Ethics, Rules of Conduct & Professionalism Flashcards
What is the motto of the RICS in Latin?
‘there is measure in all things’
When was the RICS founded?
1868
What year was the royal charter granted to the RICS?
1881
What are the Bye Laws and Regulations related to RICS?
Ten Bye Laws ratified by UK Privy Council and Ten Regulations Approved by RICS Governing Council. Conduct comes under Bye Law 5 and Regulation 5
What is the mission statement of the RICS?
- Qualify and equip members for professional standards
- Promote and enforce standards
- Lead solutions to major challenges in the built environment
How is the RICS structured?
- Self-regulated and internally monitored
- Bye-Laws determine regulation
- Governing council manages strategy
- Regulatory board, audit committee, and management board are beneath the governing council and execute strategy
What are the 5 principles of better regulation according to RICS?
- Proportionality
- Accountability
- Consistency
- Targeting
- Transparency
What is the difference between ethics and rules?
- Ethics are a set of moral values
- Rules of conduct are a framework we work to
What is Rule 1 of the new rules of conduct 2022?
Members and firms must be honest, act with integrity, and comply with professional obligations
What is Rule 2 of the new rules of conduct 2022?
Members and firms must maintain professional competence and ensure services are provided by competent individuals
What is Rule 3 of the new rules of conduct 2022?
Members and firms must provide a good quality diligent service
What is Rule 4 of the new rules of conduct 2022?
Members and firms must treat others with respect and encourage diversity and inclusion
What is Rule 5 of the new rules of conduct 2022?
Members and firms must act in the public interest and take responsibility for their actions
What are the professional obligations of RICS members?
- Comply with CPD requirements (20 hours annually, 10 formal)
- Members must cooperate with RICS
- Members must provide information requested by the standards and regulations board
What are the professional obligations of RICS firms?
- Publish complaints handling procedure
- Ensure adequate professional indemnity cover
- Make arrangements for work continuity in case of incapacity
- Cooperate with RICS
- Provide information requested by the standards and regulations board
- Display RICS designation on business literature
- Report required matters to RICS
What framework does the RICS provide for client services?
Rules of conduct to ensure clients receive a set level of service
What procedures must be followed when setting up a new practice?
Day 6 Test
* Contact RICS for guidance and start up pack
* Inform RICS and register for regulation
* Appoint a contact officer
* Prepare a complaints handling procedure
* Obtain professional indemnity insurance
* Abide by rules of conduct
* Use ‘regulated by RICS’ designation
What processes do regulated firms need for handling clients’ money?
- Preserve security of clients’ money
- Link money clearly to a client
- Hold money in a separate account
- Maintain secure accounting systems
What is run-off cover?
Insurance to cover claims after a firm has ceased to exist
Merrit v Babb 2001 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.
What must a complaints handling procedure include?
- Model form provided by RICS
- Redress mechanism
- Clear, quick, transparent process free or charge at stage 1
- Name and contact details of the investigating person
- Acknowledgment within 7 days
- Investigation within 28 days
- Records must be kept
- Notification to PI insurers
- Process must have 2 stages as a minimum. Stage 2 must be referred to an independent third party
What is the independent redress scheme?
A consumer scheme for handling small issues that are expensive to take to court.
Redress scheme can be ombudsman, arbitration or adjudication.
What is the clients money protection scheme?
Operated by RICS to reimburse public losses when using an RICS regulated firm
What is required for CPD?
Must have a clear learning objective
What are the new PII requirements set by RICS effective from July 2024?
- Level based on firm’s turnover - £100k or less minimum £250k cover. £100-200k minimum £500k. £200k+ minimum £1m
- Policy cover must be on an each and every claim basis
- Run-off cover for at least 6 years
- Policy should include cover for past and present employees
