Ethics

Question 1

How would you define ethical behaviour for a chartered surveyor?

Answer 1

Acting in accordance with the 5 RICS professional and ethical standards:

1. Act with integrity
2. Always provide a high standard of service
3. Act in a way that promotes trust in the profession
4. Treat others with respect
5. Take responsibility

Question 2

Why are the ethical standards important?

Answer 2

Create a clear and streamlined guide to members to ensure that clients and anyone else who deals with the RICS has confidence in the profession

Question 3

Give some examples of how you could reflect the RICS ethical standards in your work.

Answer 3

1. Integrity - turning down an invitation from a contractor whilst settling the final account
2. High standard of service - referring clients to specialists when scope is outside competence
3. Trust - rejecting the early certification of work
4. Respect - working with people from different backgrounds equally
5. Responsibility - questioning unsafe working on site

Question 4

What is the RICS Decision Tree?

Answer 4

Flowchart to help members decide how to act in difficult situations where their professional ethics may be at stake

Question 5

What factors does the RICS Decision Tree consider?

Answer 5

1. Sufficient facts
2. Legality
3. Ethical standards
4. Consultation of appropriate people
5. Clear reasoning
6. Impact if actions made public

Question 6

What is a conflict of interest?

Answer 6

Anything that impedes or might be perceived to impede an individual’s or firm’s ability to act impartially and in the best interest of a client. such as:

1. Acting for two different parties with competing interests at the same time
2. Financial interests (e.g. gaining over and above your normal fee)
3. Personal relationship
4. Commercial relationship
5. Interests of your firm conflict with that of your client

Question 7

What should a surveyor do if a conflict of interest arises?

Answer 7

1. Should be dealt with by implementing openness and transparency
2. Declare any conflicts of interest clearly to all parties ASAP and offer to stand down from acting for any party
3. All parties can then decide how they wish to proceed and if there are any objections you must stand down

Question 8

What is a ‘Chinese Wall’?

Answer 8

An information barrier within an organisation used in order to prevent exchanges or communication that could lead to a conflict of interest

Question 9

Can one part of a chartered surveying practice work for a client, whilst another part of the practice is working for a different client who has conflicting interests to the first?

Answer 9

Yes, providing a Chinese wall is effectively implemented
Teams should be physically separated in different parts of the building (or in different buildings)
Requires a compliance officer to monitor the ‘wall’ - education and training must be made available to those managing the wall

Question 10

What is the purpose of the RICS?

Answer 10

1. Regulate and promote the surveying profession
2. Maintain the highest educational and professional standards
3. Protect clients and consumers via a strict code of ethics
4. Provide impartial advice and guidance

Question 11

What is the purpose of the Royal Charter?

Answer 11

1. Changes a body from a collection of individuals into a single legal entity
2. Written description of the RICS’ powers (e.g. self-regulation) and obligations (e.g. advancement of knowledge, appointment of a Governing Council etc.)
3. Requires the RICS to develop the profession for the public advantage
4. Allows members to use the term ‘chartered’ in their job title

Question 12

What are bye-laws?

Answer 12

A list of laws applied internally using powers granted by the Royal Charter (aka the RICS’ constitution)

Question 13

Explain the relationship between the Privy Council and the RICS.

Answer 13

• Privy Council - a body set up in the early days of the monarchy to advise the king/queen on matters of state and not put before parliament
• Any changes to the bye-laws have to be approved by the UK Government, through the Privy Council, even if the changes have already been approved by a majority vote of RICS members

Question 14

What is the RICS Governing Council?

Answer 14

• Manages the Royal Charter Obligations, setting direction and strategy
• Establishes the Regulatory Board, Management Board and other committees (e.g. Audit Committee)

Question 15

How is the RICS Governing Council elected?

Answer 15

1. Elections are held every two years and are open to all FRICS, MRICS and AssocRICS members
2. Comprises of members from world regions, specific countries, regions of England, the professional groups, Matrics and members as a whole
3. All Members can vote in the whole membership category
4. For geographical seats, only Members based in that geographical area may vote

Question 16

How many RICS regional boards are there in the UK?

Answer 16

Nine regional boards:

1. East Midlands
2. East of England
3. London
4. North East
5. North West
6. South East
7. South West
8. West Midlands
9. Yorkshire and the Humber

Question 17

What professional groups are there within the RICS?

Answer 17

Three sectors contain different RICS professional groups:

1. Land (e.g. environment, minerals and waste, planning and development etc.)
2. Property (e.g. valuation, facilities management, residential property etc.)
3. Construction (e.g. building surveying, building control, project management, quantity surveying etc.)

Question 18

What is RICS Matrics?

Answer 18

• Established to support, develop and provide networking for its members, who are either entering or not long qualified in the surveying profession
• Organises networking opportunities, charity events and CPD, as well as providing a voice for individuals new to the profession

Question 19

What is Lion Heart?

Answer 19

• Charity funded through past and present RICS members
• Provides support to members (past and present) and their families, including financial support, health and wellbeing packages and work-related support

Question 20

What is the BCIS and what is its relationship to the RICS?

Answer 20

• Building Cost Information Service (BCIS) is published by the RICS
• It provides independent cost and price information for key areas in the construction industry

Question 21

Who is the current RICS President?

Answer 21

Clement Lau FRICS - RICS President

Question 22

How does the RICS discipline members?

Answer 22

• When an allegation is received, the RICS Head of Regulation will:
• Make further enquiries.
• Inform the person the allegation is made against in writing, who can write a response within 28 days.
• Decide whether there are grounds for the complaint.
• If there is, they will either:
• Issue a consent order.
• Issue a fixed penalty.

Question 23

What is a regulatory compliance order (used to be consent order)?

Answer 23

• An order outlining what needs to be changed. It will usually outline what actions need to be taken, and by what date they need to be achieved.
Caution
Reprimand
• Pay a fine.
• Pay RICS Costs.

Question 24

What issues do you know about that the RICS are looking into?

Answer 24

The rising prices of housing in relation to the lack of supply and over demand. Further to this, house building is driving the current construction industry boom.

Question 25

Where is the RICS Head Quarters?

Answer 25

Parliament Square, London.

Question 26

Can you describe the RICS governing structure to me?

Answer 26

Top is privy council that grants awards and royal charter 1. Then Governing Council - sets strategy and provides high level assurance 2. Below this is the Standards and Regulatory Board, the Audit Committee and the Management Board. 3. Below the Management board there are 3sub-boards, being: a. Regional boards b. Finance committee. c. Remunerations committee 4. Separate independent regulatory tribunal

Question 27

What is the Carsberg Report?

Answer 27

A report undertaken in 2005 as a result of members general dissatisfaction with the RICS’ internal Regulatory procedures.

Question 28

What did the Carsberg Report introduce?

Answer 28

* The conduct board, who operate the disciplinary measures. * The requirement for firms to be regulated as well as Members. * The Rules of Conduct, which have subsequently been revised into their most recent format in 2013. * A profession that is better regulated.

Question 29

What Help Sheets does the RICS publish?

Answer 29

o CPD. o Complaints Handling Procedure. o Handling Clients Money. o PII Requirements.