Level 3 - Conduct rules, Ethics and Professional Practice Flashcards
1
Q
What are the different types of OJEU?
A
- Restricted
- Open
- Competitive negotiation
- Competitive dialogue
2
Q
N1. How does the RICS discipline members?
A
•When an allegation is received, the RICS Head of Regulation will:
- Make further enquiries.
- Inform the person the allegation is made against in writing, who can write a response within 28 days.
- Decide whether there are grounds for the complaint. o
- If there is, they will either:
- Issue a consent order.
- Issue a fixed penalty.
- If there is, they will either:
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.
4
Q
N3. Does the RICS publish any guidance on the Disciplinary Measures?
A
• Yes, there is a large section on the RICS website.
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.
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.
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
8
Q
N7. Who is the president of the RICS?
A
John Hughes FRICS
9
Q
N8. Who is the president elect?
A
• Tim Neal FRICS
10
Q
N9. What current themes does Chris Brook promote?
A
He will be focusing on three key areas during his term;
- promoting and highlighting the value of the work undertaken by surveyors,
- making sure our profession is prepared for the future and
- speaking out on the big issues of our time (the challenges posed to the built and natural environment by rapid urbanisation, climate change, digitalisation, evolving business models and new consumer habits.)
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.
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 118,000 members.
13
Q
N12. Where is the RICS Head Quarters?
A
• Parliament Square, London.
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.
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.
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.
17
Q
N16. How many professional groups are there?
A
• 17.
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.
19
Q
N18. What are the duties of the 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.
20
Q
N19. What are the three market sectors covered by the RICS?
A
- Land.
- Property.
- Construction.
21
Q
N20. What is the Governing Structure for the RICS?
A
- There is a 70 strong governing council chaired by the president.
- They meet two times a year.
- New president every year.
22
Q
N21. can you describe the RICS governing structure to me?
A
- At the top is the Governing Council.
- Below this is the Regulatory Board, (the Audit Committee, Regulatory Board, Nominations Committee and an Administrative Appeals Panel) and the Management Board.
- Below the Management board there is:
- Knowledge board
- World Regional Board.
- Finance Comittee.
- Renumerations Comittee
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.
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.
25
N24. What did the Carsberg Report introduce?
* 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.
26
N25. What Help Sheets does the RICS publish?
• Helpsheets on:
o CPD.
o Complaints Handling Procedure.
o Handling Clients Money.
o PII Requirements.
27
N26. How many levels of RICS membership are there?
• 4.
28
N27. What are the four levels?
* Trainee.
* Associate.
* Member.
* Fellow.
29
N28. How do you become a fellow?
All Chartered Members (MRICS) are eligible to apply for fellowship, subject to the rules of conduct for members. To qualify as an RICS Fellow, you’ll need to show how your career experience demonstrates four out of 12 professional characteristics.
30
N29. What is the APC?
• The Assessment of Professional Competence is a period of structured training followed by a Final Assessment Interview.
31
N30. What different routes can you take to APC?
32
N31. What is the route for an associate member?
33
N32. What is Lionheart?
• A benevolent fund dedicted to providing support and financial aid to current and past members and their families.
34
N33. If you become qualified, how will you become involved with the RICS?
* I will attend RICS events.
* Become and APC supervisor.
* Respond to Surveys and Consultations.
35
N34. Would you like to become an APC Assessor?
• Yes, I would like to keep learning and broadening my understanding of the profession.
36
N35. How do you become an assessor?
• Must be MRICS for three years, plus a 1 day training course.
37
N36. What is the role of the APC Supervisor?
* 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.
38
N37. What benefits will you gain from becoming MRICS?
* 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.
39
N38. What is the ‘Black Book’?
• A suite of best practice guidance notes and technical standards.
40
N39. Can you name some of the Black Books?
* Valuing Change.
* Retention.
* Acceleration.
41
N40. What is the ‘Red Book’?
• Practice guidance for Valuation Surveyors.
42
N41. What are the Five Principles for Better Regulation?
* Accountability.
* Consistency.
* Proportionality.
* Targeting.
* Transparency.
43
N42. Who determines the Five Principles for better regulation?
Regulatory Board
44
N43. What is the difference between ethics and rules?
* Ethics are a moral principle and value.
* Rules are the framework we work to.
45
N44. What are the Global Professional and Ethical Standards?
* Always act with integrity.
* Act in a way that promotes trust in the profession.
* Always provide a high standard of service.
* Take responsibility.
* Treat others with respect.
46
N45. What does providing a high level of service mean to you?
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
N46. What does promoting trust in the profession mean to you?
Acting in a manner, both in your professional life and private life, 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
N47. What does acting with Integrity mean to you?
This means being honest and straightforward in all that you do.
* 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
N48. What does taking responsibility mean to you?
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
N49. What does treating others with respect mean to you?
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
N50. Why does the RICS have rules of conduct?
• They provide a framework we can all work to, whilst ensuring a Client understands exactly the service they should be receiving.
52
N51. How many Rules of Conduct are there from Members?
9
53
N52. Can you list the Rules of conduct for members?
1. Interpretation of member
2. Communication.
3. Ethical Behaviour.
4. Competance
5. Service
6. CPD
7. Solvency
8. Information to RICS
9. Cooporation
54
N53. How many Rules of Conduct are there for Firms?
• 15
55
N54. Can you list the Rules for firms?
1. Interpretation of firm.
2. Communication.
3. Professional Behaviour.
4. Competance
5. Service
6. CPD and training
7. Solvancy
8. Information to RICS
9. Cooporation
10. Handling clients money
11. Complaints handling procedure
12. Professional indemnity insurance
13. Advertising
14. Locum arrangements
15. Use of Designations
56
N55. What do you do if you find a member working outside the RICS Rules of Conduct?
* 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
N56. What are the RICS Disciplinary Procedures?
* 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
N57. How can a disciplinary procedure be triggered?
* Complaints to the RICS.
* Allegations by Clients/Third Parties.
59
N58. What disciplinary actions can be taken?
* Consent order.
* Fixed Penalty.
60
N59. What is a Consent order?
• A written instruction from the RICS to improve/implement corrective procedures for the party in question.
61
N60. What may the fixed penalties be?
* Caution
* Unlimited Fine.
* Member expulsion.
62
N61. What can result in expulsion?
* Fraud.
* Dishonesty.
* Criminal Offence.
63
N62. How are Disciplinary Breaches published?
* Hearings are posted on the RICS website 14 days prior.
* Decisions are published online/local paper.
64
N64. How do you keep up-to-date with topical issues?
* Receive email notifications from the RICS
* DEFRA updates
* RICS news online.
65
N65. What would you do if a contractor invited you to a hospitality event?
* Politely decline.
* I wouldn’t want to accept any hospitality which may be considered to affect my impartiality.
* I would also record any gifts I receive within the business register.
66
N66. What would you do if a client offered you hospitality?
* Politely decline.
* I wouldn’t want to attend anything that may compromise my impartiality.
* If they insist then I would pay my own costs.
* I would also record any gifts I receive within the gift register.
67
N67. What is a conflict of interest?
• When someone in a position of trust has competing personal or professional interests, making it difficult from them to fulfil their duties impartially.
68
N68. How do you proactively avoid claims?
* 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.
69
N70. How can you limit your liability when agreeing terms of appointment.
• Sign underhand whenever possible.
70
N71. What would say is conduct unbefitting a chartered surveyor.
Conduct not inline with the Global Professional Ethical Standards.
Such as:
* Dishonesty.
* Criminal convictions.
* Acting improperly in a conflict of interest situation.
71
N72. What do you need to do to set up a new RICS Firm?
* 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.
72
N73. What are the RICS CPD requirements?
* 20 hours CPD, of which 10 is formal.
* Maintain relevant understanding of the RICS ethics.
* Record CPD activities online.
73
N74. What is a bribe?
• An exchange of value for an improper cause.
74
N75. . What Regulation covers money laundering within the UK?
• The UK Money Laundering Regulation 2007.
75
N76. Who does the UK Money laundering Regulation 2007 apply to?
• Anybody in the regulated sector.
76
N77. What are regulated firms required to do?
• Put in place systems to stop money laundering.
77
N78. What are the indicators of Money laundering?
* Secretive Client.
* Not knowing where the money is coming from.
* Paying in a special way, i.e. cash.
78
N79. What publications does the RICS publish relating to Bribes?
• Money Laundering Guidance 2011.
79
N80. What would you do if a Client offered to pay you in cash for your works?
• 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.
80
N81. What law governs the act of Bribery within the UK?
The Bribery Act 2010.
81
N82. What are the penalties for committing a bribe within the UK?
* Up to 10 years in prison.
* Unlimited fine.
82
N83. What are the 6 Principles to mitigate a bribe?
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.
83
N84. What are the four types of Bribes?
1. Giving.
2. Requesting.
3. Offering.
4. Receiving.
84
N85. What is classed as a bribe under the Bribery Act 2010?
* Bribing a public official.
* Facilitation payments.
* Failing to prevent a briber by a commercial organisation.
85
N86. What are facilitation payments?
• A type of bribe in which a government official is given money or goods to perform a service to speed up an existing duty.
86
N87. What are they types of RICS Published Documents?
* Practice Statement.
* Code of Practice.
* Guidance Note.
* Information Paper.
87
10.3 What is the difference between an Institute and an Institution?
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.
88
10.7 Why do you want to join the RICS?
* 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.
89
10.20 If you were to set up your own company what would you need to do to set this up?
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.
90
10.21 What are the Money Laundering regulations (2007)?
* 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.
91
10.28 What is a conflict of interest?
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.
92
10.29 When can a conflict of interest occur?
* 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.
93
What measures are in place for the RICS to protect client’s money?
* 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.
94
What is the RICS Regulatory Board?
* 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
95
What are the five principles of better reguation?
1. Accountability.
2. Consistency.
3. Proportionality.
4. Targeting.
5. Transparency.
96
What critical things do you need to put in place if setting up as a Sole Practitioner?
* Complaints handling procedure
* Clients money
* Professional Indemnity Insurance
97
Give an example of when you have acted with integrity?
98
Give an example of when you have provided a high standard of service?
99
Give an example of when you have acted in a way that promotes trust in the profession?
100
Give an example of when you have treated others with respect?
101
Give an example of when you have taken responsibility?
102
What are the Global Professional and Ethical Standards?
* Act with Integrity
* Act in a way that promotes trust in the profession
* Always provide a high standard of service
* Treat others with respect
* Take responsibility
103
1. Are you aware of the 5 Principles of Better Regulation stated in the foreword of Members and Firms rules?
2. Can you pick one of the 5 principles and explain what you understand it to mean?
1. Yes
2. This discusses that the Regulator(s) must be adopt a common sense approach and that rules and standards must be joined up and implemented fairly. Regulators should be consistent with each other, and work together in a joined-up way. New regulations should take account of other existing or proposed regulations, whether of domestic, EU or international origin. Regulation should be predictable in order to give stability and certainty to those being regulated. Enforcement agencies should apply regulations consistently across the country.
104
Give some examples of how you reflect the RICS ethical standards in your work.
1. Integrity - turning down an invitation from a contractor whilst settling the final account
2. High standard of service - referring clients to specialists when scope is outside competence
3. Trust - rejecting the early certification of work
4. Respect - working with people from different backgrounds equally
5. Responsibility - questioning unsafe working on site
105
What is the RICS Decision Tree?
Flowchart to help members decide how to act in difficult situations where their professional ethics may be at stake
106
