General RICS

Question 1

Please list the Rules of Conduct for Members and Firms?

Answer 1

Rule 1 – Members and firms must be honest, act with integrity and ensure they comply with their professional obligations, including those with the RICS.
Rule 2 – Members and firms must maintain their professional competence and ensure that services are carried out by competent individuals with the necessary expertise.
Rule 3 – Members and firms must provide a good quality and diligent service
Rule 4 – Members and firms must treat others with respect and encourage diversity and inclusion
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.

Question 2

Can you provide example behaviours to comply with Rule 1?

Answer 2

Members and firms are open and transparent about their fees and services.

Question 3

Can you provide example behaviours to comply with Rule 2?

Answer 3

Members and firms only undertake work that they have the knowledge, skills and resources to.

Question 4

Can you provide example behaviours to comply with Rule 3?

Answer 4

Members and firms agree with clients the scope of the service to be provided and its limitations and timescales of the work.

Question 5

Can you provide example behaviours to comply with Rule 4?

Answer 5

Members and firms do not bully, victimise, or harass anyone.

Question 6

Can you provide examples behaviours to comply with Rule 5?

Answer 6

Members and firms respond to complaints made against them promptly and professionally.

Question 7

Please can you list core professional obligations for members detailed in Rules of Conduct Appendix A?

Answer 7

• Members must comply with the CPD requirements set by the RICS.
• Members must cooperate with RICS.
• Members must promptly provide all information reasonably requested by the Standards and Regulation Board.

Question 8

Are you aware of any RICS regulation on the use of social media accounts?

Answer 8

Use of social media: guidance for RICS members. The overall message is that standards of members do not change because they are communicating through social media.

Question 9

Please can you list core professional obligations for firms detailed in Rules of Conduct Appendix A?

Answer 9

• Firms must publish a complaints handling procedure, which includes an alternative dispute resolution provider approved by RICS and a complaints log.
• Firms must ensure that all previous and current work is covered by adequate and appropriate professional indemnity insurance.
• Firms with a sole principal must make appropriate arrangements for their professional work to continue in the event of their absence (locum).
• Firms must cooperate with the RICS.
• Firms must promptly provide information requested by the Standards and Regulation Board.
• Firms must display their business literature, in accordance with RICS’ published policy.
• Firms must report to RICS any matter that they are required to report under the Rules and Regulations for Firms.

Question 10

Say you attend a work social event and witness two junior colleagues acting in a way which could bring your firm into disgrace. What would you do in this situation?

Answer 10

I would speak with them immediately and take steps to prevent reputational damage or embarrassment. I would then address their actions formally in working hours.

Question 11

Why does RICS publish guidance notes and do Chartered Surveyors have to follow them?

Answer 11

If a surveyor faces a professional negligence claim or RICS regulatory or disciplinary proceedings, they will need to be able to evidence that they acted with reasonable competence. This can be achieved by complying with RICS guidance publications.

Question 12

What is the ‘Black Book’?

Answer 12

The ‘Black Book’ is a collection of technical practice documents which covers all processes throughout the construction project life cycle. The document are essential development tools for junior professionals working through their APC.

Question 13

Can you briefly explain the purpose of a Professional Standard document?

Answer 13

Mandatory requirements that surveyors must follow where the word ‘must’ is used. Nest practice that surveyors should follow where the word ‘should’ is used. Examples are “Rules of Conduct”, “Conflicts of Interest”, “Bribery, Corruption, Money Laundering and Terrorist Financing”, “Client Money documents”.

Question 14

Can you briefly explain the purpose of a Practice Information document?

Answer 14

This is supplementary guidance to support surveyors. The guidance is not mandatory.

Question 15

Can you explain how you act with integrity?

Answer 15

Being trustworthy in all that I do, being open and transparent in the way I work, Respecting confidential information, Not allowing bias through conflicts of interest.

Question 16

Why must you act within your professional capabilities/competence?

Answer 16

To ensure I do not advise my clients incorrectly which could lead to a complaint or claim of negligence.

Question 17

Can you explain how you take responsibility?

Answer 17

Be accountable for all my actions. Always act with skill, care, and diligence. Willing to challenge and issues.

Question 18

How do you provide a high standard of service when executing your professional appointment?

Answer 18

I always ensure my client receive the best possible advice. Always acting within my scope. Ensuring project folders and well maintained and contain sufficient information upon client requests. Being transparent with my fees.

Question 19

Can you explain how you promote trust in the profession?

Answer 19

Understanding how my actions will affect others. Fulfilling my professional obligations. Acting in a trustworthy manner in both my professional and private life.

Question 20

Can you clarify what an individual should do to maintain a high ethical standard in their profession?

Answer 20

Maintain CPD. Follow advice given by professional bodies. Noting any unethical behaviour and reporting this. Help their organisation to develop ethical ways of working.

Question 21

What sort of things can employers do to create an ethical environment for their staff?

Answer 21

Establish confidential procedures for ‘whistle blowing’. Include ethical evaluations in formal performance appraisals. Promoting CPD in the relevant area. Encouraging their staff to undertake the APC. Making employees undertake mandatory training in the area.

Question 22

What is the difference between ethics and integrity?

Answer 22

Integrity is the internal quality of being honest and having strong morals. Ethics is more external and applies to an organisations rule, regulations, code of conduct that have been created to allow employees to work following moral principles.

Question 23

Are you aware of any tools produced by RICS to help members make ethical decisions?

Answer 23

RICS have produced an ethics decision tree.

Question 24

Are you aware of any rules associated with registering a firm with RICS?

Answer 24

Rules for the registration of firms.

Question 25

When is a firm require to register for regulation?

Answer 25

A firm is required to register for regulation by the RICS if:
The firm provides surveying services to the public.
The firm is operating in Regulated Area A (UK).
At least 50% of the firm’s Principals are RICS members

Question 26

In which circumstances are firms eligible to register for regulation?

Answer 26

A firm is eligible to register for regulation by RICS if;
The firm provides surveying services to the public
At least 25% of the firm’s Principals are RICS members

Question 27

What is a locum?

Answer 27

A firm which has a sole principal must have in place appropriate arrangements in the event of that sole principal’s death, incapacity or other extended absence. A locum is effectively another professional who is appointed to ‘stand in’ for the surveyor.

Question 28

Who can be a locum?

Answer 28

Typically, another Chartered Surveyor, although hey could also be a solicitor or accountant.

Question 29

How does professional indemnity insurance relate to Locums?

Answer 29

Locums need to be covered for any undertaken whilst the sole practitioner is unavailable. This could be under their own cover, or under the firms PII policy.

Question 30

Can you accept a gift from your client or contractor?

Answer 30

I would not accept gifts, hospitality, or services, which might suggest an improper obligation. It is important to consider the timing of the gift, proportionality, and consideration to the impartiality of the gift.

Question 31

What things would you consider when assessing if a gift or hospitality is appropriate to accept?

Answer 31

The value of the gift, the timing of the gift i.e. am I in a tender review, who else has been offered the gift, is it in-line with the RICS Rules of Conduct, will the gift effect my ability to act impartially.

Question 32

What are the CPD requirements for members?

Answer 32

A minimum of 20 hours CPD per calendar year with a minimum of 10 hours formal CPD. Members must maintain their ethical standards i.e. the test every 3 years.

Question 33

Can you explain what a conflict of interest is?

Answer 33

A conflict of interest arises in a situation where there may be an actual, perceived or potential risk that the professional judgement of an RICS-regulated firm or member will be compromised when undertaking an assignment.

Question 34

Is the Conflicts of Interest, 1st edition, March 2017 a guidance note or professional standard?

Answer 34

Professional Standard.

Question 35

Can you name the 3 types of conflict outlined in the 2017 professional statement?

Answer 35

Party Conflict, Confidential Information Conflict, Own-interest Conflict

Question 36

What is Party conflict?

Answer 36

A situation where a firm / member is acting for clients with conflicting interests. I.e. competing supermarkets.

Question 37

What is Own Interest conflict?

Answer 37

A situation where a firm / members’ personal interests conflict with their clients. i.e. shares in a particular Main Contractor

Question 38

What is Confidential Information conflict?

Answer 38

Obligation to provide information to one party conflicts with confidential agreements of another.

Question 39

Can you provide working examples of a conflict, or potential conflict of interest?

Answer 39

Acting for both the developer and contractor on the same project.

Question 40

What is informed consent?

Answer 40

informed consent occurs when a party who might be adversely affected by a conflict of interest acknowledges the existence of that risk but still agrees to instruct an RICS-regulated firm or RICS member to proceed with the assignment.

Question 41

What action should someone take if a Conflict-of-Interest situation arises?

Answer 41

As soon as you become aware, disclose this to the client in writing and detail the nature of the conflict.

Question 42

You are instructed to work on a proposed development which would require the removal of a nature reserve. You have very strong views on protecting the environment. What should you do?

Answer 42

Ask myself the question – could I work on a project without bias and give the client proper and impartial advice? Notify the client in writing of a potential conflict of interest. I may need to respectfully decline the commission and offer somebody else in the business who could work on the development.

Question 43

What is a bribe?

Answer 43

A temptation or reward offered, promised, or provided to gain any commercial or personal advantage

Question 44

What is the Bribery Act 2010?

Answer 44

The Bribery Act is a UK law that prohibits bribery and makes commercial organisations criminally liable for bribery. The Act contains four main bribery offences: Bribing another person, Being bribed, Bribing a foreign public official, Failure by a commercial organisation to prevent bribery.

Question 45

What are the 6 principles for implementing adequate procedures to prevent bribery, from the Bribery Act?

Answer 45

Proportionality – the action taken should be proportionate to the risk and size of the organisation.
Top level commitment – Those in senior positions are best placed to ensure the organisation conducts business without bribery.
Risk assessment – Many organisations will have little or no risk of bribery, but a risk assessment will show the nature or extent of exposure to bribery.
Due diligence – Due diligence procedures must be applied, taking a proportionate and risk-based approach, with regard to individuals who perform or will perform services on behalf of the organisation.
Communication – Employers will need to communicate their policies and procedures to staff and others who perform services, additional training may help raise awareness.
Monitoring and review – Organisations should monitor and review procedures designed to prevent bribery.

Question 46

What is your position for compliance with the Bribery Act 2010?

Answer 46

Mace has an anti-bribery and corruption policy which applies to me as an employee. I strictly follow the procedures. I would report any act of bribery to the National Crime Agency.

Question 47

What are the potential consequences for not adhering to the Bribery Act 2010?

Answer 47

Individuals can receive a jail sentence of up to 10 years. Reputation damage.

Question 48

What is money laundering?

Answer 48

Money laundering is the generic term used to describe the process by which criminals disguise the original ownership and control of the proceeds of criminal conduct by making such proceeds appear to have derived from a legitimate source.

Question 49

How do you report suspicious money laundering?

Answer 49

Report to the National Crime Agency.

Question 50

A client asks you to take responsibility for making interim payments to the contractor. The client gives you half a million pounds in cash to make the payments. What would you do in this situation?

Answer 50

I would not accept the cash and encourage the client to place the funds into a bank account (the responsibility then rests with the bank). If I had concerns over the source of the cash I would report this to the National Crime Agency.

Question 51

What is corruption?

Answer 51

The abuse of entrusted power for private gain.

Question 52

What is a price fixing cartel?

Answer 52

A price fixing cartel is a collection of otherwise independent businesses or countries that act together as if they were a single producer

Question 53

What is terrorist financing?

Answer 53

The solicitation, collection, or provision of funds with the intention to support terrorist acts or organisations.

Question 54

What are the mandatory requirements for RICS members and firms in association with bribery, corruption, money laundering and terrorist financing?

Answer 54

Requirements are detailed in the professional standard Countering Bribery, Corruption, Money Laundering and Terrorist Financing.

Question 55

What is modern slavery?

Answer 55

The exploitation of people for personal and commercial gain.

Question 56

What is the relevant legislation to the modern slavery act?

Answer 56

Modern Slavery Act 2015.

Question 57

What is Professional Indemnity Insurance?

Answer 57

PII covers the policyholder for the costs of legal action made against them in respect of a professional negligence claim based on their professional advice or performance.

Question 58

Have the RICS published any information on PII requirements?

Answer 58

Yes, the Professional Indemnity Insurance requirements.

Question 59

What is the purpose of PII?

Answer 59

Ensures that if the victim faces a claim, it is protected against financial loss that it cannot meet from its own resources.

Question 60

What is the difference between ‘any one claim’ and ‘aggregate’ policies?

Answer 60

Any one claim provides cover up to the full limit for each individual claim made in the period of insurance, whereas aggregate provides cover up to the full limit for all claims made in the period of insurance.

Question 61

What is a fully retroactive policy?

Answer 61

PII policies work on a ‘claims made’ basis. This means the policy covers claims that are first made against the insured during the period of insurance regardless of when the negligent act occurred. If the retroactive date of the policy is stated as ‘none’ then the policy is fully retroactive and all former work carried out by the firm will be covered.

Question 62

What measures do you take to avoid PII claims?

Answer 62

Keep full and detailed recordings of meetings, record recommendations and advice given, follow RICS guidance and professional statements, follow RICS rules of conduct, avoid providing advice outside of my specialism.

Question 63

Tell me about Merrett vs Babb (2011)

Answer 63

Babb completed a valuation as an employee of a company. The valuations was later found to be negligent. The original company no longer existed and the PII cover had been cancelled. The court ruled that Merett could pursue the individual Babb for losses.

Question 64

What are the minimum limits of indemnity for regulated firms?

Answer 64

1. Turnover in preceding year £100,000 vs £250,000 minimum limit of indemnity.
2. Turnover in preceding year £100,001 to £200,000 vs. £500,000 minimum limit of indemnity.
   3.Turnover in preceding year £200,001 and above vs £1,000,000 minimum limit of indemnity.

Question 65

What is the maximum level of uninsured excess for regulated firms?

Answer 65

1. Turnover in preceding year £10,0000,000 or less vs the greater of the 2.5% of the sum insured or £10,000.
2. Turnover £10,000,001 and above vs. No limit set.

Question 66

If you make a mistake, what would your insurance company expect you to do next?

Answer 66

Notify them at the earliest opportunity, comply with any conditions and procedures set in the insurance policy, advise the client of the error, assess the level of mistake and take steps to correcting.

Question 67

Assuming you are MRICS… a friend asks for your help on a house extension, they ask for technical advice, for free, outside of business hours?

Answer 67

My firms’ PII would not cover me for private advice, I would therefore politely decline. I would also need to consider a potential conflict of interest.

Question 68

What is professional indemnity insurance run-off cover?

Answer 68

‘Run-off’ is a form of PII which covers the historic liabilities of a business after it ceases to trade.

Question 69

How long should run-off cover be in place?

Answer 69

RICS expect run-off cover to be maintained for a minimum period of six-years.

Question 70

What is the motto of the RICS?

Answer 70

Est modus in rebus - there is measure in all things

Question 71

What is the role of the Standards and Regulation Board?

Answer 71

Exclusive responsibility for exercising RICS’ regulatory functions including strategy, governance, policy and operations. It oversees the activities of RICS’ professional standards, entry and admission to the profession, education and qualification standards

Question 72

Can you give me an overview of RICS’ governance structure?

Answer 72

Under the Royal Charter, RICS’ governing body is the Governing Council, which is responsible for approving RICS strategy and vision. You then have the RICS board and the Standards and Regulation Board who sit under the Governing council.