Ethics, Rules of Conduct & Professionalism Flashcards
1
Q
What are the 5 future foundations of the RICS?
A
- Vision
- Mission
- Values
- Strategic Goals
- A World Class Organisation
2
Q
Starting a practice - Statutory compliance
A
- Requirement to disclose business name
- Disability and discrimination compliance - Equality Act 2010
- Financial service compliance - Financial Services and Markets Act 2000, Financial Services Act 2012
- Bribery Act 2010 compliance
- Appoint a Money Laundering Reporting Officer - Money Laundering, Terrorist Financing and Transfer of Funds Regulation 2017
- Health and Safety compliance - H&S at Work Act 1974
- Asbestos Register - Control of Asbestos Regulations 2012
- Fires Safety compliance - Fire Safety Act 2021
- Register for Data Protection - GDPR and Data Protection Act 2018
- Estate Agency Compliance - Estate Agents Act 1979, Consumer Protection Regulations 2008, Misrepresentation Act 1967
- Inform HMRC for VAT and Tax registration - VAT threshold = £90k p.a.
- Ensure compliance with current employment law - minimum wage, working houses, stakeholder pensions etc
Ensure insurance compliance for employer and public liability
3
Q
Closing a practice - RICS compliance
A
- Inform RICS of retirement / closure and deregister
- Ensure clients are informed at the earliest possible opportunity and handover arrangements are made to a new firm
- Return any monies held by clients to their own accounts
- Inform insurers and procure professional indemnity insurance run-off cover for a minimum of 6-years from the expiry of the policy in force at the time of cessation in accordance with RICS requirements
Retain a copy of the client files and records for a minimum of 6 years
4
Q
What is a bribe?
A
The giving, offering, promising or receiving of an advantage, such as a payment, gift or service in exhange for an action which is illegal or a breach of trust
5
Q
What are the 6 principles of the Bribery Act 2010?
A
- Proportionality
- Top Level Commitment
- Risk Assessment
- Due Dilligence
- Communication
- Monitoring and Review
6
Q
What are the 4 offences of the Bribery Act 2010?
A
- Giving / offering a bribe
- Receiving a bribe
- Bribing a foreign public official
- Failing to prevent a bribe
7
Q
What are the 5 Rules of Conduct
(2021)
A
- Members and firms must be honest, act with integrity and comply with their professional obligations and obligations to the RICS
- Members and firms must maintain professional competence and ensure that services are provided by competent individuals
- Members and firms must provide good quality and diligent service
- Members and firms must treat others with respect and encourag diversity and inclusion
- 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
8
Q
What is the role of the RICS?
(3)
A
- To maintain the highest standards of education and training
- To protect consumers through strict regulation of professional standards
- To be the leading source of information and independent advice on land, property, construction and associated environmental issues
9
Q
What are the benifits of being an RICS Member?
(5)
A
- Status
- Recognition
- Market Advantage
- Knowledge
- Network
10
Q
What is a conflict of interest?
A
When a members or firms independence and impartiality is threatened due to the existence of a conflict between the two parties
11
Q
What are the different types of conflicts of interest?
(3)
A
- Party - work on the same of related instruction for two different parties
- Own Interest - A personal interest
- Confidential Information - Work between two parties that is confidential
12
Q
What is the RICS Client Money Handling policy?
A
- Client accounts must be kept separately and be clearly identifiable
- The word ‘client’ is on the back account and cheque book
- A client must be able to have their monies on demand
- Regular bank reconciliation checking that payments received are transferred to the bank accounts and expenditure records are checked at least monthly
- Accurate records are kept with a running balance available
Annual audit and reporting obligations by certified accountant employed by the RICS are met
13
Q
What is Informed Consent?
A
Can only be given in writing if the person explaining the position to them is entirely transparent about any material factors and sure that the party affected understands what they are doing
Should only seek informed consent if satisified that all relevant parties are best served by doing so
14
Q
What is contained within an RICS Annual Return?
A
- Type of business and staffing details
- statutory regulated activities
- nature of clients
- complaints handling procedure details and records
- professional indemnity insurance details
- whether the firm holds clients money
15
Q
What is Diversity?
A
Who we are as humans. We are all diverse, from the colour of our skin to our education, from our religious beliefs to our value systems and so much more. Some aspects of our diversity are clearly visible while others are less obvious. Much of who we are as individuals is hidden below the surface
16
Q
What is Equity?
A
Recognises that not all employees will have been given an equal chance either growing up or as they entered the workplace, while equality in the workplace provides employees with equal opportunities (one size fits all). Equity seeks to address that imbalance by ensuring a person has the right tools and support to fulfil their potential whatever their starting poin
17
Q
What is Inclusion?
A
Part of a workplace’s culture and is a choice to include or exclude people from conversations, projects or events. By taking positive inclusive actions we can make people comfortable so they can be their whole selves at work
18
Q
Whats the difference between Equality and Equity?
A
Equality means treating everyone the same, while equity means treating everyone fairly, recognizing that people have different needs and circumstances. Equality provides the same resources or opportunities to everyone, regardless of individual needs. Equity, on the other hand, recognizes these differences and allocates resources and opportunities to ensure everyone has a fair chance to succeed
19
Q
What are some example behaviours for Rule 1?
A
- Members and firms are open and transparent with clients about their fees and services
- Members and firms act to prevent others being misled about their professional opinion
- Members and firms do not take unfair advantage of others
20
Q
What are some example behaviours for Rule 2?
A
- Members and firms only undertake work that they have the knowledge, skills and resources to carry out competently
- Members and firms supervise any employees undertaking work for them and ensure that these employees have the necessary knowledge, skills and resources to do their tasks competently
- Members and firms check that subcontractors have the necessary knowledge, skills and resources to do their tasks competently
21
Q
What are some example behaviours for Rule 3?
A
- Members and firms understand clients’ needs and objectives before accepting any professional work
- Members and firms communicate with clients and others clearly and in a way they can understand
- Members and firms understand the risks and benefits of using relevant technology
22
Q
What are some example behaviours for Rule 4?
A
- Members and firms work cooperatively with others
- Members and firms do not bully, victimise or harass anyone
- Members and firms respect the rights of others and treat others with courtesy
23
Q
What are some example behviours for Rule 5?
A
- Members and firms respond to complaints made against them promptly, openly and professionally
- Members and firms manage their professional finances responsibly
- Members and firms do not dissuade complainants from approaching an alternative dispute resolution provider, RICS or any other regulatory body
24
Q
What are the PII requirements for firms?
A
Turnover less than £100k = £250k
£100,001 - £200k = £500k
£200,001 + = £1m
25
What is a firms maximum uninsured excess?
Over £10m turnover = no set limit
26
What does RICS stand for?
Royal Institution of Chartered Surveyors
27
When was the RICS founded?
1868
28
When did the RICS receive its Royal Charter?
1881
29
Who is CEO of RICS?
Justin Young
30
Who is Presdient of RICS
Nick Maclean (acting)
Justin Sullivan temporarily stood down
31
Why has Justin Sullivan temporarily stood down?
Due to acting as an expert witness for the seller in High Court proceedings regading the moth-infested £32.5m Notting Hill house.
Had flawed evidence and an unwillingness to make sensible conclusions. Team had prepared report, he was unfamiliar with info.
Referred himself to Standards and Regulation Board requesting an independent regulatory review
32
What are the minimum run-off cover requirements for firms ceasing to trade?
£1m limit for 6 years
Policy to be in force at time of ceasation
33
Starting a practise - RICS compliance
* Inform RICS of new practice by completing a Firm Details Form
* Appoint a Responsible Principal for all RICS communication (previously known as the Contact Officer)
* Register with RICS for regulation of the firm
* Arrange PII and send details to RICS
* Set up client money handling procedures and a protection scheme
* Obtain RICS approval for CHP
* Set up complaints log
* Appoint Complaints Handling Officer
* Use logo kit from RICS for all practise material to comply with the designation 'Regulated by RICS'
* Plan for succession / future running of business if a sole practitioner
* Ensure CPD logged online to the RICS CPD Management System and set up staff training plan
Ensure completion of an online RICS Annual Return at the end of each year
34
What is a vulnerable person?
Someone who agents believe requires special consideration or treatment due to physical, mental, or emotional impairment, or for any other reason
35
How would you deal with a vulnerable person?
Should prioritize their well-being and ensure they are treated with respect and dignity. If a person is deemed vulnerable, RICS members should postpone any work until a support person is present, offer clear and accessible information, and consider potential risks and the need for professional guidance
36
Who polices bribes?
The Serious Fraud Office
37
What are the penalities for bribery?
Up to 10 years imprisonment and / or unlimited fine
Companies = unlimited fine
38
What was the purpose of the Bichard Review 2022?
To clarify the purpose of the RICS, including its responsibility to act for the public advantage; make recommendations on its governing structure to deliver that purpose; and provide proposals for the incoming leadership and governing body of the future culture and strategy of the Institution
39
How many reccomendations did the Bichard Review 2022 set out and what were the key areas?
36
1. Renewed and increased focus on the public interest remit of RICS, inc. Royal Charter and creating a Public Interest Panel
2. Maintaining self-regulation through greater independence for regulator functions
3. Increased focus on diversity and inclusion across the profession and within RICS
4. Empowering and enabling members through greater support for regional boards, alongside member engagement with a renewed focus on younger members
5. Undertaking an independent review of RICS governance and effectiveness at delivering against its Charter for the public advantage once every five years
6. A new simplified, clear, accountable governance structure
Showing greater leadership on issues that matter most to society, such as sustainability and climate change
40
What is the ethics decision tree?
An ethical framework of questions to help members when facing situations where they are asked to act in a potentially unethical manner or situation
41
CPD requirements
Minimum 20 hours per year - including minimum 10 hours of formal, completed by 31st December and recorded online by 31st January
Formal = structured learning with clear learning objectives and outcomes
CPD decision tree
42
What is CPD?
A commitment by RICS members to continually update their skills and knowledge in order to remain professionally competent
43
What are the levels of Disciplinary Procedures?
(3)
1. Action by Head of Regulation
2. Disciplinary Panel (drawn from Independent Regulatory Tribunal)
3. Appeal Panel
44
What are the 4 actions the Head of Regulation can initiate if deemed neccessary?
1. Serve a Fixed Penalty Notice
2. Make a Regulatory Compliance Order
3. Refer the matter to a single member of the Regulatory Tribinal for consideration
4. Refer the matter directly to the Disciplinary Panel
45
What is the Appeal Panel?
- Can consider a members or firms against review of a decision relating to the above levels of disciplinary review
- Will review the decision made having regard to the evidence previously presented and any new representations. The Appeal Panel can allow the appeal and vary the penalty previously imposed
- Membership of this panel includes lay members
46
ToE
Must be in writing - the clients agreement to proceed on the proposed fee basis, payment of expenses, and a copy of the firms CHP is available upon request.
3 steps to follow:
1. Check professionally competent
1. No conflicts of interest or personal interests
1. Confirm terms of engagement in writing and get written approval from the client BEFORE you start work on the instruction
47
What are Terms of Engagement?
A written record of the agreement between the client and the firm, in order to avoid doubt and confusion. They should be held with the working papers
48
Information Barriers
- Must be robust enough that there is no chance of information passing between two parties
- Must take 'reasonable steps' to operate an effective barrier
- The surveyors acting on the two sides must be different and must be physically separated, in different buildings or floors with different support teams
- There is a virtual IT barrier
- All information regarding the instruction is securely stored
49
RICS CHP Requirement
For all firms to have CHP in line with RICS Rules of Conduct 2021
CHP should be given to the client at same time as ToB
Should notify PII provider when a complaint arises as it could lead to a claim for negligence
A complaints log book must be kept to show details, progress and outcome of all complaints
Firms must have an RICS approved ADR mechanism in their CHP
50
Stage One CHP (In House)
* CHP details should be provided whenever a complaint is received from a valid complainant who the firm owes a duty of care
* The procedure must be quick, clear, transparent and impartially implemented
* Details of the nominated person who will investigate the complaint (The Complaints Handling Officer) must be stated as the person to be contacted in the first instance
* The complaint must be made in writing
* Procedures and strict timescales for the investigation of the complaint should be recorded
* A complaint should be acknowledged within 7 days and investigated within 28 days
51
Stage Two CHP (ADR)
* If the complainant is not happy with the review - stage two using an independent redress scheme that the firm has chosen to use
* The name of the relevant appropriate redress mechanism must be provided to the complainant such as The Centre for Effective Dispute Resolution (CEDR), The Property Redress Scheme and the RICS Dispute Resolution Service
52
What is the purpose of PII?
Mandatory for surveyors working in practise
Protects clients, surveyors and third parties against claims of negligence when a duty of care is breached and a claim for negligence arises
All policies must be underwritten by an RICS approved insurer, as found on the RICS website
53
How can you avoid a claim of negligence?
* Clearly understand clients objectives and confirm precise instructions in writing in the ToE
* Ensure you are competent to undertake the instruction - do not operate outside area of expertise
* Undertake the work in accordance with the relevant RICS Professional Standard / Guide
* Make detailed file notes and take photographs
* Ensure records are kept of all communications and of what advice has been given
* Keep up to date with market knowledge and legislation and undertake and record CPD
* Cap the professional liability excess on your PII policy in the ToE
54
What is Money Laundering?
When proceeds of criminal activities are disguised or converted and then realised as legitimate assets
55
What are Estate Agents legal obligations under AML?
* Notify HMRC if individual properties are let for more than 10,000 Euros / month
* Individuals and businesses need to be approved and remain registered by HMRC in order to trade
56
What are the penalties associated with AML?
* Maximum 14 years prison sentence and / or unlimited fine for assisting with money laundering
* Maximum 5 years prison sentence and / or unlimited fine for tipping off a person that they are under suspicion for money laundering or for failing to report suspicion
57
What RICS Professional Standard coverd AML?
RICS Professional Standard: Countering bribery, corruption, money laundering and terrorist financing 2019
58
What RICS Professional Standard covers Client Money Handling?
RICS Professional Standard: Client Money handling 2019
59
What RICS Professional Standard covers Conflict of Interest?
RICS Global Professional Standard - Conflicts of Interest 2017
60
What is Appendix A in the Rules of Conduct 2021?
1. Comply with CPD requirements
2. Cooperate with RICS
3. Promptly provide all information reasonably requested by the Standards and Regulation Board, or those exercising delegated authority on its behalf
61
What RICS Guidance covers PII?
RICS Professional Indemnity Insurance Requirements 2024
62
What RICS Guidance covers the Regulation of Firms?
RICS Rules for Regulation of Firms 2022
63
Why is the RICS good for firms?
* Confidence
* Professionalsim
* Security
