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APC Mandatory > Level 3 - Conduct rules, Ethics and Professional Practice > Flashcards

Level 3 - Conduct rules, Ethics and Professional Practice Flashcards

1
Q

What are the different tyoes of OJEU?

A

Restricted
Open
Competitive negotiation
Competitive dialogue

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2
Q

N1. How does the RICS discipline members?

A

• When an allegation is received, the RICS Head of Regulation will:
o Make further enquiries.
o Inform the person the allegation is made against in writing, who can write a response within 28 days.
o Decide whether there are grounds for the complaint.
o If there is, they will either:
 Issue a consent order.
 Issue a fixed penalty.

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3
Q

N2. What is a consent order?

A
  • An order outlining what needs to be changed. It will usually outline what actions need to be taken, and by what date they need to be achieved.
  • Pay a fine.
  • Pay RICS Costs.
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4
Q

N3. Does the RICS publish any guidance on the Disciplinary Measures?

A

• Yes, there is a large section on the RICS website.

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5
Q

N4. What RICS initiatives do you know of?

A
  • PRME – Whereby the RICS is part of the UN backed Principles for Responsible Management Eduction.
  • New Arbitration Service Launched.
  • Lionheart.
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6
Q

N5. Can you tell me more about the New Arbitration Service?

A
  • Brought in due to a decline in the use of Arbitration due its slowness.
  • Arbitrators are supervised to ensure they use the powers given to them under the Arbitration Act 1996 to robustly manage costs.
  • Will be faster and cheaper than courts.
  • Will be better than adjudication, as it will be more detailed when looking at an issue, resulting in judgements that are commercially sensible.
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7
Q

N6. What issues do you know about that the RICS are looking into?

A

• The rising prices of housing in relation to the lack of supply and over demand. Further to this, house building is driving the current construction industry boom.

Grenfell tower and commenting on improved fire regulation consultation

Diversity and inclusion in the profession

RICS Whistleblowing - Alison Levitt QC report

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8
Q

N7. Who is the current president of the RICS?

A

Clement Lau FRICS - RICS President

Clement became RICS President in September 2021

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9
Q

N8. Who is the president elect?

A

Ann Gray FRICS – RICS President-Elect

Ann became RICS President-Elect in September 2021.

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10
Q

N9. What current themes does Clement Lau FRICS - RICS President promote?

A

This recognises his active promotion of professionalism across the built environment throughout his career, most recently in his current role as Director and Head of Development and Valuations for Commercial Property at Hongkong Land Ltd.

He is determined to extend the reach and influence of RICS’ thought-leadership and to drive the organisation’s digital capability during his term

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11
Q

N10. What is the Royal Charter?

A

• Awarded in 1881 by Queen Victoria, to maintain and promote the usefulness of the profession for the public advantage.

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12
Q

N11. How many Countries and how many Members does the RICS operate in and have?

A
  • RICS operates in 146 countries.

* RICS has approximately 140,000 members.

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13
Q

N12. Where is the RICS Head Quarters?

A

• Parliament Square, London.

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14
Q

N13. What would you say the RICS is?

A

• One of the most highly respected, high profile international institutions that offers advise on property, construction, Land, project management, dispute resolution and environmental issues to the client and the public and private sectors.

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15
Q

N14. What do you think about the RICS?

A
  • I think the RICS plays a key role in maintaining and promoting professional standards.
  • I think it also provides an invaluable service to both Clients and the Public.
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16
Q

N15. What is the Role of the RICS?

A
  • To Regulate and promote the profession.
  • To Maintain the highest standards.
  • Protect Clients and consumers through the strict code of ethics.
  • Provide impartial advice and guidance.
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17
Q

N16. How many professional groups are there?

A

• 17.

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18
Q

N17. Can you name some of the professional groups?

A 
•	Quantity Surveying and Construction.
•	Project Management.
•	Building Surveying.
•	Planning and Development
•	Commercial Property
Residential
•	Dispute Resolution.
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19
Q

N18. What are the duties of these professional groups?

A
  • To provide best practice guidance.
  • To set standards for professional competence.
  • To provide training, CPD and network opportunities.
  • Promote and Represent.
  • To undertake research to improve the profession.
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20
Q

N19. What are the three market sectors covered by the RICS?

A
  • Land.
  • Property.
  • Construction.
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21
Q

N20. What is the Governing Structure for the RICS?

A
  • They meet three times a year.
  • New president every year.
  • There is a 70 strong governing council chaired by the president.
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22
Q

N21. can you describe the RICS governing structure to me?

A
  1. At the top is the Governing Council.
  2. Below this is the Regulatory Board, the Audit Committee and the Management Board.
  3. Below the Management board there are 7 sub-boards, being:
    a. World Board.
    b. Knowledge Board.
    c. Members Board.
    d. Finance Board.
    e. Renumerations Board.
    f. Business Development Board.
    g. Communications Board.
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23
Q

N22. What is the RICS Matrics?

A
  • A division of the RICS dedicated to student surveyor training.
  • Produces a network of Charity and Networking events.
  • Promotes seminars and lectures.
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24
Q

N23. What is the Carsberg Report?

A

• A report undertaken in 2005 as a result of members general dissatisfaction with the RICS’ internal Regulatory procedures.

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25
Q

N24. What did the Carsberg Report introduce?

A
  • The conduct board, who operate the disciplinary measures.
  • The requirement for firms to be regulated as well as Members.
  • The Rules of Conduct, which have subsequently been revised into their most recent format in 2013.
  • A profession that is better regulated.
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26
Q

N25. What Help Sheets does the RICS publish?

A 
•	Helpsheets on:
o	CPD.
o	Complaints Handling Procedure.
o	Handling Clients Money.
o	PII Requirements.
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27
Q

N26. How many levels of RICS membership are there?

A

• 4.

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28
Q

N27. What are the four levels of RICS membership?

A
  • Trainee.
  • Associate.
  • Member.
  • Fellow.
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29
Q

N28. How do you become a fellow?

A
  • 5 years post award MRICS.
  • Managerial positions.
  • Significant contribution to the profession.
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30
Q

N29. What is the APC?

A

• The Assessment of Professional Competence is a period of structured training followed by a Final Assessment Interview.

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31
Q

N30. What different routes can you take to APC?

A

• Graduate Route 1 which requires:
o An accredited degree.
o Plus 2 years industry experience.
o And diary.

• Graduate Route 2 which requires:
o An accredited degree.
o 5 years industry experience.
o 1 year diary.

• Graduate Route 3 which requires:
o An Accredited degree.
o 10 years industry experience.
o Submission.

•	Academic route which requires:
o	Portfolio.
o	3000 word submission.
o	Continued Professional Development.
o	Final Assessment Interview.
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32
Q

N31. What is the route for an associate member?

A
  • 0 to 4 years experience.
  • 2000 word summary of experience.
  • 2000 word case study.
  • 24 hours CPD.
  • Completion of Online ethics course.
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33
Q

N32. What is Lionheart?

A

• A benevolent fund dedicted to providing support and financial aid to current and past members and their families.

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34
Q

N33. If you become qualified, how will you become involved with the RICS?

A

• I will attend RICS events.
• Become and APC supervisor.
• Respond to Surveys and Consultations.
- Promote the profession

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35
Q

N34. Would you like to become an APC Assessor?

A

• Yes, I would like to keep learning and broadening my understanding of the profession.

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36
Q

N35. How do you become an assessor?

A

• Must be MRICS for three years, plus a 1 day training course.

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37
Q

N36. What is the role of the APC Supervisor?

A
  • To Advise a candidate on the most appropriate route and competencies.
  • Offer guidance, support and encourage candidates.
  • Evaluate candidates structured training.
  • Guide candidates through the Submission.
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38
Q

N37. What benefits will you gain from becoming MRICS?

A
  • International Recognition from clients and peers.
  • Competitive Advantage.
  • A known level of professional standards.
  • Quality assurance to my clients.
  • Access to information and training resources.
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39
Q

N38. What is the ‘Black Book’?

A

• A suite of best practice guidance notes and technical standards for Quantity Surveying and Construction professionals

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40
Q

N39. Can you name some of the Black Books?

A
  • Valuing Change.
  • Retention.
  • Acceleration.
  • Construction Insurance.
  • Cash Flow Forecasting.
  • Appropriate Contract Selection.
  • Developing a Construction Procurement Strategy.
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41
Q

N40. What is the ‘Red Book’?

A

• Mandatory rules and Practice guidance for Valuation Surveyors.

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42
Q

N41. What are the Five Principles for Better Regulation?

A
  • Proportionality.
  • Accountability.
  • Consistency.
  • Targeting.
  • Transparency.
43
Q

N42. Who determines the Five Principles for better regulation?

A

• The Better Regulations Commission.

44
Q

N43. What is the difference between ethics and rules?

A
  • Ethics are a moral principle and value.

* Rules are the framework we work to.

45
Q

N44. What are the Global Professional and Ethical Standards?

A
  • Always provide a high level of service.
  • Act in a way that promotes trust in the profession.
  • Always act with integrity.
  • Always take responsibility.
  • Always show respect to others.
46
Q

N45. What does providing a high level of service mean to you?

A
  • Ensuring that clients and those you have a responsibility over receive the best possible advice and support.
  • Providing clarity on what the client wants, and what you are offering.
  • Acting within your scope of confidence.
  • Being transparent about fees.
47
Q

N46. What does promoting trust in the profession mean to you?

A
  • Acting in a manner to promote you and the organisation you work for and the profession in a professional way.
  • Promoting what the profession stands for.
  • Understanding that this should be reflected within your personal life.
  • Fulfilling obligations, doing what you say you will do.
  • Meeting the spirit of the standards, not just the words.
48
Q

N47. What does acting with Integrity mean to you?

A
  • Being trustworthy.
  • Being Open and transparent.
  • Not taking advantage of those whom you have a duty of care.
  • Not allowing bias or a conflict of interest to override business judgement.
  • Not offering or accepting gifts.
  • Acting consistently in the public interest.
49
Q

N48. What does taking responsibility mean to you?

A
  • Being accountable for your actions and not blaming others.
  • Always act with skill, care and diligence.
  • Where complaints are made against you, respond in an appropriate and professional manner to aim to resolve the issue.
  • If you don’t think something is right be prepared to raise the matter with the appropriate person.
50
Q

N49. What does treating others with respect mean to you?

A
  • Being courteous, polite and considerate to others. Also being aware of culture sensitivities.
  • Never discriminate.
  • Encourage the firm to work in a fair and respectful manner.
51
Q

N50. Why does the RICS have rules of conduct?

A

• They provide a framework we can all work to, whilst ensuring a Client understands exactly the service they should be receiving.

52
Q

N51. How many Rules of Conduct are there from Members?

A

Seven main rules of conduct

+ Plus Two general rules

Nine in Total

(See RICS Rules of Conduct for members - March 2020)

53
Q

N52. Can you list the Rules of conduct?

A
  1. Interpretation. (GENERAL)
  2. Communication. (GENERAL)
  3. Ethical Behaviour.
  4. Competence.
  5. Service.
  6. Continued Professional Development (CPD).
  7. Solvency.
  8. Information to RICS.
  9. Co-operation.
54
Q

N53. How many Rules of Conduct are there for Firms?

A

• Fifteen

See - ‘Rules of Conduct for Firms’ (Version Seven, 2 March 2020)

55
Q

N54. Can you list the Rules for firms?

A
  1. Interpretation. (GENERAL)
  2. Communication.(GENERAL)
  3. Professional Behaviour.
  4. Competence.
  5. Service.
  6. Training and Continued Professional Development.
  7. Complaints handling.
  8. Clients’ money.
  9. Professional Indemnity Insurance/cover.
  10. Advertising.
  11. Solvency.
  12. Arrangements for Incapacity or death of an owner.
  13. Use of Designations.
  14. Information to RICS
  15. Co-operation with RICS.
56
Q

N55. What do you do if you find a member working outside the RICS Rules of Conduct?

A
  • Verify the facts, then politely remind them of their duties as a member of the RICS.
  • If they persist I would write to the RICS Head of Regulation and inform them.
57
Q

N56. What are the RICS Disciplinary Procedures?

A
  • RICS Head of Regulation will investigate any accusations.
  • This may result in them requesting a visit and further information.
  • The member/firm in question must cooperate fully as per the Rules of Conduct.
58
Q

N57. How can a disciplinary procedure be triggered?

A
  • Complaints to the RICS.

* Allegations by Clients/Third Parties.

59
Q

N58. What disciplinary actions can be taken?

A
  • Consent order.

* Fixed Penalty.

60
Q

N59. What is a Consent order?

A

• A written instruction from the RICS to improve/implement corrective procedures for the party in question.

61
Q

N60. What may the fixed penalties be?

A
  • Caution
  • Unlimited Fine.
  • Member expulsion.
62
Q

N61. What can result in expulsion?

A
  • Fraud.
  • Dishonesty.
  • Criminal Offence.
63
Q

N62. How are Disciplinary Breaches published?

A
  • Hearings are posted on the RICS website 14 days prior.

* Decisions are published online/local paper.

64
Q

N63. What would you do if a contractor offered to take you to a hospitality event?

A
  • I would decline, as because I have been targeted directly, it could be seen as trying to impair my judgement.
  • If the gift was directed at the company as a whole, I would secondly consider the timing, i.e. will I be awarding any sub-contracts soon, which this could be seen as influencing.
  • Finally, I would consider the proportionality of the gift, i.e. is it proportional to our business relationship.
  • I would also record any gifts I receive within the business register.
65
Q

N64. How do you keep up-to-date with topical issues?

A
  • Receive email notifications from the RICS
  • Building.co.uk
  • Propertyweek.co.uk
  • RICS news online.
  • Gov.uk (Public Procurement & Regulation)
66
Q

N65. What would you do if a contractor invited you to a hospitality event?

A
  • Politely decline.

* I wouldn’t want to accept any hospitality which may be considered to affect my impartiality.

67
Q

N66. What would you do if a client offered you hospitality?

A
  • Politely decline.
  • I wouldn’t want to attend anything that may compromise my impartiality.
  • If they insist then I would pay my own costs.
68
Q

N67. What is a conflict of interest?

A

• When someone in a position of trust has competing personal or professional interests, making it difficult from them to fulfil their duties impartially.

69
Q

N68. How do you proactively avoid claims?

A
  • Keep full detailed records of meetings and conversations.
  • Record recommendations and advise given.
  • Letters of Engagement, scope of services and terms.
  • Do not advise if the advise required is outside my field of experience.
  • Use RICS Guidance.
70
Q

N69. Can a client claim for damages against a Quantity Surveyor who prepares an incorrect estimate?

A
  • Not necessarily.

* They would have to prove that the Quantity Surveyor warranted the accuracy of the estimate.

71
Q

N70. How can you limit your liability when agreeing terms of appointment.

A

• Sign underhand whenever possible.

72
Q

N71. What would say is conduct unbefitting a chartered surveyor.

A

• Conduct not inline with the Global Professional Ethical Standards.
• Such as:
o Dishonesty.
o Criminal convictions.
o Acting improperly in a conflict of interest situation.

73
Q

N72. What do you need to do to set up a new RICS Firm?

A
  • Fill out the RICS firm details form (online)
  • Have Professional Indemnity Insurance.
  • Pay fees for registering.
  • Have a procedure for Handling Clients Money.
  • Have a Complaints Handling Procedure in Place.
  • Have a process to ensure staff are adequately trained.
  • 50% of Directors must be MRICS.
74
Q

N73. What are the RICS CPD requirements?

A
  • 20 hours CPD, of which 10 is formal.
  • Maintain relevant understanding of the RICS ethics.
  • Record CPD activities online.
75
Q

N74. What is a bribe?

A

• An exchange of value for an improper cause.

76
Q

N75. . What Regulation covers money laundering within the UK?

A

• The UK Money Laundering Regulation 2007.

77
Q

N76. Who does the UK Money laundering Regulation 2007 apply to?

A

• Anybody in the regulated sector.

78
Q

N77. What are regulated firms required to do?

A

• Put in place systems to stop money laundering.

79
Q

N78. What are the indicators of Money laundering?

A
  • Secretive Client.
  • Not knowing where the money is coming from.
  • Paying in a special way, i.e. cash.
80
Q

N79. What publications does the RICS publish relating to Bribes?

A

• Money Laundering Guidance 2011.

81
Q

N80. What would you do if a Client offered to pay you in cash for your works?

A

• Ask them to pay the cash into an online bank account then transfer the money, as paying in cash could be seen as tax evasion.

82
Q

N81. What law governs the act of Bribery within the UK?

A

The Bribery Act 2010.

83
Q

N82. What are the penalties for committing a bribe within the UK?

A
  • Up to 10 years in prison.

* Unlimited fine.

84
Q

N83. What are the 6 Principles to mitigate a bribe?

A
  1. Proportionate Procedures = Companies should have procedures to prevent bribes.
  2. Top Level Commitment = Senior Management committed to stopping bribes.
  3. Risk Assessments = Assess a companies risks to bribes.
  4. Due Diligence = Performing due diligence on individuals who will perform services on behalf of an organisation.
  5. Communication = Training employees on how to identify a bribe.
  6. Monitoring and Review = Reviewing and improving procedures.
85
Q

N84. What are the four types of Bribes?

A
  1. Giving.
  2. Requesting.
  3. Offering.
  4. Receiving.
86
Q

N85. What is classed as a bribe under the Bribery Act 2010?

A
  • Bribing a public official.
  • Facilitation payments.
  • Failing to prevent a briber by a commercial organisation.
87
Q

N86. What are facilitation payments?

A

• A type of bribe in which a government official is given money or goods to perform a service to speed up an existing duty.

88
Q

N87. What are they types of RICS Published Documents?

A
  • Practice Statement.
  • Code of Practice.
  • Guidance Note.
  • Information Paper.
89
Q

Why is RICS ‘Royal’?

A

The Institution of Surveyors received a Royal Charter in 1881 which requires us to promote the usefulness of the profession for the public advantage.

90
Q

10.3 What is the difference between an Institute and an Institution?

A

An institute is an organisation to advance the study of a particular subject.
An Institution is an organisation that exists to serve a public purpose.

91
Q

10.4 What is the RICS’s role today?

A

RICS has 3 main roles:
• To maintain the highest standards of education and training
• To protect consumers through strict regulation and professional standards
• To be the leading source of information and independent advice on land, property, construction and associated environmental issues.

92
Q

10.7 Why do you want to join the RICS?

A
  • It will bring me great pride and satisfaction to become a member of such a highly regarded organisation
  • Enhance my career opportunities.
  • It will also give my clients greater reassurance that I will deliver a high standard of service.
93
Q

10.8 How will being a charted project manager benefit and differentiate you?

A

It will demonstrate to clients and my employer that I have undergone thorough training and assessment in relation to my profession and will continue to develop my abilities throughout my career.

94
Q

10.9 How do you become a fellow of the RICS?

A

To become a Fellow you must provide the following to the RICS Fellow Assessment Board:
• Provide evidence of senior management and professional responsibility
• Proof of the significant contribution you have made to the profession
• A portfolio of professional achievement to include your CPD record.

95
Q

10.20 If you were to set up your own company what would you need to do to set this up?

A

RICS Requirements

  • Comply with the RICS rules of conduct for firms.
  • Notify the RICS – let them know by completing an RICS firm details form.
  • PII – have in place adequate PII and send certificate to RICS. For new firms, PII is based on estimated turnover.
  • Register with RICS.
  • Be Regulated by the RICS – RICS will let you know if you need to be regulated by them once they receive your notification of a firm form.
  • Client’s Money Obligations –

i. Separate account.
ii. With ‘client’ in title.

  • Complaints Handling Procedure – have in place a CHP, record a complaints log, appoint a complaints handling officer, if sole practitioner this is a surveyor from another firm.
  • Staff Training and Development – RICS CPD requirements, establish a training programme to ensure staff are trained and competent.
96
Q

10.21 What are the Money Laundering regulations (2007)?

A
  • No cash payments in excess of £15K euros is to be accepted
  • Consider potential income tax liability for gifts in kind
  • Requires companies to appoint an MLRO
  • Employees should report any suspicious activity to the MLRO who can investigate
  • Firms should have in place money laundering training to educate staff
  • New EU directive for reforms issued this year and countries have 2 years to turn it into national law.
97
Q

10.28 What is a conflict of interest?

A

A conflict of interest is anything that impedes or might be perceived to impede an individuals or firms ability to act impartially and in the best interest of the client.
Ex. - Client’s relation at contractor tendering for the works, still wants to award contract to them. Liaise with the client’s legal advisor and report this issue to my superior.

98
Q

10.29 When can a conflict of interest occur?

A
  • Acting for another person with competing interests at the same time, for example acting for the buyer and the seller of a property.
  • You have obligations or pressures that detract or affect your relationship with the client, for example acting as an expert witness where you or your firm has an interest in the outcome of proceedings.
  • You are faced with conflicting duties owed to different clients, for example acting for 2 or more parties competing for an opportunity.
99
Q

What does the RICS do to further Project Management in the industry?

A

Provide RICS guidance notes for the area of practice.

100
Q

What measures are in place for the RICS to protect client’s money?

A
  • Clients’ Money Protection Scheme.
  • This is a free service provided to clients of RICS-regulated firms.
  • Is an insurance policy to cover client’s direct loss of funds due to a firm regulated by the RICS.
  • All regulated firms who hold clients’ money pay a regulatory review fee on an annual basis.
101
Q

What is the RICS Regulatory Board?

A
  • RICS Regulation is administered by the RICS Regulatory Board, which is chaired by a non-member of RICS to demonstrate that our regulation of members is independent and at arm’s length from the interest of our members.
  • The Regulatory Board meets regularly to decide policy on regulatory matters and oversee implementation of the regime. It is responsible to RICS Governing Council for its decisions.
  • The Assigned Risk Pool and the Conduct and Appeals Committee also help in regulating the profession.
  • Stephen Haddrill - Chair of the Global Regulatory Board
102
Q

What is the special Anniversary RICS are celebrating this year (2018)?

A

2018 marks the 150th anniversary of RICS. In order to celebrate this milestone, we have launched two initiatives that highlight the achievements of the profession and demonstrate its importance to society, both in the past and in the future

103
Q

What two initiatives are the RICS promoting as part of its 150 year anniversary?

A
  1. opened an exhibition at our HQ on Parliament Square, London. The exhibition - called ‘Shaping the World, Building the Future’ - offers a rare opportunity to see first-hand the positive impact and significant contribution that surveyors all over the world have made to society over the last 150 years. As part of the celebrations, our iconic HQ - built in 1899 - has been recreated in Lego.
  2. The Pledge150 campaign will see RICS partner with property industry charity LandAid, to lead the built environment sector in raising £2.25m to help fight youth homelessness.

APC Mandatory (10 decks)

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