Ethics, Rules of Conduct & Professionalism Flashcards
Level 3
Who became the RICS President for 2025?
Justin Sullivan FRICS
Who is the acting president of RICS due to a high court case?
Nick Maclean
Who is the CEO of RICS?
Justin Young
Who became the Senior Vice President (SVP) of RICS for 2025?
Maureen Ehrenberg FRICS
Who was the president elect of RICS?
Nicholas Maclean
In what year was RICS formed?
1868
RICS was formed under what legal document?
Charter
what are bye-laws?
i) Allows bodies / companies to regulate their own legislation
ii) Skeleton to follow to have a royal institution
iii) Ratified by Privy Council who advise on gov and monarch on how to take for
iv) Regulations – approved by RICS Governing Council
What is the objective of the Royal Charter?
To “maintain and promote the usefulness of the profession for the public advantage”
This emphasizes the commitment to serving the public interest in the profession.
What is the motto of the Royal Charter?
“there is proper measure in all things”
This reflects the importance of balance and ethics in professional practice.
What is the role of the Privy Council in RICS governance?
Approving changes to RICS’s Royal Charter and Bye-Laws
This ensures that any modifications to governance are reviewed at a high level.
What does the Governing Council do?
Sets global strategy and fulfills Royal Charter
The Governing Council is crucial for aligning the organization’s actions with its foundational objectives.
What is the primary function of the RICS Management Board?
Delivering the business plan
This involves implementing the strategies and objectives set by the Governing Council.
What are the responsibilities of the Stds and Reg Board?
RICS’s regulatory functions including prof stds, admission, DRS, Tribunal
This board is essential for maintaining standards and ensuring compliance within the profession.
5 Rules of Conduct
a) Honesty & Integrity - Members and firms must be honest, act with integrity and comply with their professional obligations, including obligations to RICS
b) Competence - maintain their professional competence and ensure that services are provided by competent individuals who have the necessary expertise.
c) Service - must provide good-quality and diligent service
d) Respect - must treat others with respect and encourage diversity and inclusion.
e) Responsibility - must act in the public interest, take responsibility for their actions and act to prevent harm and maintain public confidence in the profession
Give examples of Honesty and Integrity
i) Conflict of interest, gifts, transparency in fees, client money safe, professional obligation (BRIBARY ACT 2010)
ii) Tender for Ilford
Give examples of competence
i) Knowledge, skill, resources, limitations, CPD, legislation, DD, client care
ii) UCEM Courses
Give examples of Service
i) Client’s needs, scope agreed, communication, record keeping, confidentiality, data protection, DPA / GDPR 2018, eco soc and env solutions, AI, locum
ii) Reporting and NDA respect
Give examples of respect
i) Inclusive, collaborative, Equality Act 2010, H&S Act 1974, unconscious bias
ii) organise events and inclusive design
Give examples of responsibility
i) Complaint handling, health and safety, finances, PII, risk,
ii) Ensuring all members wore PPE on Uni visit.
Appendix A explain the members obligations
1) CPD,
2) cooperate with RICS,
3) all info Stds and Reg Board
Appendix A explain the firms obligations
- Complaints – must have a procedure
- PII – all professional work covered by PII
- Sole principal –arrangements for work to continue in event of death etc
- Cooperate with RICS
- Provision – info requested by Board
- Designation – display on literature designation to denote they are regulated by RICS
- Report – report any matter they are required to under Rules for Registration of Firms
Name the 7 Mandatory Prof Statements
a) Rules of Conduct
b) Conflicts of interest – 1st Ed 2017
c) Complaints handling – 1st Ed, 2016
d) Rules for the registration of firms, 7, 2022
e) Client money handling – 1st 2019
i) RICS Client Money Protection Scheme Rules – surveying and agents
f) Countering bribery, corruption, money laundering and terrorist financing - Countering financial crime: Bribery, corruption, money laundering, terrorist financing and sanctions violations 2nd edition, RICS professional standard
g) Diversity, equity and inclusion (DEI) - Webpage
Explain the Complaints Handling Procedure
o Stage 1 – Company Complaints Procedure
- Comp received in writing, consider asap, acknowledge within 7 days, respond within 28 days
o Stage 2 – No resolution (Indep Redress / ADR)
- Complaint to an independent redress provider (approved by RICS) e.g. Centre for Effective Dispute Resolution for consumer and bus to bus or Property Ombudsman – Consumer
What is Gleeds’ complaints handling procedure?
Designated director in each region,
written complaint,
within 7 days to acknowledge circumstances and further comments, within 21 days inform outcome of investigation and actions,
if dissatisfied then contact COO,
if continue to remain dissatisfied then negotiation, or mediation through Centre for Dispute Resolution (CEDR) or mediation procedure of Dispute Resolution Service, if still not then referral to DRS
Registration of Firms - info required
Details, Nature of work, Principal and Employee details incl consultants (membership no.s).
Stds and regs requirements
Professional Obligations
Registration of Firms - what are the professional obligations?
- Complaints handling procedure
- PI insurance cover
- Sole principles (locums) for business cont
- CPD / training for staff
- Use of RICS logo
- Statement of “Regulated by RICS”
- Compliance with legislation and stat undertakings
Registration of firms - Rules for regulation?
Required for regulation
* Surveying service to public
* Reg Area (UK)
* 50% of Principles are MRICS+
Eligible
* Surveying service
* Min of 25% Principles MRICS
* Supported by another reg firm
Reg of firms - responsible principle
Must have one who ensure complies with obligations, appropriate policies and RICS stds, legal obligations, info to RICS is truthful, record failure, contact officer
Obligations of Registration
Comply with RICS Rules of Conduct
Act according to Royal Charter and Bye-laws
Inform head of reg if – finding disciplinary, insolvency, material change, dishonesty, serious prof misconduct, reputational damage
What is the requirements of Valuer Registration?
All valuation to RICS Red Book
Raising Stds – committed to openness and transparency
Public Indemnity Insurance Cover - min levels of cover
Ensure clients are protected from loss (and firms)
Min levels of cover against firms financial turnover
* 100k or less = £250k
* 100k – 200k = £500k
* 200k plus = £1m
Public Indemnity Insurance Cover - max levels of uninsured excess
Max uninsured excess
* Limit of indemnity
o £500k – >2.5% of sum or £10k
o Over £500k – 2.5% of insured sum
Public Indemnity Insurance Cover - details
Retroactive - Past and present employees and work
Underwritten by listed insurer
Run-off cover – post ceasation - £1m for 6 years – plus retirement
Assigned Risks Pool (ARP) – if no PII is available on the market
What sort of information do registered firms have to send to the RICS annually?
- Type of business and staffing.
- Nature of clients.
- Complaints handling procedures details and records.
- PI insurance details.
- Whether the firm holds clients’ money.
What do you need in place in order to start a company?
1) Contact the RICS for a company start up pack.
2) Inform the RICS and register for regulation.
3) Appoint a contact officer for all RICS communication.
4) Prepare a complaints handling procedure.
5) Obtain insurances: PI, Employer’s Liability, Public Liability, building insurance for the office.
6) Use the designation ‘Regulated by RICS’ on all practice material.
7) Set up a company bank account.
8) Register with Companies House.
RICS’ CPD policy
a) Jan – Dec = 20 hours, at least 10 hours must be formal
b) Understanding of ethics during rolling 3 yr period
Government, legislation and regulation - a) Data Protection & GDPR 2018
– informed, access, rectification, erase, restrict processing, portability, object.
What Government, legislation and regulation is relevant to ethics?
Data Protection & GDPR 2018
Bribery Act 2010
Money Laundering Regulations 2017
Modern Slavery Act 2015
Equality Act 2010
Building Safety Act 2022
What are the key principles of Data Protection & GDPR 2018?
informed, access, rectification, erase, restrict processing, portability, object
GDPR stands for General Data Protection Regulation, which governs data protection and privacy in the EU.
What does the Bribery Act 2010 address?
giving / receiving a bribe, foreign official, not having systems in place
The Bribery Act 2010 is aimed at preventing bribery in business and government.
What are the red flags identified in the Money Laundering Regulations 2017?
client, parties, source of funds, transaction, instructions
These red flags indicate potential money laundering activities.
What is a requirement of the Modern Slavery Act 2015 regarding supply chains?
transparent in supply chains - £36m = modern slavery statement, prosecute
Companies with a turnover of £36 million or more must publish a modern slavery statement.
List the protected characteristics under the Equality Act 2010.
- age
- disability
- gender reassignment
- marriage and civil partnership
- pregnancy and maternity
- race
- religion or belief
- sex
- sexual orientation
The Equality Act 2010 aims to consolidate and simplify anti-discrimination laws.
What does the Building Safety Act 2022 focus on?
increased accountability, duty of care
This act was introduced to improve building safety regulations following high-profile incidents.
Gleeds Anti-Bribery, Corr and Fraud Policy - RICS Professional Statement: Countering Bribery and Corruption, Money Laundering and Terrorist Financing
- Does not prohibit but with prior approval. reasonable, proportionate, and justifiable.
- No rewards or encouragement. No cash, avoided at contracts, no cultural offence but donate to charity
- Written in register both given or received.
- Whistleblowing concerns
Can you give an example of when you have applied the principles of each standard?
- Honest and Integrity – Conflict of interest checks and flagging of tender
- Competency – partake in UCEM courses
- Service – Agree fee
- Respect – Comply with South African law in diversity
- Responsibility – Seminar presentation, negotiation of PI
RICS Ethics Decision Tree
- Do I have sufficient facts on the issue?
- Is it legal?
- Is it in line with RICS Professional and Ethical Standards?
- Have I consulted with appropriate people to make an informed decision?
- Do I have clear reasoning in reaching my decision? Is the decision informed?
- Would I be content for my actions to be made public?
What changes or new initiatives have recently occurred in the RICS?
- Technical Partnership
What is CSR?
Corporate Social Responsibility - Shows a firm’s compliance to laws / ethical standards / international norms
CSR is essential for businesses to demonstrate their commitment to ethical practices and social accountability.
What is the procedure in case of a breach of a rule of conduct?
Investigate / Disciplinary Procedures – Head of Regs – impose CPD / Regulatory Tribunal = unlimited fines and expulsions
This process ensures accountability and adherence to professional standards within the organization.
What three actions can be imposed after the end of the investigation stage?
- Fixed penalty – fine if not certain info
- Consent order – cannot undertake certain actions for time and pay a fine
- Disciplinary panel – 8 RICS and non-members, 14 days.
These actions provide a range of responses depending on the severity and clarity of the misconduct.
Who can use designations?
- A sole practitioner.
- Firms with over 50% partners / directors who are members.
- No partners or directors that have been expelled from the RICS or refused reinstatement.
This ensures that only qualified individuals and organizations can represent themselves with professional designations.
What are the biggest issues facing the RICS today?
- housing
- skills
- sustainability
Addressing these issues is critical for the future growth and relevance of the RICS.
What are the big topics within the industry today?
- Fire Safety (Grenfell Report)
- sustainability
- AI
- economic distribution
- planning reform
These topics reflect current challenges and trends that the industry must navigate.
What were the big events or changes in the RICS this year?
- MIPIM – official strategic partner
- Commonhold and Leasehold Reform 2024 – commonhold to become default, leasehold to 990yrs.
- World Built Environment Forum
These events signify important strategic partnerships and reforms impacting the property sector.
What is the Bichard Review?
Governing Council in December 2021, following a recommendation in the Levitt Review that a “wide-ranging examination of purpose, governance and strategy”
This review aimed to enhance governance and ensure that the RICS serves the public interest effectively.
How many recommendations were made in the Bichard Review?
- 36 recommendations – public interest / focus on diversity and inclusion / simplified governance structure
These recommendations focus on public interest, diversity and inclusion, and a simplified governance structure.
Where a firm ceases to trade or becomes unregulated what must you do?
- Complaints handling - Continue to adopt an effective procedure for handling complaints which were made to the firm prior to it ceasing to trade/becoming unregulated by RICS
- Clients’ money - On ceasing to trade – ensure that the security of clients’ money is preserved until all monies have been distributed. In the event of a firm becoming un-regulated by RICS – inform your clients that the monies are no longer covered by the RICS Clients’ Money Protection Scheme.
- Professional indemnity insurance - Maintain run-off cover for a minimum period of six/twelve years. This ensures you are not exposed to claims during the period following ceasing to trade or becoming unregulated by RICS. It is advisable to contact your broker for more detailed advice
What does the Consumer Rights Act 2015 allow?
- 14 day cooling off period
When did the new rules of conduct come into force?
02 February 2022
What are the requirements for complaints handling procedures set by the RICS?
Details of the CHP should be issued to the client at the same time as the Terms of Business.
A complaints log should be maintained.
Firms must include an RICS approved Alternative Dispute Resolution (ADR) mechanism in their Complaints Handling Procedure.
Detail of the Complaints Handling Officer must be stated as the person to contact in the first instance.
The complaint must be made in writing
Strict timescales – a complaint should be acknowledged within 7 days and investigated within 28 days.
If the complainant is not happy with the review, then they can pursue an independent redress scheme.
What are the requirements for continuity for sole practitioners?
Sole practitioners must nominate a locum, effectively another professional who is appointed to ‘stand in’ for the surveyor if they are unable to work.
What matters are required to be reported under the rules of registration for firms?
Inform the head of registration of:
any findings against it by any disciplinary or regulatory body
any insolvency
any material change such as change of business address or a principal within the firm.
What are the new areas of content in the news rules?
Sustainability - to assist in achieving UNSDG
Handling Data - due to increased use of technology and challenge of handling large amounts of data
Diversity and inclusion - not just respect for others, but active encouragement of diversity and inclusion.
What is client money?
Money that an firm holds for or receives on behalf of another person, including money held by a the firm that is not immediately due and payable to the RICS regulated firm.
What do the RICS rules of conduct require when handling client money?
Rule 1
Firms must keep client money safe and have appropriate accounting controls.
What scheme must RICS regulated firms holding client money register with and what protection do these provide?
‘RICS Client Money Protection Scheme for Surveying Services’ provides client money protection in the event that the firm is unable to repay a clients money.
What are the requirements/procedures which should be followed when setting up a client account?
Client accounts must be separately and clearly identifiable
The word ‘client’ and a unique identifier such as the name of the property must be on the bank account
Money in the account must be immediately available to the client on demand
Payment of interest must be agreed with the client and accounts kept in credit
Regular reconciliation checking payment received and made
Accurate records and running balance available
Money can only be withdrawn if properly required.
How should money be paid out of the client account?
used only for that client matters
ensure that as soon as soon as the money is no longer required it is returned to the client
all payment made to or on behalf of the client
when fees area due, send an invoice to the client before withdrawing the funds.
check there are sufficient funds prior to making payment
What are the six main areas of good practice as set out in the RICS Professional Statement ‘Client Money Handling’
Holding client money
Providing information to clients
Receipts of client money
Payment from client account
Accounting records and controls
Compliance
What are the options where a authorised individual is unable or otherwise restricted in carrying out bank account functions due to sickness-related absence?
Additional authorised signatory
Power of attorney in place which delegates authority.
How would you define a conflict of interest and can you give some examples?
In a position of trust has competing personal or professional interests cannot fulfil their duties impartially e.g. two competing clients represented by the same firm
Protect commercially sensitive information: exclusivity of staff, staff confidentiality, physical separation, security of docs
Disclose to each client the possibility, nature and circumstances of the conflict, in writing. Cannot continue unless requested to do so.
How do you identify a conflict of interest?
- Any financial interest
- A personal relationship
- Commercial relationships
- The interests of the firm.
What is Gleeds’ Conflict of Interest?
- What is a conflict – Party (two clients) / Own Interest (shares and contract) / Confidential Info Conflict (act for two clients)
- Carry out conflict of interest check on project opening
- raise to global risk if so who maintains a register – not accept / parties accept / member of staff cant be involved
- Informed Consent if can avoid conflict of interest
- Manage – physical and electronic separation
How would you react when faced with a conflict of interest?
- With openness and transparency
- declare
- stand down
- written permission
Gleeds Anti-Bribery, Corr and Fraud Policy - RICS Professional Statement: Countering Bribery and Corruption, Money Laundering and Terrorist Financing
- Does not prohibit but with prior approval. reasonable, proportionate, and justifiable.
- No rewards or encouragement. No cash, avoided at contracts, no cultural offence but donate to charity
- Written in register both given or received.
- Whistleblowing concerns
