Ethics - Submission Flashcards
Ethics - L1
The RICS is a professional body which promotes the highest ethical standards for real estate practice and expects all members and registered firms to uphold the high levels of professionalism.
I am aware of how the recent RICS ethical changes have evolved into the Rules of Conduct (2022). Following CPD seminars, I understand how The Levitt Report’s findings highlighted the issues in the structure of the RICS and how the report led to the Bichard Review.
I am also aware of the requirements which RICS regulated firms and RICS members must abide by.
- Rules of Conduct: effective 2022
Rule 1
- Members and firms must be honest, act with integrity and comply with their professional obligations, including obligations to RICS.
o E.g., not take unfair advantage of others
o E.g., Members and firms are open and transparent with clients about their fees and services.
Therefore, if client wanted to alter my fee basis I would decline because I align myself with the rules of conduct i.e. to act honestly/integrity and provide good and diligent service meaning the fee put forward would reflect my level of service
Rule 2
- Members and firms must maintain their professional competence and ensure that services are provided by competent individuals who have the necessary expertise.
o E.g. Members and firms only undertake work that they have the knowledge, skills and resources to carry out competently. - would ensure I am competent before taking on an instruction as demonstrated in letting of Barking.
Rule 3
- Members and firms must provide good-quality and diligent service
o E.g., Members and firms agree with clients the scope of the service to be provided and its limitations, and timescales for the work like when completing / agreeing terms of engagement.
o E.g., Members and firms understand clients’ needs and objectives before accepting any professional work e.g. like when completing letting I listened, incorporated and prioritised client’s objectives.
Rule 4
- Members and firms must treat others with respect and encourage diversity and inclusion.
o E.g. Members and firms respect the rights of others and treat others with courtesy do daily in my job – work in line with the RICS and company policy. Always mindful of D&I and inclusive Environments and make sure everyone feels valued.
Rule 5
- 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.
o Members and firms respond to complaints made against them promptly, openly and professionally - would always make client’s aware of Tandem’s complaints handling procedure
o MY EXAMPLE – H&S compliance e.g. resident
What are the 2 NEW categories of core material
RIC Reviewing and re-categories some RICS docs:
- Guidance note - practice information
- Prof Standard is mandatory
Levitt Report Objective
- Objective:
o To consider the way in which the internal report was commissioned and dealt with and to determine whether there were any shortcomings
o To consider whether any shortcomings represented a failure of governance
o To make recommendations for the future.
Levitt Review
- Independent review into treasury management issues at RICS.
- Conclusions/rec - the principles of good governance, the RICS structure and professional ethics.
o All members of Boards and Committees should be subject to regular reviews
Findings - Levit
- Findings - The Independent Review found that the non-Executive Board members’ concerns were legitimate and that they were wrongly dismissed.
- A key contributing factor was a lack of clarity around the roles and responsibilities of the various RICS Boards, senior leadership and management.
This led to a lack of scrutiny over the actions of the RICS Chief Executive and Chief Operating Officer – leading to a power struggle.
18 recommendations
- Review contains 18 specific recommendations. These are set out in detail here. These include recommendations on governance, executive remuneration, whistle blowing and legal advice.
