RICS ETHICS Flashcards
What is the meaning of the RICS Motto
There is measure in all things
What is the mission statement of the RICS
1 - Maintain and ensure consistency and trust in the profession
2 - Provide professional support/development to members to offer high standards and services
3 - Promoting trust within the profession
When was RICs founded
1868
How is RICS Structured
Privy Council
Governing Council
Boards and Committees
RICS 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 we work to
Is there a conflict of interest if the QS and EA are from the same company
The EAs role is often to review and approve the QS’s work they need to ensure fair and unbiased decision making.
The RICS does not prohibit a firm acting as both QS or EA on the same project
What are the 3 types of conflict of interest
Party conflict - Where members or firms act for multiple parties eg representing the buyer and seller
Own interest conflict - Where members personal or financial interests could interfere such as having a stake in a property being valued
Confidential information conflict - When a member has access to sensitive information from one client which can benefit another client
What are the 5 rules of conduct
1-Members and firms must be honest, act with integrity and comply with their professional obligations, including obligations to RICS
2-Members and firms must maintain their professional competence and ensure that services are provided by competent individuals who have the necessary expertise.
3-Members and firms must provide good-quality and diligent service.
4-Members and firms must treat others with respect and encourage diversity and inclusion
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.
What is the professional obligation for members?
The following professional obligations to RICS are mandatory for RICS members.
1. Members must comply with the CPD requirements set by RICS.
2. Members must cooperate with RICS.
3. Members must promptly provide all information reasonably requested by the Standards and Regulation Board, or those exercising delegated authority on its behalf.
What are the professional obligations for 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 on their business literature, 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 for the Registration of Firms.
What is the professional indemnity insurance requirement?
£100,000 or less requirement £250,000
£100,001 to £200,000 requirement £500,000
£200,001 and above requirement £1,000,000
What is the consequence of failing to comply with RICS ethical standards?
Consequences can include disciplinary action, fines, suspension, expulsion from RICS, and reputational damage.
How should RICS professionals ensure they remain ethical in their work?
- Review ethics tree
- Review with line manager
- CPD to develop further learning
You discover an error in a valuation report after submission. What do you do?
I would inform the client and issue a revised version
I will also make a note so this mistake does not happen again
How would you deal with a complaint?
Acknowledge Promptly – Respond in writing and provide a copy of your Complaints Handling Procedure (CHP) as required by RICS Rule 4.
Inform complaints handle manager
Investigate Fairly – Gather all relevant documents, speak to involved parties, and ensure an impartial review of the complaint.
Respond Formally – Provide a written resolution detailing findings, any corrective action, and next steps for escalation.
If client is not satisfied then a partner would be involved and if still not satisfied then ADR will be applied
Offer Alternative Dispute Resolution (ADR) – If unresolved, refer the complainant to an RICS-approved ombudsman (e.g., TPO, CEDR, or RICS Dispute Resolution Service).
Learn & Improve – Identify complaint trends and update procedures or training as needed.
Escalate to RICS (if needed) – If the complaint involves serious breaches (e.g., misconduct or negligence), RICS may investigate and take disciplinary action
How is client money handled?
Separate Client Account – Client money must be held in a designated Client Account with an FCA-authorized bank, separate from business funds.
Client Consent & Agreements – Written agreements must outline how funds will be used, where they are held, and any interest distribution.
Accurate Records & Reconciliation – Maintain detailed transaction records and conduct monthly reconciliations to ensure accuracy.
Proper Use of Funds – Client money must only be used for its intended purpose, with no unauthorized deductions.
Protection & Compliance – Firms must have Professional Indemnity Insurance (PII) and, where required, Client Money Protection (CMP) membership.
Regular Client Statements – Clients must receive clear statements and audit trails upon request.
Reporting Issues – Any discrepancies must be immediately investigated and reported to the compliance team, RICS, and the client.
What is the requirement of registration for the RICS?
At least one MRICS/FRICS Principal
📌 Register the firm with RICS
📌 Appoint an RICS Responsible Principal & Compliance Officer
📌 Implement RICS-compliant policies (CHP, PII, Risk Management, Ethics, GDPR, Client Money Handling if applicable)
📌 Annual compliance reporting to RICS
📌 Use of “Regulated by RICS” branding upon approval in accordance to the Designation policy
At least 50% of the firm’s principals (Directors/Partners) must be Chartered Members (MRICS or FRICS).
The Structure of RICS
Governing Council – The highest decision-making body, responsible for RICS’ strategy and governance.
Regulatory Board – Oversees ethics, professional conduct, and disciplinary matters.
Professional Groups – Sector-specific groups that set standards and best practices (e.g., Quantity Surveying, Valuation, Building Surveying).
RICS Matrics – Supports young professionals and students entering the profession.
RICS LionHeart – A charity providing financial, emotional, and professional support to RICS members and their families.
Mandatory Professional Statements ?
Must comply example Conflict of interest
Guidance Notes and Their Status?
Mandatory – Members must comply (e.g., Conflicts of Interest).
Best Practice – Strongly recommended, but not enforceable.
Information Only – General reference materials.
The Role of Professional Groups
RICS is divided into Professional Groups, each responsible for setting standards and best practices within specific industry sectors. Some key groups include:
Quantity Surveying & Construction – Cost management and contract administration.
Building Surveying – Building pathology, inspections, and defect analysis.
Valuation – Property valuation and financial analysis.
Land & Resources – Land surveying, rural property, and environmental impact.
Bodies within RICS
RICS Matrics – Supports young professionals, trainees, and newly qualified surveyors by offering networking events, mentoring, and career development.
LionHeart – A charitable organisation that supports RICS professionals and their families with mental health, financial aid, and career support.
RICS publishes policy documents that provide recommendations for
Industry best practices.
Government lobbying on property and construction issues.
Sustainability and environmental impact policies.
Examples:
RICS Sustainability and ESG Guidance.
Policy statements on housing and infrastructure development.
What is a help sheet?
Help Sheets provide concise practical guidance on specific technical or professional issues. Examples include:
How to handle client money.
Steps for ethical procurement.
Best practices for valuation disputes.
These are used as quick references but do not carry the same weight as Professional Statements or Guidance Notes.
RICS Bye-laws?
RICS Bye-laws set out the governance, regulatory, and operational framework of RICS. They define:
The roles of RICS Governing Council and regulatory boards.
Membership requirements and disciplinary procedures.
The obligations of RICS professionals and regulated firms.
Government, Legislation, and Regulation?
RICS professionals must comply with UK government laws and regulations, including:
✅ Bribery Act 2010 – Prevents corruption and unethical practices.
✅ Building Safety Act 2022 – Governs construction and safety regulations.
✅ GDPR (General Data Protection Regulation) – Ensures client data protection.
✅ Construction Act 1996 – Regulates payments and dispute resolution in construction.
What does common law refer to?
Common law refers to case law and legal precedents that impact RICS professionals, particularly in areas like:
Contract law – Governs construction contracts and obligations.
Negligence – Holds surveyors accountable for errors in professional work.
Tort law – Covers liability for damages caused by professional misconduct.
