Mandatory - Ethics, Rule of Conduct & Professionalism Flashcards
What is the RICS Motto?
Est Modus in Rebus (There is measure in all things)
What is the mission statement of the RICS?
- To qualify and equip their members to offer the highest standards of professional service.
- To promote and enforce standards
- To lead solutions to the major challenges facing the built environment through professional expertise.
When was the RICS founded?
1868
What are the RICS’s 5 Principles of better regulation?
- Proportionality
- Accountability
- Consistency
- Targeting
- Transparency
What is the difference between RICS ethics and rules?
Ethics are a set of moral values
Rules of conduct are a framework that we work to
How many Global Professional and Ethical Standards are there?
Up until 1st February 2022 there were 5 global professional & ethical standards
From the 2nd February 2022 onwards the Global Professional & Ethical Standards have been consolidated within the New Rules of Conduct 2022
What are the New Rules of Conduct?
Rule 1: Members and firms must be honest, act with integrity and comply with their professional obligations, including obligations to RICS
Rule 2: Members and firms must maintain their professional competence and ensure that services are provided by competent individuals who have the necessary expertise.
Rule 3: Members and firms must provide 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.
Why did the previous Rules of Conduct change?
The previous rules had been in place since 2007
Following research and consultation with RICS members and the public majority voted in favour of replacement
This was to provide a single document to enable greater clarity for RICS members and firms
There is now a greater focus on clearer example behaviors, understanding evolving technology and tackling climate change
Talk us through your understanding of the Rules of Conduct changes?
Appendix A of the new Rules of Conduct now contains the professional obligations of Members and Firms
The Rules of Conduct October 2021 Global Practice Statement will overhaul the previous separate documents:
- Rules of conduct for Members
- Rules of conduct for Firms
- Global Professional and Ethical Standards
What are the professional obligations of members?
- Members must comply with the CPD requirements set by the RICS with requires 20 hours of CPD for each calendar year, 10 hours of which must be formal
- Members must cooperate with RICS
- Members must promptly provide all information reasonably requested by the Standards and Regulation Board, or those exercising delegate authority on its behalf
What are the professional obligations of firms?
- Firms must publish a complaints-handling procedure, which includes an alternative dispute resolution provider approved by RICS, and maintain a complaints log.
- Firms must ensure that all previous and current professional work is covered by adequate and appropriate professional indemnity cover that meets the standards approved by RICS
- Firms with a sole principal must make appropriate arrangements for their professional work to continue in the event of their incapacity, death, absence from or inability to work.
- Firms must cooperate with RICS
- Firms must promptly provide all information reasonably requested by the Standards and Regulation Board, or those exercising delegated authority on its behalf
- Firms must display or their business literate, in accordance with RICS published policy on designations, a designation to denote that they are regulated by RICS.
- Firms must report to RICS any matter that they are required to report under the Rules of the Registration of Firms
Why does the RICS have Rules of Conduct?
- To provide a framework that we can all work to and so the client knows he is getting a set level of ser
What is the role of the RICS?
Promotes and enforces the highest professional qualifications and standards in the developments and management of land, real estate, construction and infrastructure.
What does RICS stand for?
Royal Institue of Chartered Surveyors
Who founded the RICS?
John Clutton
What year was the RICS founded?
1868
When was the RICS granted Royal Charter?
1881 – granted by the Privy Council
Who is the current president of the RICS?
Ann Gray
Who is the president elect / next years President and there manifesto?
Tina Paillet
Sustainability and Technology
What is the current membership of the RICS?
160,000
What are the levels of membership?
Trainee, AssocRICS, MRICS, FRICS
How do you become a Fellow?
5+ years MRICS, professional / technical achievement, a leadership role, raising the profile of the RICS
What is the governance structure of the RICS?
RICS is self-governed under the terms of its Royal Charter. The Bye-Laws and Regulations, which are approved by the Privy Council through the Governing council, set out the governance of the institution.
What is the organizational structure of the RICS?
- Privy Council
- Governing Council (25 members)
- Regulatory Board
- Audit Committee
- Management Board
What are the Regulations as approved by the Governing Council?
- Definitions
- Membership and Registration
- Designations
- Contribution to Funds
- Conduct
- Governing Council, Officers and Staff
- Subordinate Boards, Committees and Groups
- Procedure for General Meetings and Voting
- Accounts and Audit
- General
Are you aware of some of the aims within current RICS Business Plan?
Incorporation of the Levitt Report Recommendations
- Be more open and transparent with members and public about institution decision making and finances.
- Development more effective whistleblowing arrangement
Financial
Support the profession as economy recovers, minimize subscription cost increases
What was the Levitt review?
Independent commissioned report following a Treasury management audit in 2018 due to inaccurate cash flow forecasting.
The report illuded to power issues with the two-board structure of a management board and executive. It provided recommendations that the RICS governing council to have more oversight of processes and called for greater transparency.
Are you aware of any key updated following the Levitt report?
- Appointed a new leadership team
- New President (Clement Lau)
What is the Bichard Review?
A review of the RICS purpose, governance and strategy as called for by the Levitt Review and approved by the RICS Governing Council.
What were the findings of the Bichard review?
36 recommendations in total.
* A renewed and increased focus on the public interest remit of RICS, including amending the Royal Charter and creating a public interest panel to advise Governing Council
* Maintaining self-regulation, through greater independence for regulatory functions
* Increased focus on Diversity and Inclusion across the profession and within RICS governance
* Empowering and enabling members through greater support for regional boards, alongside increased member engagement, with renewed focus on younger members
* Undertaking an independent review of RICS’ governance and effectiveness at delivering against its Charter for the public advantage once every five years
* A new simplified, clear, accountable governance structure
* Showing greater leadership on the issues that matter most to society, such as sustainability and climate change
Five working groups will be established to progress the recommendations.
What are some major challenges currently facing the RICS?
Loss of institutional trust (Levitt / Bichard Review)
Rapid urbanisation
Climate change
Impact of big data and artificial intelligence
What is the purpose of the RICS?
To promote and enforce the highest professional standards in the development in the built environment.
Why do you want to be a member of RICS?
- Status – client confidence
- Recognition – professional excellence
- Market advantage – competitive
- Knowledge – practice standards, professional guidance, CPD
- Network – access to professionals worldwide
What are the benefits for firms to be regulated by RICS?
- Confidence – client confidence
- Professionalism – must provide impartial expert advice
- Security – access to free independent redress and PII cover
What are the steps that must be taken if you qualify and want to start your own firm?
- Inform the RICS
- Register for regulation
- Obtain appropriate Professional Indemnity Insurance
- Put a Complaints Handling Procedure in place
- Health & Safety policy (if more than 5 employees)
- Set up procedures for handling clients’ money
- Set up appropriate staff training
- Appoint a ‘responsible principal’
What about from a statutory perspective to open your own firm?
- Disclose business name
- Inform HMRC of VAT and tax registration
- Insurances (employer and public liability)
- Register for data protection
- Financial legislation:
o Appoint a Money Laundering Reporting Officer
o Bribery Act Compliance
o Financial Services Compliance - Employment Legislation:
o Employment Law Compliance
o Equality Act Compliance
o H&S at Work Act Compliance - Building Legislation:
o Fire Safety Order Compliance
o Asbestos register
What must you do if you want to close down your practice?
- Inform the RICS
- Inform clients at earliest opportunity and make handover arrangements to another firm
- Return any clients’ money being handled
- Inform insurers and obtain PII run-off cover for a minimum of 6 years
- Retain copies of client files and records for 6 years minimum
What are International Standards?
Mandatory high-level, principle-based standards.
E.g., International Property Measurement Standards (IPMS)
What are Professional Statements?
Mandatory standards.
E.g., Conflicts of Interest 2017