessary expertise.

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10
Q

What is Rule 3 of the New Rules of Conduct?

A

Members and firms must provide good-quality and diligent service.

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11
Q

What is Rule 4 of the New Rules of Conduct?

A

Members and firms must treat others with respect and encourage diversity and inclusion.

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12
Q

What is Rule 5 of the New Rules of Conduct?

A

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.

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13
Q

Why did the previous Rules of Conduct change?

A

To provide a single document to enable greater clarity for RICS members and firms.

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14
Q

What is the 1st listed professional obligation of members?

A

Members must comply with the CPD requirements set by the RICS which requires 20 hours of CPD for each calendar year, 10 hours of which must be formal CPD.

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15
Q

What is the 2nd listed professional obligation of members?

A

Members must cooperate with RICS

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16
Q

What is the 3rd listed professional obligation of members?

A

Members must promptly provide all information reasonably requested by the Standards and Regulation Board, or those exercising delegated authority on its behalf.

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17
Q

What is the 1st listed professional obligation of firms?

A

Firms must publish a complaints-handling procedure, which includes an alternative dispute resolution provider approved by RICS, and maintain a complaints log.

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18
Q

What is the 2nd listed professional obligation of firms?

A

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.

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19
Q

What is the 3rd listed professional obligation of firms?

A

Firms with a sole principal must make appropriate arrangements for their professional work to continue in the event of their incapacity, death, absence from or inability to work.

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20
Q

What is the 4th listed professional obligation of firms?

A

Firms must cooperate with RICS.

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21
Q

What is the 5th listed professional obligation of firms?

A

Firms must promptly provide all information reasonably requested by the Standards and Regulation Board, or those exercising delegated authority on its behalf.

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22
Q

What is the 6th listed professional obligation of firms?

A

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.

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23
Q

What is the 7th listed professional obligation of firms?

A

Firms must report to the RICS any matter that they are required to report under the Rules for the Registration of Firms.

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24
Q

Please explain the steps of the RICS Ethics Decision Tree?

A
  • Is a self reflective Framework.

Asks questions such as:
- ‘is it legal’,
- ‘is it in line with Rules of Conduct’;
- ‘would you be content for your actions to be made public’

to enable and informed decision.

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25
Q

Why does the RICS have Rules of Conduct?

A
  • To provide a framework for members and firms.
  • So the client knows he is getting a certian level of service.
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26
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
  • Confront him reminding him of his duties as a member of the RICS.
  • Inform the RICS specifying my relationship to the person and any corrective action which I believe
    my brother-in-law is committed to put in place.
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27
Q

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

A
  • A formal investigation by the Head of Regulation is the first step in the process.
  • The RICS can request information and/or visit and inspect to investigate compliance.
  • Members must cooperate fully with all enquiries.
  • However, not every shortcoming will necessarily give rise to proceedings.
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28
Q

How can a disciplinary proceeding be triggered?

A
  • Someone complaining to the RICS.
  • An allegation by a client or third party.
  • Information received or established by the RICS.
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29
Q

What three actions can be imposed after the end of the investigation stage?

A
  • Fixed penalty.
  • Consent order.
  • Disciplinary panel.
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30
Q

What are fixed penalties?

A
  • A fine by the RICS.
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31
Q

What are consent orders?

A
  • A written agreement between the RICS and a member or firm concerning a disciplinary issue.
  • 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.
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32
Q

When is a disciplinary panel applicable?

A
  • They are used for more serious breaches of conduct.
  • The panel will usually be held in public.
  • The burden of proof is on the RICS.
  • A balance of probabilities approach will be adopted.
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33
Q

What sort of breaches would expulsion be suitable for?

A
  • Gross, persistent or willful failure to comply with an RICS rule of conduct.
  • Fraud, dishonesty, conviction of a serious criminal offence, gross incompetence, deliberate discrimination, misappropriation of a client’s money.
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34
Q

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

A
  • Contact the RICS for guidance and obtain a company start up pack.
  • Inform the RICS and register for regulation.
  • Appoint a contact officer for all RICS communication.
  • Prepare a complaints handling procedure.
  • Obtain Professional indemnity insurance cover.
  • Abide by the Rules of Conduct for Firms.
  • Use the designation ‘Regulated by RICS’ on all practice material.
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35
Q

Would you advertise your new company in the press?

A
  • Yes as long as it is in a trustful and responsible manner in line with the Rules of Conduct for Firms.
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36
Q

What sort of information do registered firms have to send to the RICS annually?

A
  • Must submit an annual return, 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.
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37
Q

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

A
  • Professional Indemnity Insurance.
  • Employer’s Liability.
  • Public Liability.
  • Building’s insurance of an office premises.
38
Q

What happens if a an RICS regulated firm fails to submit an annual return?

A
  • Failure to do so leads to a fixed penalty.
39
Q

What processes do regulated firms need to put in place when handling Clients’ Money?

A
  • A Principal oversees the client money accounting functions.
  • Client money must be kept separate and clearly identifiable with the word ‘client’ included in the bank account name.
  • Clients must always have access to funds.
  • The account must not be overdrawn.
  • Maintain client ledgers and provide a running balance.
  • Ensure accounting systems are secure.
40
Q

What are the different types of client money accounts?

A
  • General accounts hold money for more than one client.
  • Discrete accounts reference a single named client.
41
Q

What is meant by the term Negligence?

A
  • Negligence is a failure to provide the duty of care that is owed to the client.
42
Q

What can result from a breach of a duty of care?

A

If it is breached due to Negligence a claim may arise resulting in damages being paid or a Professional Indemnity Insurance claim.

43
Q

What is a duty of care?

A
  • A duty of care is a professional responsibility to ensure that another party does not suffer unreasonable harm or loss.
  • A duty is owed to all clients and 3rd parties using reasonable skill and care.
44
Q

Tell us about the Merritt V Babb case law?

A
  • A surveyor was sued for negligence by a former client.
  • Because the surveying firm was no longer in existence, the individual surveyor was pursued for damages successfully.
  • Highlights the importance of having run-off cover in place for all previous employees.
45
Q

What limitation periods are associated with underhand and deed forms of contract?

A
  • 6 years when executed under hand.
  • 12 years when executed as a deed.
46
Q

What must a complaints handling procedure include?

A
  • Names and contact details of the nominated investigating person must be stated.
  • The complaint must be investigated within 28 days.
  • All complaints, their progress and outcomes must be recorded.
  • The process must include a redress mechanism
47
Q

What is Stage 1 of the RICS model form Complaints Handling Procedure

A
  • Stage 1 is consideration of the complaint by a senior member of the firm or the complaints handling officer.
  • Must be free of charge in the first stage.
48
Q

What is Stage 2 of the RICS model form Complaints Handling Procedure

A
  • Stage 2 if unresolved, 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.
49
Q

What is an independent redress scheme?

A
  • It is a consumer scheme designed to handle small issues that would be disproportionally expensive to take to court.
  • If the scheme judges in favour of the complainant, it is binding.
  • If it judges in favour of the firm, the complainant can escalate the matter to court.
  • RICS firms must specify which redress scheme they want to use, it could be an ombudsman, arbitration or sometimes adjudication.
  • If the complaint relates to a large amount of money or if the complainant wishes so, he can take the matter to court.
50
Q

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

A
  • Acknowledge receipt and forward to designated complaint handler, providing additional information as required.
  • If in doubt I would inform my companies Professional Indemnity insurance providers immediately.
51
Q

What is the ‘Clients’ Money Protection Scheme’?

A
  • This is a money protection scheme operated by the RICS.
  • It contains provision for clients to be reimbursed their direct loss of funds when using an RICS regulated firm.
  • This is provided through an RICS insurance policy.
52
Q

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

A
  • For the purpose of dual authorisation.
53
Q

What are the continuous professional development (CPD) 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 professional competence.
54
Q

How many hours CPD must you do?

A
  • A minimum of 20 hours CPD per calendar year, of which a minimum 10 hours must be formal.
  • Members must undertake learning on the standards expected around RICS Ethics on a rolling 3-year period.
  • All CPD’s must be recorded via the RICS on-line management system.
55
Q

What sorts of activities are considered CPD?

A
  • Must have a clear learning objective relevant to my role.
  • Formal CPD can be web based training with structured assessments, formal seminars, providing training to others where research and preparation is required.
  • Informal CPD can be private reading, internal CPD’s and on the job shadowing.
56
Q

How do you differentiate between the different categories of CPD?

A

I would refer to the RICS CPD Decision Tree.

57
Q

What types of articles do you read?

A
  • I subscribe to the new print versions of RICS Modus journal.
  • I also keep up to date via the RICS website, Building Magazine, BCIS and NBS updates.
58
Q

What recent article have you read from the RICS?

A
59
Q

How do you keep up to date with topical issues?

A
  • My colleagues and I regularly share CPD opportunities to the relevant group email address.
  • I am on the mailing list for several CPD providers.
  • I undertake regular web research on key topics relevant to my field of surveying.
60
Q

What is your CPD strategy?

A
  • I complete an annual QS role assessment evaluating my strengths and weaknesses.
  • For example, last year I scored low on my knowledge of lifecycle and whole life costing.
  • I therefore build my CPD strategy around these weaknesses, current topics and personal interests.
61
Q

What does PII stand for?

A
  • Professional Indemnity Insurance.
62
Q

What is the purpose of Professional Indemnity Insurance?

A
  • To provide financial cover in the event a client suffers financial loss as a result of a breach of professional duty e.g. neglect, errors or omissions.
63
Q

What benefits does PII provide for the professional?

A
  • The professional is protected from financial losses.
  • The firm does not have to meet the claim from their own assets and resources.
64
Q

What benefits does PII provide for the client?

A
  • They are able to recover their financial losses.
65
Q

On what basis is PII underwritten in the UK?

A
  • On a claims made basis.
66
Q

What does ‘claims made basis’ mean in relation to PII?

A
  • The policy that is in place at the time the breach is discovered is responsible for providing the indemnity, not the insurance policy in place when the breach was made.
67
Q

What are the requirements regarding Professional Indemnity Insurance set by the RICS?

A
  • The policy cover must be made on an ‘each and every’ claim basis.
  • The RICS sets out the minimum levels of indemnity.
  • The RICS sets out the maximum levels of uninsured excess.
  • Run off cover must be in place for at least 6 years.
  • The policy should include cover for past and present employees, directors and partners.
68
Q

What are the new RICS minimum levels of indemnity?

A

Prev year turnover £100k - £250k min limit of indemnity
Prev year turnover £101-200k - £500k min limit of indemnity
Prev year turnover £201k - £1m min limit of indemnity

69
Q

What are the new RICS Maximum levels of uninsured excess?

A

*Prev year turnover £10m or less - Greater of 2.5% of the sum insured, or £10k
*Prev year turnover £10m and above - No limit set

70
Q

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

A
  • Keep full and detailed records of meetings and conversations.
  • Record recommendations and advice given.
  • Use proper letters of engagement, scope of services and terms of engagement.
  • Don’t advise on a specialism outside your field of experience.
  • Use RICS guidelines.
  • Avoid poor management and excessive workloads.
71
Q

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

A
  • For you to notify them and comply with any conditions & procedures set out in the insurance policy.
72
Q

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

A
  • An estimate that is incorrect in itself will not provide the client with a right of redress.
  • The client must demonstrate that the QS warranted the accuracy of the estimate or that it was incorrect due to a lack of reasonable skill and care.
  • It could have been incorrect due to reasons outside their control for example market conditions or an item referred to in their exclusions.
73
Q

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

A
  • Request clause limiting the appointment to reasonable skill and care only.
  • Ensure run off cover is in place.
  • Execute appointment under hand.
74
Q

What are the main elements included within a fee proposal?

A
  • Terms and conditions.
  • Scope of services.
  • Exclusions.
  • Assumptions.
75
Q

If you put together a fee proposal, but a couple of months into the job you realise that you have under forecasted your resources, would you go back to the client and ask for more money?

A
  • If project requirements such as services, scope or value have increased then I would go back to client and request a fee increase.
  • If the scope of works had remained the same, this highlights a mistake within our fee bid and the additional work would need to be carried out without reducing the level of service being offered and without requesting additional fees from the client.
76
Q

Once you and your client agreed the services that are to be provided verbally what would you do next?

A
  • Follow up with a formal letter which includes the terms and conditions, fees and scope of services that are to be provided.
77
Q

If the client gives you a lump sum fee before going on holiday, what would you do?

A
  • I would place the funds in a separately identified client account and agree a drawdown of monies against the services being provided with the client.
78
Q

Tell me what you understand about conflicts of interest?

A
  • Where someone in a position of trust has competing personal or professional interests making it difficult for them to fulfil their duties impartially.
  • Chartered Surveyors are obliged to make clients aware if a conflict of interest arises.
79
Q

How could the conflict of interest be managed internally if two separate departments were working for the same client?

A
  • Separate geographical locations and secure office and data storage would also need to be provided.
  • Staff could also sign up to confidentiality or non-disclosure agreements.
    • I could put in place procedures to ensure exclusivity of staff.
  • This would avoid any cross over of information between the departments.
  • I would also ensure that there are separate communication lines into the client.
  • I would also need to monitor the potential conflict and keep the client updated on progress.
80
Q

If the client was insistent that you worked for them despite an existing conflict of interest, how would you proceed?

A
  • I would ensure the client understood the conflict of interest and was aware of the risks of impartiality.
  • I would ensure the client gave their informed consent in writing.
  • Following the appointment I would agree working procedures to manage the conflict of interest with the client and the teams involved.
81
Q

What are the offences covered under the Bribery Act?

A
  • The offences are:-
    o Making a bribe.
    o Receiving a bribe.
    o Bribery of a foreign public official.
    o Failure of a corporate entity to prevent bribery on its behalf.
82
Q

To whom does the Bribery Act apply?

A
  • The legislation applies to all UK Entities and includes associated Persons for example sub-consultants and external advisors.
83
Q

What are the six principles of prevention companies should put in place in relation to the Bribery Act?

A
  1. Proportionate Procedures.
  2. Top Level Commitment.
  3. Risk Assessments.
  4. Due Diligence.
  5. Communication.
  6. Monitoring & Review.
84
Q

Under the Bribery Act, under what circumstance is a facilitation payment permitted?

A
  • The only circumstance in which it is OK to make a facilitation payment is when you are under duress.
  • For example if there is a real and present risk or danger to “life, limb or liberty”.
  • If you or your companions are under immediate physical threat.
  • You should put safety first, make the payment and report the matter immediately.
  • Or as soon as is practicable to your manager or your ethics compliance contact.
85
Q

You are attending a Main Contractor organised business conference where it is announced the you have been randomly selected as the winner of this months prize draw. Its an i-pad air. How would you act in this scenario

A
  • I would be extremely uncomfortable accepting the prize in this scenario.
  • The prize is of a significant value and could be interpreted as a bribe.
  • Furthermore due to working on a project with the Main Contractor at the time of this scenario, accepting the prize would have been highly inappropriate and could be interpreted as having an affect on my business conduct during the project.
  • I would respectfully decline the prize and suggest that this is made as a charitable donation to a charity of the Main Contractor’s choice.
  • I am aware that bribes are commonly distributed as random prizes and due to the seriousness of this incident I would report this to my line manager.
86
Q

You receive an invite to attend the Theatre with some members of your Project Team but they dropped out due to illness at the last minute, would you still attend?

A
  • In the first instance I would declare this hospitality on my companies’ gifts and hospitality register.
  • Assuming the invite was approved and I was authorised to attend, I would need to decline the invite due to the Project Team dropping out.
  • Since they won’t be present, this will not be a genuine business event.
  • Consequently, I would decline this hospitality at the Project Team’s expense.
87
Q

A contractor invites you to lunch to a restaurant and advises they’ve got two Michelin stars and a wine list second to none. They say they are keen to discuss the details of their tender they are about to submit for the project you are working on. How would you respond?

A
  • Going to what sounds like a lavish lunch paid for by a bidder in the middle of a tender process is against Company policy and could be an offence under the UK Bribery Act.
  • If this were the first time, it would be OK just to decline and explain that such an invitation is inappropriate.
  • However if this supplier is persistent, there is a red flag in that he wants to discuss things that he cannot put in writing, so we should report this infringement.
88
Q

What is your understanding of informed consent?

A

Occurs when a party who might be adversely affected by a conflict of interest acknowledges the existence of that risk but still agrees to proceed with the assignment.

89
Q

What is a certificate of non-collusion?

A

Declaration intended to prevent corruption in the tender process.

90
Q

What are new RICS standards document categories?

A

Practice information and Professional Standards

91
Q

What are the RICS Professional Standards?

A

Set requirements for competent and ethical practice e.g. existing professional statements and guidance notes.

92
Q

What are RICS Practice Information?

A

Provides advice or practice support to RICS members and firms e.g. processes, toolkits.

RICS APC (14 decks)

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