SOE direct Qs - Mandatories Flashcards
What is RICS rule of conduct 1?
Members/firms must be honest, act with integrity and comply with professional and RICS obligations
What is RICS rule of conduct 2?
Members/firms must maintain professional competence and ensure services are provided by competent individuals with the necessary experience
What is RICS rule of conduct 3?
Member/firms must provide good quality and diligent service
What is RICS rule of conduct 4?
Members and firms must treat others with respect and encourage diversity and inclusion.
What is RICS rule of conduct 5?
Members/firms must act in the public interest, take responsibility for actions, prevent harm and maintain public confidence in the profession
Why were the new rules of conduct brought in?
To simplify the structure and to provide clear behaviour examples for each rule.
What is an example behaviour of rule 1?
Members and firms do not allow themselves to be influenced improperly by others (eg. gifts, hospitality or payments) or by their own self-interest.
What is an example behaviour of rule 2?
Members and firms only undertake work that they have the knowledge, skills and resources to carry out competently
Members maintain and develop their knowledge and skills throughout their careers by undertaking relevant CPD.
What is an example behaviour of rule 3?
Members and firms understand clients’ needs and objectives before accepting any professional work.
Members and firms undertake their work in a timely manner.
What is an example behaviour of rule 4?
Members and firms treat everyone fairly and do not discriminate against anyone on any improper grounds.
Members and firms work cooperatively with others.
What is an example behaviour of rule 5?
Members and firms question practices and decisions that they suspect are not right, and raise concerns with the appropriate person.
The Rules of Conduct are based on what 6 ethical principals?
honesty
integrity
competence
service
respect
responsibility
When were the new rules of conduct effective from?
February 2022
When were the new rules of conduct published?
October 2021
What is a conflict of interest?
A conflict of interest is where someone in a position of trust has competing personal or professional interests making it difficult for them to fulfil their duties impartially
What is conflict avoidance in the context of conflict of interests?
You do not accept the instruction as there is a conflict of interest
what is conflict management in the context of conflict of interests?
when the instruction is accepted and steps are put in place to manage the conflict, eg information barrier with the written agreement of all parties
when did the RICS Global Professional standard: Conflicts of Interest 2023 come into effect?
19th july 2023
what is informed consent?
Consent given willingly by a party who may be affected by a conflict of interest. - must be given in writing and the situation must be explained entirely transparently to the affected party so that they know what they are doing
What are the 3 types of conflict of interest?
- Party conflict - relating to work on the same/related instruction for 2 different parties
- Own interest conflict - relation to personal interest
- Confidential information conflict - work between 2 parties that is confidential
What else must firms do to comply with the the RICS Global Professional standard: Conflicts of Interest 2017?
All firms must keep accurate records and have effective systems in place
What is an information barrier?
The physical and/or electronic separation of individuals (or groups of individuals) within the same firm that prevents confidential information from passing between them.
Why are conflict checks important?
Ensure impartiality and integrity as per Rules of Conduct (2022)
Ensure accurate work is undertaken that isn’t influenced by external factors
What is an example of where you have seen a conflict of interest managed in your firm
A member of my firm sent out a conflict of interest check after being asked to value a plot of land.
Another member of my firm then responded to check by confirming that the firm were acting on behalf of the developer looking to acquire the land and therefore the decision was made to decline the instruction to value the land.
This meant the conflict was avoided