Key Ethics Questions Flashcards
Why do you want to become a member of the RICS?
- Recognition and status
- Gives clients confidence in my services
- Knowledge
- Network
- Competitive advantage
What are the 5 Global and Ethical Standards? Give an example of each.
- To Act with Integrity (100LS valuation didnt include costs carried out on site)
- To always provide a high standard of service (Centrica amendment - act within my scope of competence)
- To act in a way that promotes trust in the profession
(Agree timescales with my clients and stick to them) - To treat others with respect (When agreeing variations with a contractor I am firm but respectful)
- Take responsibility (I carry out an internal QA process for all my work before it is formally issued to client / on site H&S risks)
What are the benefits of regulation?
- commitment to the highest standards
- open to independent scrutiny
- strict code of ethics
- protection for firm and clients
- training and CPD
How many professional groups are there? Name 5.
18 professional groups
- QS
- Project Management
- Dispute resolution
- Building surveying
- Valuation
What are the duties of each professional group?
- Provide best practice guidance
- Set the standards for professional competence
- Provide training, CPD and networking
- Promote and represent the profession
What do you need to do to set up your own firm?
- Advise RICS
- Apply for regulation
- Appoint a Responsible Principal
- PII / run off cover
- CHP
- Client money obligation
- Follow the RICS Rules for Firms
Why is it important to have client money handling in place?
Protects clients from:
- Misappropriation
- Insolvency
- Death of sole practitioner
Why might you be asked to hold clients money?
- Fees paid in advance
- Arbitration fees
- Clients money held but due to be paid to the contractor
What is professional indemnity insurance?
- Protection for the policy holder against negligence, non-performance, breach of duty or defamation
What does PII cover?
- Protects firms for financial loss in the event of a claim
- Protects clients from financial losses which cannot be met from the firms resources
What must a PII cover have?
- Each and every claim basis
- Written on a full civil liability basis
- Fully retroactive
- RICS minimum policy wording
- Minimum level of indemnity based on turnover
- Maximum level of uninsured excess
- Underwritten by a RICS listed insurer
- Cover past and present employees
- Includes run-off cover
What is the PII premium based on?
- Size of firm
- Type of work
- Claims history
- Number of partners
- Experience
How do you avoid PI claims?
- Record keeping of advice / meetings
- Follow RICS recommended best practice
- Issue Terms of Engagement / scope of services
- Only advice within your area of expertise
- Avoid poor management and excessive workload
What if you dont meet your CPD requirements?
1st time - fixed penalty caution
2nd time - caution, fine, and published on RICS website
3rd time - Referred to disciplinary panel
Which three of the 5 ethical standards resonate with you the most?
- Act with integrity ensures that I an honest, open and transparent with my work and will always avoid a conflict of interest
- High standard of service provides best possible advice and performance to those who I have a professional responsibility for
- Acting in a way that promotes trust in the profession ensures I act in a professional and positive manner in both private and professional settings
- Treating others with respect means treating others courteously and being polite, I am aware of any cultural sensitivities
- Taking responsibility is being accountable for my actions
How do you record your CPD activities? and when?
- Online RICS account by 31st Jan for the previous year
What if you are unsure whether CPD is formal or informal?
Refer to the RICS CPD decision tree
What are the CPD requirements for members?
- Minimum of 20 hours of CPD each year, with at least 10 hours being formal
- Members must also ensure they undertake learning in relation to the RICS global professional and ethical standards at least once every 3 years
Is it possible for a member to be granted an exemption from their CPD requirements?
Yes - in certain situations, a member can be granted an exemption from recording their CPD in a particular
year.
How did RICS decide upon the 20-hour minimum per annum?
- Set by governing council
- Consulted members
- RICS believe 20 hours is suitable
Yearly documents issued to RICS?
- Submitted online
Includes annual return, provision of training, PI policy, info on CMH, and CHP records
What are the RICS Byelaws?
10 byelaws, examples include:
- Accounts and audit
- Conduct
- Contributions to funds
- Designations
- Membership and registration
