Rules of Conduct & Ethics Flashcards
what are the five rules of conduct introduced February 2022 ?
- Members and firms must be honest, act with integrity and comply with their professional obligations to RICS.
- Maintain their** professional competence **and ensure that services are provided by competent individuals who have the necessary expertise
- Must provide good quality and diligent service.
- Must treat others with** respect and encourage diversity** and inclusion.
- Must act in the** public interest**, take responsibilities for their actions and act to prevent harm / maintain public confidence.
Rule 1: Example of where you have been honest and acted with integrity?
Don’t accept bribes where it might skew your opinion on something
Approached by contractor for tickets to an event if we used them for contractual work. Didn’t accept.
Rule 2: Example of where you have maintained professional competence?
Undertake CPD and ensure you are complying with requirements set by RICS
Rule 3: Example of providing good quality service?
Getting back to clients in a timely manner when it comes to any management concern.
Rule 4: Provide example of respect and encouraging diversity and inclusion
Some apprentices joined our team, so I welcomed them and tried to include them.
Rule 5: Example of acting in the public interest, responsibility and public confidence
Respond to complaints made promptly and professionally
What would you do if one of your colleagues acting wrongly in the rules of conduct?
Raise it internally to my line manager. If that was ignored, then report to RICS.
What are the necessary steps to start your own RICS Business?
Inform RICS and register for regulation
Professional indemnity insurance
Appoint complaints handling officer
Set up apropriate proceudres if handing clients money
Compliance with statute IE Equality health and safety, money laundering act etc.
RICS designation
Why do we need Rules of Conduct?
Knowing Chartered Surveyors have to follow these rules, gives client and the public comfort - they know that we would face disciplinary action if we failed to meet these rules.
CPD?
20 hours ( 10 formal, 10 informal)
What is Negligence?
A breach of a duty of care which causes loss
A Duty of Care exists to clients and third parties, using a ‘reasonable care and skill’. When breached there is a loss and a claim for damages arises.
Thought there could be a conflict of interest?
Notify all parties of potential conflict; stating when the conflict arise
- Manage conflict with all written agreement between all parties
- Avoid it, suggest another surveyor take over the works.
When would a conflict be unmanageable to manage a conflict and decline an instruction?
If your impartiality judgement is compromised.
What are the changes to the RICS code of conduct
diverse and inclusion
sustainability
simpler structure
clear examples
Talk me through what you would do if you were going to set up as a sole practioner?
Professional Indemnity Insurance - It protects clients, surveyors and third parties against negligence claims when there is duty of claim breached and a claim for damages arises
What is the minimum level of professional indemnity insurance and run off cover required?
£100,000 or less - £250,000 per claim
£100,000- £200,000 - £500,000 per claim
£200,000 - £1m per claim
What is the minimum level of uninsured excess?
Up to and including £500k - The greater of 2.5% of the sum insured or £10k
Over £500,000 - 2.5% of the sum insured
What are the Professional Obligations to the RICS ?
- Members must comply with CPD requirements
- Members must co-operate with RICS
- Members must promptly provide all information reasonably requested by Standards and Regulation Board, or those exercising delegated authority on its behalf
Essentially lack of CPD or failing to cooperate with RICS = could see you expelled from RICS
How would you handle clients money?
- Accounting systems must be securely controlled and protected
- Client accounts must be named and have word ‘client’ in name of account
- Client money should always be available on demand and should always be in credit, but there are circumstances where management agreements may different (Fine as long as agreed in PMA - EG for emergency funds) .
In what circumstances could there be a Conflict of Interest?
- May occur when advising seller and buyer simultaneously
- May have obligations/pressures which detract from your relationship with the client - can’t act as expert witness in court in situ where already involved (and court don’t know about it)
- Might be acting for two or more parties competing for an opportunity
