Ethics - SOE Specific Flashcards
What does RICS Rules of Conduct (2021) 1st Edition (PS) outline?
The 5 RICS Rules of Conduct
What are the 5 Rules of Conduct?
- Members and firms must be honest, act with integrity and comply with their professional obligations, including obligations to RICS
- Members and firms must maintain their professional competence and ensure that services are provided by competent individuals who have the necessary expertise
- Members and firms must provide good quality and diligent service
- Members and firms must treat others with respect and encourage 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.
What’s three examples of Rule 1?
Members and firms do not mislead others by their actions or omissions, or by being complicit in the actions or omissions of others
Members and firms are open and transparent with clients about their fees and services
Firms keep client money safe and have appropriate accounting controls.
What’s three examples of Rule 2?
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
What’s three examples of Rule 3?
Members and firms understand clients’ needs and objectives before accepting any professional work.
Members and firms agree with clients the scope of the service to be provided and its limitations, and timescales for the work.
Members and firms communicate with clients and others clearly and in a way they can understand.
What’s three examples of Rule 4?
Members and firms respect the rights of others and treat others with courtesy.
Members and firms do not bully, victimise or harass anyone.
Members and firms work cooperatively with other
What’s three examples of Rule 5?
Members and firms respond to complaints made against them promptly, openly and professionally
Members and firms do not dissuade complainants from approaching an alternative dispute resolution provider, RICS or any other regulatory body.
Members and firms question practices and decisions that they suspect are not right, and raise concerns with colleagues, senior management, clients, RICS or any other appropriate person, body or organisation where they believe in good faith that it is necessary to do so. Firms provide processes to allow and support individuals within the firm to raise concerns with senior management.
How have you demonstrated Rule 1?
Maybe rent collection negotiations?
Gift / hospitality that was disproportionate to the work undertaken?
Identified COI and offered to stand down?
How have you demonstrated Rule 2?
First thing you do before undertaking any work is to ensure you are competent.
Have you done this before, do you know the locality? The property?
You need to keep up to date with CPD
How have you demonstrated Rule 3?
Ensuring you know your client’s aims
go the extra mile.
Personalize the service
How have you demonstrated Rule 4?
How do you encourage D&I in the workplace?
You can talk about how your company does this.
You could talk about organising social events with something for everyone?
How have you demonstrated Rule 5?
Relates to reporting stuff if someone does something wrong. This includes clients - they might have asked you to do something that’s wrong. Whistleblowing.
What are Firms’ obligations to RICS?
- To have PII cover
- To have a locum in place
- To have a CHP
- To provide any information reasonably requested by the standards & regulations board
- To cooperate with RICS
- To display ‘RICS Regulated’ on all business literature
- To provide all information requested under RICS registration process
What are Members obligations to RICS? (3)
- To cooperate with RICS
- To provide any information reasonably requested by the standards & regulations board
- To comply with CPD requirements
What RICS documents are there on Money Laundering and Anti-Bribery?
- RICS Bribery, Corruption, Money Laundering, and Terrorist Financing (Sept. 2019)
RICS Ethics principles (6)
- Honesty
- Integrity
- Competence
- Service
- Respect
- Responsibility
What does RICS Bribery, Corruption, Money Laundering, and Terrorist Financing (Sept. 2019) outline?
- Need to ensure that the client is not money laundering before accepting instruction.
o Record in the notes all the pre-checks on the client. This might include identifying UK bank accounts.
What are the 6 principles under the Bribery Act 2010?
o Proportionality
o Communication
o Risk Assessments
o Top-level commitment
o Due Diligence
o Monitoring and Review
What is the Conflict of interest check process?
- Carried out when taking on new client or instruction.
- Notify the partner in charge
- PIC will refer the case to the Workman Internal Conflict of Interest database.
- If a conflict is identified, step back from the case.
- The PIC will inform both parties of the conflict.
- Only take forward if it is agreed that it is fine to continue in best interest of both parties.
- Manage conflict with stuff like information barriers.
What is Workman’s AML Check process?
- When client onboarding & to be regularly updated
- Gain personal / organisation information
- Ensure no criminal affiliation
- Determine the source of the funds
- Check against sanctions list
What the client onboarding process?
- Gain organization & billing details for client
- Competence check
- AML Check (check sanctions etc.)
- Conflict of interest check
- Negotiate & draft terms of engagement
- Draft PMA & get signed
What’s the process for setting up RICS firm?
- Notify RICS of your intention
- Appoint lead communicator
- Provide all information in line with RICS registration rules
- Get PII cover & other necessary cover
- Set up CHP, anti bribe & money laundering policies
- Set up a locum
- Add ‘regulated by RICS to business literature
How do you How to close a RICS firm?
- Notify RICS you intend to close down
- Notify all clients & hand over to suitable alternative services
- Return all client funds you are holding
- Set up 6+ years run off cover
- Keep records for 6 years
What are the Requirements for handling client money?
- Data to be secured and protected
- Money is to be held in an account labelled ‘client’ and client’s name
- The account is always to be in credit
- The money must be available to the client on request
- Agreement on interest to be made
- There must be a monthly 3-way reconciliation
Firms’ complaints handling procedure?
- If someone wants to complain, do not discourage them
- Refer them to your complaints handling officer & step back
- Complaint to be sent in writing & added to complaints log
- Officer to acknowledge within 7 days, to respond in 28 days
- If an agreement cannot be reached, RICS dispute resolution service may be utilised (workman use Property Redress scheme)
What is included in a PMA?
- Identification of both parties & property to be managed
- Terms of engagement
- CHP & Dispute resolution
- MGMT Fee & Basis
- Services to be provided
o Budget / services / rent collection - KPIs & Reporting requirements
What’s the needed amount of CPD?
20 Hours a year, 10 of which is formal.
What is the RICS Decision Tree?
A guide for surveyors to use when their professional ethics are in question.
