Conduct Rules, Ethics... Flashcards by Sean McDonagh

Name and describe 3 rules from the RICS rules of conduct for members

Ethical behaviour - Members act with integrity, avoid conflict of interest and act in consistently with their professional obligations
Competence- carry out professional work with due skill care and diligence
Service - carry out service in a timely manner with good customer care

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Name 3 rules from the RICS for firms and explain them

Service - firm must carry out service in a timely manner with good customer care
Advertisement - firm shall promote their service only in a truthful and responsible manner
Solvency - a firm must ensure its finances are managed appropriately

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Name 3 of the RICS 5 ethical standards

High level of service
Act with integrity
Show respect to others

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Explain 1 of the RICS ethical standards

High level of service

Ensuring your client receives the best possible service and performance upon what you have agreed

Be clear about services you are providing

Be transparent about fees and payments

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What is a conflict of interest?

Where someone’s personal interests conflict with their professional interests owed to their employer

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What does the RICS conflict of interest professional statement say a member MUST do, including informed consent?

1 - identify and manage conflict of interest in accordance with the RICS statement

2 - keep records of decisions made in relation to accepting individual assignments, obtaining informed consent and measures taken to avoid conflict of interest

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What is an information barrier?

Physical or electronic separation of individuals within the same firm which prevents confidential information passing between them

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What must a complaints procedure have?

1 - consideration of the complaint by senior management of the firm

2 - if the complaint cannot be resolved, a third party must be given authority to resolve

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What professional indemnity (PI) insurances does a firm require?

1 - each and every claim basis

2 - RICS minimum policy wording

3 - PI cover minimum level of indemnity

£100k or less = £250k
£100.01k to £200k = £500k
£200.01k or above = £1m

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What does the bribery act say?

Bribery act 2010

Promotes anti bribery practices amongst businesses

Is an offence to fail to prevent bribery that is intended to improve business

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What is your opinion on gifts and hospitality?

Politely decline

Don’t want to accept something that affects my impartiality or influences my professional decision making

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What are the requirements for a firm to be registered by RICS?

Notify the RICS 
Have adequate PI insurance, based on estimated turnover
Register with RICS 
Regulated by RICS
Clients money obligations 
Complaints handling procedure
Staff training and development

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How would you correctly hold clients money?

Hold it in a separate bank account

Bank account to have clients in the title

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What are the CPD requirements for an RICS member?

20 hours of CPD

At least 10 hours must be formal training

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What are the disciplinary procedures of the RICS?

1 - Make further enquiries
2 - inform the person of the enquiry, they can respond within 28 days
3 - Decide whether there are grounds for the complaint
4 - If there is, issue consent order or fixed penalty

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Why does RICS have Rules for members and firms?

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Ensure high standards among its members and firms, failure to meet these rules could end in expulsion from RICS

Who do the RICS rules for members and firms protect?

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They protect members, employers, clients, the public – they are there to protect everyone.

Who regulates RICS?

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RICS is a self- regulating body

How does RICS maintain standards?

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It has a set of rules of conduct for both members and firms that they are expected to follow

Why is it important that RICS have rules?

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To ensure that its members work to a high professional standard and to give clients and the public confidence in their ability.

RICS has based its rules on a set of 5 principles of good regulation. Can you tell me what they are? What does this tell you about RICS?

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Proportionality - regulators should only intervene when necessary. Remedies should be appropriate to the risk posed and costs identified and minimised.
Accountability - regulators must be able to justify decisions and be subject to public scrutiny.
Consistency - Government rules and standards must be joined up and implemented fairly.
Transparency - regulators should be open and keep regulations simple and user-friendly.
Targeting - regulations should focus on the problem and avoid a scattergun approach.

It tells you that RICS takes its rules and ethical standards very seriously and that it is transparent about this.

What areas do the rules for members cover?

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Ethical behaviour, members shall act with integrity and avoid conflict of interest.
Competence, members carry out their work with due care, skill and dilligence.
Service, members shall carry out with in a timely manner with a high standard of service.
CPD, members shall comply with CPD requirements.
Solvency, members shall ensure their personal and professional finances are managed appropriately.
Information to RICS, submit info in a timely manner in the correct format.
Cooperation, members shall cooperate fully with RICS staff.

What areas do the rules for firms cover?

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Professional behaviour, firm shall act with integrity and avoid conflicts of interest.
Competence, firms carry out their work with due care, skill and dilligence.
Service, firms shall carry out with in a timely manner with a high standard of service.
Training & CPD, ensure staff are properly trained and competent to do their work.
Complaints handling, operate and maintain a complaints handling procedure
Clients money, preserve the security of clients money
PI Insurance, shall ensure that all previous and future work is covered by adequate PI insurance.
Advertising, promote services in a truthful and responsible manner.
Arrangements to cover in event of incapacity or death of sole practitioner.
Use of designation, must display its regulated by RICS
Information to RICS, submit info in a timely manner in the correct format.
Cooperation, shall cooperate with RICS staff

If you are successful today you may decide to set up your own business. What does RICS expect you to have in place?

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PI Insurance  
Complaints handling procedure 
Security of clients’ money 
Trained and competent staff 
Finances are managed properly

What is run off cover?

Insurance that should be in place after retirement or a firm ceases to trade – minimum of 6 years.

What other insurances should you have in place if you run your own business?

Buildings, employer’s liability, third party liability

When would you have a locum?

If I was a sole practitioner. I would have to notify the RICS. The locum must have PI cover.

How many RICS ethical standard for members are there? Can you name them>

There are 5. ``` 1 Act with integrity 2 Take responsibility for your actions 3 Provide a high standard of service 4 Act in a way which promotes trust in the profession 5 Treat others with respect ```

A subcontractor offers you tickets to a major sporting event. Would you take them?

No, as it may be seen as a conflict of interest

You are approached at a social function and asked for professional advice? What would you do?

You would suggest that you make an appointment for them to come into the office and discuss the issue.

What would you do if you thought an RICS member was behaving unethically and not abiding by the rules?

Collect facts – take advice – refer to RICS Decision Tree. Contact RICS if you are sure after collecting evidence etc.

Tell me what you know about RICS.

- It was founded in 1868. - The first President was John Clutton. - The RICS motto is “There is measure in all things” - RICS has approx. 140,000 members in 150 countries - RICS accredits more than 500 university degrees across the world - RICS is structured into world regions – UK, Europe , Americas, ASEAN, China and East Asia, MENEA, Oceania. - It covers 21 disciplines from Arts and antiques to Valuation.

Who is the current President of RICS?

President - Kathleen Fontana President elect - Clement Lau The president changes yearly

What is the name of the body that governs RICS and that sets the rules of conduct? How is it made up?

- International Governing Council. | - Chaired by the President and includes representatives from the world regions. Meets 3 times a year.

How many RICS professional groups are there?

Who is the RICS CEO? | Where is RICS Headquarters?

- Sean Tompkins | - Parliament Square London

Why do you want to become an RICS member?

It’s a goal of mine to progress my career RICS is the premier surveying organisation in the world. It shows clients that you work to a high ethical and professional standard.

How could you help RICS if you become a member?

- Encouraging staff to pursue RICS membership. - Act as a Supervisor/Counsellor for staff undertaking their APC. - Train to become an RICS Assessor. - Become involved with RICS locally.

Conduct Rules, Ethics... Flashcards

(38 cards)