Ethics, Rules of Conduct & Professionalism

Question 1

When was RICS founded

Answer 1

1868

Question 2

What are the 4 types of RICS memberships

Answer 2

FRICS, MRICS, AssocRICS & Trainee/Student

Question 3

To apply for FRICS, what are the 4 characersistics showing evidence of achievement

Answer 3

1) 5 or more years at MRICS
2) A Leadership Role
3) Professional / technical achievement
4) academic achievement or raising profile of RICS

Question 4

Who is the current RICS chief executive officer

Answer 4

Justin Young - 5th July 2023

Question 5

Who is the current RICS President

Answer 5

Justin Sullivan - 1st January 2025

Question 6

What does RICS stand for

Answer 6

Royal Institution of Chartered Surveyors

Question 7

What are the THREE main roles of the RICS

Answer 7

1) Maintain highest standards of education and training
2) Protect consumers through strict regulation and professional standards
3) To be the leading source of information and independent advice in the field

Question 8

What is the Bichard Review

Answer 8

An RICS commissioned review by Lord Birchard as a result of the Independent Review of internal governance failing within RICS carried out by Alison Levitt in 2021

Question 9

Name some of the 7 recommendations of the Review

Answer 9

1) A renewed and increased focus on public interest
2) Increased focus on diversity and inclussion across the profession
3) Maintaining self-regulation
4) Showing greater leadership on matters affecting society such as sustainability

Question 10

What major challenges are facing the RICS

Answer 10

1) Diversity and Inclusion
2) Ageing workforce who need new members
3) Technology - Use of AI

Question 11

What are the benefits of being an RICS member?

Answer 11

1) Status - credintials provide client confidence
2) Network - Access to range of professionals in the industry
3) Recognition - Progression is the profession
4) Market advantage - RICS status and standards to provide competetive advantage
5) Knowledge - Increased through standards & CPD requirements

Question 12

3 benefits of RICS regulation for Firms

Answer 12

C-P-S
1) Confidence - for clients as regulated firms are monitored by RICS Regulations
2) Professionalism - firms to provide clear, impartial and expert advice
3) Security - Firms have to have a recognised complaints procedure and PII cover.

Question 13

Why must firms who provide surveying services register with RICS

Answer 13

To ensure there is a recognised quality benchmark for all firms, regulation provides ‘gold standard’ of quality control for clients

Question 14

What percentage of a firm’s Principles need to be registered with RICS before they MUST be regulated

Answer 14

50% (If more than 25% they can choose to be regulated)

Question 15

What information is required to be provided by a firm to be RICS regulated - Name 3

Answer 15

1) Type of business and staffing details
2) Name of the Responsible Principle
3) Statutory regulated activities
4) Nature of Clients
5) Complaints handling procedure details and records
6) Professional Indemity Insurance details
7) Whether the firm holds clients money

Question 16

What are the latest Rules of Conduct

Answer 16

The Rules of Conduct 2021 published October 2021 with effect from 2nd Feb 2022. 5 Rules of Conduct for both members & firms

Question 17

What is Rule 1 of the Rules of Conduct 2021

Answer 17

Members & Firms must be HONEST, act with INTEGRITY and comply with their personal obligations, including obligations to RICS

Question 18

What is Rule 2 of the Rules of Conduct 2021

Answer 18

Members & Firms must maintain their Professional Competency and ensure that services are provided by competent individuals who have the necessary expertise

Question 19

What is Rule 3 of the Rules of Conduct 2021

Answer 19

Members & Firms must provide good quality and diligent service

Question 20

What is Rule 4 of the Rules of Conduct 2021

Answer 20

Members & Firms must treat others with respect and encourage diversity and inclusion

Question 21

What is Rule 5 of the Rules of Conduct 2021

Answer 21

Members & 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 22

What is Appendix A of the Rules of Conduct 2021

Answer 22

Sets out professional obligations to be followed by both members & Firms

Question 23

What are responsibilites of members outlined in Appendix A of the Rules of Conduct 2021

Answer 23

1) Members must comply with CPD requirements
2) Cooperate with RICS
3) Promptly provide all information requested by the Standards and Regulation Board

Question 24

What are responsibilites of firms outlined in Appendix A of the Rules of Conduct 2021

Answer 24

1) Publish Complaints handling procedure and maintain complaints log
2) Ensure all work is covered by Professional Indemity Cover
3)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.
4) Cooperate with RICS
5) Promptly provide all information requested by the Standards and Regulation Board
6) 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.
7) Firms must report to RICS any matter that they are required to report under the Rules for the Registration of Firms.

Question 25

What is the aim of the RICS amending their Rules of Conduct

Answer 25

A simpler structure - Made it easier for RICS members & firms to understand rules - Providing more confidence for clients and public Clear Examples - Help members professional judgement - Lists 12 case studies showing real life application Focus on respect, diversity and inclusion Understanding evolving technology Tackling Global Challenges - Including sustainable development & climate change

Question 26

What is the purpose of the Ethics Decision Tree

Answer 26

To provide framework of questions members should ask themselves when facing a possible unethical situation

Question 27

Summarise the key points of the Ethical Decision Tree

Answer 27

- To gather and understand the facts of the matter - Consult appropiate people for advice - Have clear reasoning for your action - Would members be content to have their decisions and actions made public.

Question 28

What is an RICS International Standard

Answer 28

Mandatory document setting globally recognised principles and best practices for professionals

Question 29

What are examples of RICS International Standards

Answer 29

1) RICS Valuation - Global Standards, 2021 (effective 31 Jan 2025) 2) International Property Measurements Standards (IPMS) 2014, 2016, 2018 & 2019

Question 30

What is an RICS Professional Statement

Answer 30

An RICS Professional Statement sets mandatory requirements and best practice guidelines for RICS members and firms

Question 31

What are examples of RICS Professional Statements

Answer 31

- Countering Bribery, Corruption, Money Laundering & Terrorist Financing, 2019 - Conflicts of Interest, Global, 2017 - Real Estate Management, 2016 - Property Measurement, 2018 - Service Charges in Commercial Property, 2018 - Client Money Handling, 2019

Question 32

What is an example of RICS Practice Statements

Answer 32

Surveyors Acting as Expert Witness, 2014

Question 33

What is an RICS Guidance Note

Answer 33

RICS Guidance Notes provide best practice recommendations for RICS members and firms, offering professional advice on specific areas of surveying, property, and construction. They are advisory and not mandatory

Question 34

What is an example of RICS Guidance Note

Answer 34

- Comparable Evidence in Real Estate Valuation, 2019 - Surveying Safely, 2018

Question 35

What are key details which should be included in Terms of Engagement?

Answer 35

1) Client's agreement to proposed fee basis 2) Payment of Expenses (and how calculated) 3) Copy of the firm's complaints handling procedure is available upon request

Question 36

What steps should be taken before commiting to a client's instruction?

Answer 36

1) Check professionally competent 2) No conflicts of interest or personal interest 3) Confirm terms of engagement in writing and get written approval from client before starting work

Question 37

Name some potential resons you would need to decline client's instructions?

Answer 37

1) Not competent - Outside limitations 2) Dont have sufficent facts 3) Client refuses to sign Terms of Engagement or to complete AML checks 4) Conflict of Interest 5) Unethical

Question 38

What is the RICS regulation document on Conflicts of Interest?

Answer 38

RICS Global Professional Ststement on Conflicts of Interest, 1st edition, March 2017 Effective from 1 January 2018

Question 39

What is the pupose of Conflict of Interest Professional Statement?

Answer 39

Provides mandatory rules and best practice guidance to ensure members and firms manages conflicts transparently. Three mandatory princliples are: 1) Avoid conflicts where possible 2) Manage conflicts effectively when they do arise 3) Disclose conflictsd where they cannot be avoided, ensuring informed client consent

Question 40

What is an example of a conflict of interest which has been managed in your firm?

Answer 40

I was involved with being the sole marketing agent on a retail scheme in Liverpool along with my colleague. My colleague also acted for a tenant to obtain premises for their occuptation. The tenant was interested in this specific unit and therefore there was potential for my colleague to act on both sides. My colleague disclosed this information to both clients and removed himself from the situation.

Question 41

What is the RICS document on Complaint Handling

Answer 41

RICS Guidance Note on Complaints Handling, 2016

Question 42

How should a complaint first be dealt with?

Answer 42

Stage 1: - Details of the Complaints Handling Procedure should be issued - Pass details of the nominated Complaints Handling Officer who should be contacted in the first instance. - Complaint must be made in writing - Complaint to be acknoweldged within 7 days and investigated within 28 days.

Question 43

If the person who made the complaint is not happy with the review, what are the next steps?

Answer 43

The matter is to be escalted to the firms Alternative Dispute Resolution (ADR) by using an independent redress scheme of a third party company

Question 44

What are the CPD requirements of a Chartered Surveyor?

Answer 44

1) Members to undertake minimum of 20 hours CPD in a calender year 2) Of the 20 hours, 10 to be formal and 10 informal 3) All members to maintain a relevant and current understanding of RICS RUles of Conduct 4) All members must record their CPD submitting by 31st January each year.

Question 45

What is Professional indemity insurance?

Answer 45

Protects clients, surveyors and third parties against negligence claims when there is a duty of care breached and a claim for damages arisen.

Question 46

What is the RICS document for Professional indemity insurance?

Answer 46

RICS guidance set out in Professional Indemity Insurance Requirement, effective July 1st 2024.

Question 47

What is the situation regarding the RICS President - Justin Sullivan

Answer 47

Justin Suliivan acted as an Expert Witness in a High Court proceedings in there was a Conflict of Interest. Nick Maclean has been appointed as Acting President while the review

Question 48

What is the situation with Justin Sullivan - RICS President

Answer 48

Justin Sullivan acted as an expert witness in a high court proceedings in which there was suspicions of a Conflict of Interest. RICS have appointed acting President Nick Maclean while there is an independent regulatory review.