Ethics, Rules of Conduct & Professionalism Flashcards
Background of RICS
- Founded in 1868
- Present structure of RICS created by Agenda for Change, 1998
- Royal Charter, granted by Privy Council
- bye-laws set out by the governance of the institution
Membership (and levels)
1340,000 qualified members 4 levels of membership - FRICS (5+ years MRICS, leadership role, professional/technical achievement, academic achievement or raising profile of RICS - need portfolio of prof achievement) - MRICS - AssocRICS - Trainee/Student
RICS Governance Structure
Awarded Royal Charter by Privy Council
Governing Council runs RICS, provides mgmt and strategic dirrection
Regulatory Board, Audit Committee and Management Board report to Governing Council
17 specialist professional groups covering property, land and construction (each group has elected board and is responsible for outlining standards of competence/practice
UK Structure
4 National Associations 12 Regional Boards Local Associations CEO - Sean Tompkins President - Timothy Neal President Elect - Kath Fontana
Role of RICS
Accountable to both members and the public
It is involved in policy influence and political engagement
Undertakes regular market surveys
RICS 3 main roles:
1. maintain highest standards of education and training
2. Protect consumers through strict regulation of professional standards
3. Be leading source of information and independent advice on land, property, construction and associated envrionmental issues
Benefits of being a member status, recognition, market advantage, knowledge, network
RICS Global Professional and Ethical Standards, 2015
- Act with integrity (honesty, transparency, respecting confidential information, not allowing conflicts of interest, not accepting bribes)
- Always provide a high standard of service (act within scope of competence and do work to high standard)
- Act in a way that promotes trust in the profession (positive and professional, fulfill obligations)
- Treat others with respect (politeness and consider cultural sensitivities)
- Take responsibility (be accountable for your actions)
Importance of Ethics
Acts as anchor to appropriate behaviour.
Ensure consistency and clarity irrespective of changing factors such as state of economy or business practices in different market places.
Promotes the profession as a whole.
Supporting information: RICS Decision Tree, case studies of scenarios, RICS Regulation Confidential Hotline
International Ethics Standards, Dec 2016 (don’t need to learn)
- Published by International Ethics Standards Coalition, promoted by RICS
1. Accountability
2. Confidentiality
3. Conflict of Interest (disclosure, mgmt, avoidance)
4. Financial Responsibility (transparent)
5. Integrity
6. Lawfulness
7. Reflection
8. Standard of Service
9. Transparency
10. Trust
Rules of Conduct for Members, March 2020
PART I
1. Interpretation (member means Chartered or non-charters, honorary or attached)
3. Communication via post, fax, email, telephone, in person
PART II
3. Ethical behaviour (integrity, avoid conflict of interest, avoid any situ that’s inconsistent with professional obligation)
4. Competence (skill, care and diligence)
5. Service (timely, standard)
6. Must comply with CPD requirements
7. Solvency (personal and professional finances to be managed properly)
8. Information to RICS (submit in timely manner and in whatever form Standards and Regulation Board requires)
9. Cooperation (comply with RICS staff and anyone appointed by Standards and Regulation Board
Rules of Conduct for Firms, March 2020
PART I
1. Interpretation
Providing a surveying pervice to the public means acting to provide a service considered by RICS to be within those which are the responsibility of RICS professional Groups to clinets
Contact office means individual designated by the Firm to be main liason point between firm and RICS and person authorised to submit firms annual return
Firm means a) whole or part of any body corporate, b) a partnership, C) LLP, D) unincorporated practice of sole practitioner doing survey or related service, regulated by RICS, e) equivalent in world regions of a-e
2. Communication, RICS will communicate with members by any of the following:
post, fax, email, telephone, in person
PART II CONDUCT OF BUSINESS
3. Professional behaviour (act with integrity, avoid conflict of interest, avoid situ’s inconsistent with professional obligations
4. Competence (due skill, care and diligence and with regard to technical standard expected)
5. Service (expedition and proper regard for standard of service and customer care expected)
6. Training and CPD (necessary procedures in place to ensure all staff are properly trained and competant)
7. Complaints handling (company must have complaints handling procedure and maintain complaints log, including ADR mechanism that is apporved by Standards and REgulation Board)
8. Clients Money (preserve security of clients money entrusted to its care in course of practice or business)
9. Indemnity (all previous and current professional work is covered by adequate and appropriate indemnity cover which meets standards approved by Standards and Regulation Board)
PART III FIRM ADMINISTRATION
10. Advertising (propmote services only in a trthful and responsible manner)
11. Solvency (all finances managed appropriately)
12. Arrangements to cover the incapacity or death of a sole practitioner (a firm that has a sole principal (eg. sole practitioner or sole director in corprate practice) shall have in place appropraite arrangements in the over of sole practitioners death/incapacity/other extended absences)
13. Use of designations (firms registed for regulation must display in business literature a designation to denote it is regulated by RICS
14. Information to RICS (firm to sumbit in timely manner such information about activities and in such form the Standards and REgulation Board may require)
15. Cooperation (firm shall cooperate fully with RICS staff and any person appointed by Standards and Regulation Board)
Disciplinary Procedures
Self-regulation by RICSActions range from cautions to expulsions or deregistration of Regulated Members
Less serious cases where regulated member admits allegations, Regulated Compliance Order can be used to ensure future compliance
Disciplinary procedure can be triggered by someone complaining to RICS, allegation by client, or because of information estalbished by RICS
3 levels of disclipnary actions: action by head of regulation, disciplinary planel, appeal panel
Common breaches include passing on information shared by a client in a report, repeated failure to communicate, company director failing to pay taxes and continuing to trade knowing the company was insolvent
Disciplanary: Initial Investigation Stage and Penalties
First step: formal investigation by head of Regulation of RICS, who can then initiate one of 3 following actions upon completion of investigation if he considers disciplinary action to be required:
1. Serve and Fixed Penalty Notice (used for breaches of rules relating only to supply of information to RICS)
2. Make a Consent Order (for low level breach, eg accounts regulations which can be easily corrected). It is a written doc that states terms upon which member/firm must take or desist from taking certain actions in a specified time
3. CPD Sanctions (obligation on member to follow CPD requirement)
4. Refer matter to Disciplinary Panel (for more serious breaches, Head of Regulation can consider a hearing is required, 50% of this panel are lay members not RICS members)
Penalties: issue consent order, impose unlimited amount of fine per breach proportionate to offence, impose conditions to continued RICS registration, expulsion from membership, publish results of hearing to Modus RICs website or local newspaper to firm
APPEAL PANEL
considers firm/members appeal against above, reviews decision with regard to evidence previously presented and any representation. Appeal Board can allow appeal and vary penalty imposed. 50% of panel are lay members.
RICS proposing to set up RICS Regulatory Tribunal
International Standards
MANDATORY
- International Valuation Standards January 2020
- International Ethics Standards December 2016
- International Property Measurement Standards September 2019
- International Construction Measurement Standards September 2019
Professional Statements
MANDATORY
- Conflicts of Interest, 2017
- Conflicts of Interest UK Commercial Property Market Investment Agency
- UK Commercial Real Estate Agency, 2016
- UK Residential Real Estate Agency, 2017
- Real Estate Management, 2016
- Property Measurement 2018
- Service Charges in Commercial Property 2018
Practice Statements
MANDATORY
- Surveyors acting as Expert Witness, 2014
- Home Buyer Report, 2016
Guidance Notes
VOLUNTARY
- Complaints Handling 2016
- Contractors Basis of valuation of rating purposes 2017
- Surveying Safely 2018
- Rating Appeals 2017
Codes of Practices
MANDATORY/GOOD PRACITCE AS PER EACH
- Rating Consultancy Code of Practice 2017