Ethics, Rules Of Conduct & Professionalism

Question 1

For firms under £10m turnover, what is the maximum excess?

Answer 1

£10k or 2.5%, which ever is largest

Question 2

RICS general requirements for PI

Answer 2

Must be ‘each and every’ basis
Must be fully retroactive
Run off cover
Minimum indemnity based on turnover :
- <£100k = cover £250k
- £100-200k = cover £500k
- >£200k = cover £1m

Question 3

Why was the Levitt report commissioned?

Answer 3

Prior to 2018 treasury management audit, RICS had to extend its overdraft by £3m due to inaccurate forecasting, resulting in ‘no assurance’ verdict of financial reporting procedures

Question 4

What did the Levitt report find?

Answer 4

Power struggle between Management Board and Exec Board

Question 5

What were key Levitt recommendations?

Answer 5

That the RICS governing council have more oversight of dealings in RICS

Question 6

What are the New Rules of Conduct

Answer 6

1. Members and firms must be honest, act with integrity and comply with professional obligations including to RICS
2. Members and firms must maintain professional competence and ensure services are by competent individuals
3. Members and firms must provide good quality and diligent service
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

Question 7

5 ethical standards

Answer 7

1. Integrity
2. High standard of service
3. Promote trust
4. Respect
5. Take responsibility

Question 8

What are RICS bye-laws

Question 9

What is the construction and technology court

Question 10

Who is RICS president

Answer 10

Justin Sullivan since Jan-25 but he has stepped aside so Nick Maclean (President Elect) is filling this role at the moment

Question 11

How is RICS structured

Answer 11

Governing Body presides over standards and regulation board* & RICS board (knowledge and practice committee etc). *not directed by gov council but accountable to

Question 12

What are the rules for members?

Answer 12

1. CPD
2. Cooperate with RICS
3. Provide info to standards and regs board

Question 13

What are the rules for firms?

Answer 13

1. Complaints handling procedure
2. PI to cover past and current
3. Plan for incapacity
4. Provide info to Standards board
5. Cooperate with RICS
6. Display designation to denote regulated by RICS
7. Report to RICS as required for Rules for Registration of Firms