RICS Ethics

Question 1

1). What are the RICS Ethical Standards? 5 Core Standards

Answer 1

– Act with Integrity
– Always Provide a High Standard of Service
– Act in a way that Promotes Trust in the Profession
– Treat Others with Respect
– Take Responsibility

Question 2

1a). What does Integrity Mean to you?

Answer 2

– Being trustworthy in all that you do.
– Being Open and transparent in your actions.
– Being respectful of confidentiality.
– Not accepting or offering gifts or hospitality that may impact your ability to act impartially, or may give that impression to others.
– Not taking advantage of those whom you owe a duty of care.
– Not allowing bias or conflict of interest influence your professional judgements.
– Acting consistently in the public interest.

Question 3

1b). What does it mean to you to provide a high standard of service?

Answer 3

– About providing the best possible advice, support or performance of the terms of your engagement or appointment. – Also about being clear with your client what service you can provide and what services you will provide under your appointment. – About not acting outside of your competence. – About being clear and transparent about fees. – About good communication with your client. – If you use other services you should pay for those within the terms and conditions agreed. – About putting fair treatment of clients at the core of your business.

Question 4

1c). What does promoting trust in the profession mean to you?

Answer 4

– This is about promoting what you and the profession stand for.
– In both your professional and private life.
– Its about fulfilling your obligations.
– Trying to meet the spirit of the profession,
– About acting with integrity, providing a high standard of service, treating others with respect and taking responsibility.

Question 5

1d). What does treating others with respect mean to you?

Answer 5

– This is about always being courteous, polite and considerate to everyone.
– About not discriminating against others for any reason.
– About fair and respectful treatment of others no matter who they are.

Question 6

1e). What does taking responsibility mean to you?

Answer 6

– This is about being accountable for your actions.
– About acting with skill, care and due diligence.
– Also about being prepared to question something when you believe it does not meet the standards of the profession.
– About responding quickly and professionally to complaints made against you.

Question 7

2). What are decision trees?

Answer 7

– These help provide guidance and support when making decisions and professional judgements.
– Using a decision tree with the responses YES, UNSURE, and NO can help ensure that the appropriate decision is made before an action is taken.

Question 8

3). What are the appropriate steps for making decisions around Gifts and Hospitality?

Answer 8

1) . What is the value of the gift or hospitality. 2). Who is the gift or hospitality being given to? Is it just one person or a range of people from different organisations?
3) . Is the gift or hospitality reasonable and proportionate?
4) . Does the gift or hospitality have a genuine business purpose?
5) . When is the gift or hospitality given?
6) . How easy or difficult is it when offered the gift or hospitality to decline it there and then?

Question 9

3). What are the appropriate steps for making decisions around Gifts and Hospitality?

Answer 9

ACTIONS:
– Gather the facts that you have; do you have enough information to come to a decision?
– Speak to someone about your concerns.
– Be as open and as transparent as possible.

Question 10

4). What is and what does the RICS stand for? Who are the key personnel?

Answer 10

– Royal Institution of Chartered Surveyors
– Awarded Royal charter in 1881 to maintain and promote usefulness of the profession for public advantage.
– It is an international institution that offers advice on property, construction, project management, dispute resolution and environmental issues.
– President: Amanda Clack
– Vice President: Chris Brooke
– Approximately 125,000 members globally. Made up of 17 groups.

Question 11

5). What is the role of the RICS?

Answer 11

– Has 4 main roles:
– Regulate and promote the profession
– Maintain the highest educational and professional standards
– Protect clients and consumers through a strict a code of ethics and professional standards.
– Provide impartial advice, analysis and guidance.

Question 12

6). What is the structure of the RICS?

Answer 12

– Privy Council (at the top); grants awards and Royal Charter.
‘– GOVERNING COUNCIL (Centre); Presidential team manages obligations, direction and strategy of RICS.
– Management Board (Right); day to day performances and delivery of business plan.
– Regulatory Board (Left); reports solely to the governing council on its activities.
– Audit Committee (Bottom); provides audit reports and carries out nominations processes.

Question 13

7). You’re under pressure to make a decision quickly, but you’re not sure if it’s legal; should you proceed, seek more information or stop?

Answer 13

– Seek more information

Question 14

8). Who should you speak to for further advice, your manager, RICS regulation or a colleague or peer?

Answer 14

– All of the above.
– You should speak to who is best place to offer advice and also who you are comfortable talking about it to.
– If they share your concerns then work out what steps to take next in order to resolve the matter.

Question 15

9). A supplier invites you to a social event, but you are concerned about how other suppliers who compete for the same work will view it. What should you do?

Answer 15

– Politely decline.
– If you feel that the invitation would impact your ability to make unbiased decisions OR if you think other would perceive it that way, don’t accept.

Question 16

10). How many rules of conduct are there for RICS members?

Answer 16

– 7 – Ethical behaviour – Competence – Service – Lifelong Learning (CPD) – Solvency – Provide Information – Co–Operation

Question 17

11). How many rules of conduct are there for firms?

Answer 17

– 7 Conduct of Business and 6 Firm Admin

Question 18

12). What are the Conduct of business rules of conduct?

Answer 18

– Professional behaviour 
 – Competence 
 – Service
 – Training / CPD 
 – Complaints Handling 
 – Client's Money
 – PI Insurance

Question 19

13). What are the Firm Admin rules of conduct?

Answer 19

– Advertising    – Solvency
 – Arrangements to cover incapacity / death of sole practitioner 
 – RICS designations
 – Provide Information 
 – Co–operation

Question 20

14). What firms are regulated by the RICS?

Answer 20

– Those with over 50% of partners / directors that are members of the RICS, or those with less that have applied.

Question 21

15). What is PI insurance?

Answer 21

– This is professional indemnity insurance
– Sometimes known as errors and omissions insurance (E&O), provides insurance cover against claims of professional negligence.
– For the party taking out the insurance, the policy will also cover the cost of defending claims of negligence made against it. (Subject to T&Cs).
– The policy is written on the basis that it covers claims made during the period of insurance. Usually 12 months.
– Difficulties can arise where the full extent of a claim is not known during one period of insurance.

Question 22

16). What is Lionheart?

Answer 22

– Benevolent fund established over 100 years ago to support RICS professionals and their families.
– Offers advice and n certain circumstances financial assistance
– It is independent to the RICS
– Run by RICS members.

Question 23

17). What is the RICS foundation?

Answer 23

– Independent worldwide charitable foundation – Founded by the RICS in 2000
– Raises awareness about issues of concern within the built and natural environment
– Supports and promotes research and disseminates the results to the industry.

Question 24

18). What must a complaints handling procedure include?

Answer 24

– The RICS provides a model form.
– Must include a redress mechanism (Mechanism to remedy or compensate aggrieved party).
– Details should be issued to client with terms of business
– It must be clear, transparent, impartial and free of charge
– The complaint must be investigated within 28 days
– All complaints, their progress and outcomes must be recorded
– Must have two stages as a minimum
– If not resolved, it should be referred to an independent third party with authority to award redress.

Question 25

19). What is a conflict of interest?

Answer 25

– Someone or a firm in a position of trust has competing interests (personal or professional interest).
– This makes it difficult for them to fulfil their duties impartially.
– Perception; Even if individuals to not act on their competing interests, other parties may perceive this differently.

Question 26

20). What steps should be taken if there is a conflict of interest of two clients represented by the same firm?

Answer 26

– Should be open with both parties.
– Disclose conflict to all parties client the possibility, nature and circumstances of the conflict, in writing.
– Inform them that you would be unable to continue acting for them unless written Informed consent is given by both parties to do so.
– Can only act if in the benefit of all parties involved.

Question 27

21). What steps should be taken if there is a personal conflict?

Answer 27

– Disclose the relevant facts promptly in writing.

Question 28

22). What are the lifelong learning requirements of CPD?

Answer 28

– Continuous Professional Development
– Members must undertake and record appropriate lifelong learning, and upon request provide evidence that they have done so.
– This is to maintain and improve levels of professional competence.
– A minimum of 10 hours Formal and 10 hours Informal must be undertaken and recorded each year.

Question 29

23). What would you do if a contractor asked you to go to a football match?

Answer 29

– I would politely decline the invitation.

– I would not want to accept any hospitality that may appear to impact myability to act impartially.

Question 30

24). When is it acceptable to accept gifts or hospitality?

Answer 30

– May be acceptable to receive gifts of low value or for marketing purposes.
– Hospitality received in the course of a business meeting that can be reciprocated like a working lunch.
– Anything that affects your professional opinion or ability to act impartially should be politely declined.

Question 31

25). Once chartered how would you deal with a situation such as a friend asking you to provide them with QS advice?

Answer 31

– If employed at a company, it is possible to offer impartial / informal advice without individual PI insurance,
– However I would have to make it known that the opinions were my own and not that of the company.
– The advice would also have to be informal unless under an official appointment.
– If I had my own PI insurance then I would ensure the information given was thoroughly checked and in accordance to the RICS before issue.
– I would inform them that they could contact me during working hours to discuss T&C’s of an official appointment.
– Personally I would not feel comfortable acting for them, I would advise them to use the RICS ‘find a surveyor scheme’.
– At all points of offering advice or services I would adhere to the rules of conduct.

Question 32

26). A junior surveyor at your company accidentally over values a valuation. What would you do?

Answer 32

– First I would check all the facts to ascertain whether or not it had actually been over certified.
– I would then check whether the valuation had been processed yet.
– If not, I would withdraw and rectify the error on the valuation before re–issue.
– If already issued and processed I would explain to the parties and rectify the error in the next valuation.
– I would ensure there was a process in place going forward to ensure that this error would not happen again.

Question 33

27). What is the RICS black book?

Answer 33

– A suite of guidance notes that define good technical standards for QS and construction professionals.
– Standards are essential development tools for younger professionals and a useful guide to best practice for experienced professionals.
– The standards provide certainty and consistency in QS processes.
– These eliminate ambiguity and promote best practice .

Question 34

28). Who is the president of the RICS?

Answer 34

John Hughes FRICS

Question 35

29). Who is the president elect?

Answer 35

Chris Brooke FRICS – RICS President Elect

Question 36

30). Who is the senior vice president?

Answer 36

Tim Neal FRICS

Question 37

31). Who is the Secretary to the profession?

Answer 37

Bill Gater

Question 38

32). Who is the CEO of the RICS?

Answer 38

Sean Tompkins

Question 39

33). What is a conflict of interest?

Answer 39

– Three Main Types of Conflict of interest:
– Party Conflict,
– Own Interest Conflict,
– Confidential Information Conflict

Question 40

34). What is a Party Conflict?

Answer 40

– A situation in which the duty of an RICS member or a regulated firm to act in the interests of a client or other party in a professional assignment conflicts with a duty owed to another client or party in relation to the same or a related professional assignment (a ‘Party Conflict’)

Question 41

35). What is Own conflict of Interest?

Answer 41

– A situation in which the duty of an RICS member or a regulated firm to act in the interests of a client in a professional assignment conflicts with the interests of that same RICS member/ firm (or in the case of a regulated firm, the interests of any of the individuals within that regulated firm who are involved directly or indirectly in that or any related professional assignment).

Question 42

36). What is confidential information conflict?

Answer 42

– A conflict between the duty of an RICS member to provide material information to one client, and the duty of that RICS member or of a regulated firm to another client to keep that same information confidential.

Question 43

37). What does the RICS code of conduct set out for RICS members around conflict of interests?

Answer 43

– An RICS member or regulated firm must not advise or represent a client where doing so would involve a Conflict of Interest or a significant risk of a Conflict of Interest

Question 44

38). Is it ever appropriate to act where there is a risk of conflict of interest?

Answer 44

– ONLY where all of those who are or may be affected have provided their prior Informed Consent.
– Informed Consent may be sought only where the RICS member or regulated firm is satisfied that:
– Proceeding is in the interest of all those who are or may be affected
– It is not prohibited by law.
– Acting would not prevent the member from providing diligent and competent advice.

Question 45

39). What are the duties of an RICS member or regulated firm around conflict of interest?

Answer 45

– Identify and manage conflicts of interest.
– keep records of the decisions made in relation to whether to accept (and where relevant, to continue).
– Individual professional assignments,
– The obtaining of Informed Consent,
– Any measures taken to avoid Conflicts of Interest arising.

Question 46

40) Publications

Answer 46

–Bribery  Act       –Data  Protection Act    
–Royal Charter and Bye–Laws 
–Designated  Professional Body Rules
–Ombudsman  Services
– RICS client's money protection scheme