Ethics

Question 1

What is the purpose of the RICS?

Answer 1

a) Global professional, standards and regulatory body
b) secure the advancement and usefulness of the profession for the public advantage - provide expert advice to governments, business & the public
c) set standards in the public interest
d) deliver support that is valued by RICS members and their employers
e) develop professional skills and knowledge
f) expand opportunities for members to apply professional skills
g) regulating skilled professionals with the highest ethical and technical standards

Question 2

How does the RICS fulfil it’s purpose? - wide!

Answer 2

• Maintains trust and confidence in the profession
• Maintains its own and professions relevance
• Remains financially secure to maintain the RICS for future generations

Question 3

What does the RICS do to achieve it’s purpose?

Answer 3

• Set standards for entry into membership
• Support trainees
• Maintain a register for members and assuring members continuing competence
• Setting professional and technical standards and regulating against these
• Engaging with members, facilitating networking, gain insight and input to support the work of RICS and members
• Understanding differing markets that global membership works in and ensuring strategies are targeted to be relevant to all members
• Providing guidance, information, knowledge and training
• Working with employers to help them train, develop and support members
• Provide leadership on major issues affecting the natural and built environment and surveying practice
• Engaging with market participants such as governments to increase understanding of the profession, its standards and work to increase professionalism in the sector
• Delivering relevant products and services to third parties to reinvest profits in delivery the purpose of RICS

Question 4

What is the purpose of the Royal Charter?

Answer 4

-Changes a body from a collection of individuals into a single legal entity
-Requires the RICS to develop the profession for the public advantage
-Requires changes in RICS constitution (bye-laws) have to be ratified by the UK Gov (Privy Council) even after they are approved by the majority of members
-Allows members to use the term ‘chartered’ in their job title

Question 5

What is the RICS Governance Structure?

Answer 5

Privy Council - grants & award the royal charter

Governing council - made up of:
- Standards and regulation board
- Management board
- Audit, risk assurance & finance committee
- Nominations & remuneration committee

Question 6

What is better regulation?

Answer 6

It means members aren’t regulated by government. They are internally monitored to meet Government principles

Question 7

Explain the relationship between the Privy Council and the RICS.

Answer 7

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 8

What are the new rules of conduct?

Answer 8

Members and firms:
1) Must be honest, act with integrity and comply with their professional obligations, including obligations to the RICS. E.g. do not mislead others by their actions or omissions, identify potential conflicts of interest, be open and transparent on fees

2) Maintain professional competence and ensure services are provided by competent individuals with necessary expertise. E.g only undertake work with knowledge and skill for, supervise work undertaken, reflect on work they have done and undertake CPD

3) Provide good quality and diligent service. E.g. Understand client needs before accepting work, agree scope of services, communicate to clients the information that advice is based on

4) Treat others with respect & encourage diversity and inclusion. E.g. respect the rights of others and treat them with courtesy, di not discriminate, work co-operatively with others

5) Act in public interest, take responsibility for actions and act to prevent harm and maintain public confidence in the profession. E.g question decisions suspected that are not right, support colleagues who have acted in good faith to report concerns, respond to complaints made against them properly, openly and professionally, take appropriate action when they consider rules have been breached

Question 9

What are individuals professional obligations to the RICS?

Answer 9

‘1) Must comply with CPD requirements
2) Must cooperate with RICS
3) Must promptly provide all information reasonably requested by the Standards and Regulation Board, or those exercising authority on their behalf

Question 10

What are firms professional obligations to the RICS?

Answer 10

‘1) Must publish complaints handling procedure, which includes ADR provider approved by RICS and maintain a complaints log

2) Ensure all previous and current professional work is covered by adequate and appropriate PII that meets standards approved by RICS

3) Firms with sole principal must make appropriate arrangements for their professional work to continue in the event of incapacity

4) Must cooperate with RICS

5) Must promptly provide all information reasonably requested by the Standards and Regulation Board

6) Must display that they are regulated by RICS on their literature

7) Must report to RICS any matter that they are required to report under the Rules for the Registration of Firms

Question 11

Give an example of when you acted with integrity on your project?

Answer 11

Client requesting reduction of capex cost for purpose of selling with planning permission and making more desirable. I assessed that this was not ethical and declined the request for cost amendment

Question 12

What are the ethical standards?

Answer 12

Honesty, Integrity, Competence, Responsibility, Service and Respect

Question 13

Why were the rules of conduct updated?

Answer 13

• To provide a simpler structure (replaced individual documents for rules for members, firms)
• Provide clear examples to support members’ professional judgement
• Focus on respect, diversity and inclusion
• Understanding evolving technology
• Tackling global challenges including sustainable development

Question 14

What documents relate to Conflicts of Interest?

Answer 14

RICS PS Conflicts of Interest January 2018, amended in January 2022 to reflect New Rules of Conduct

Question 15

How is the Conflicts of Interest document built up?

Answer 15

3 parts:
- RICS mandatory rules and definitions
- General commentary as to how firms and members apply the professional statement
- Supporting commentary on how firms and members can meet obligations

Question 16

Under Conflicts of Interest, what are the mandatory rules?

Answer 16

1. Conflicts of Interest - must not advise or represent a client where it would involve a CoI or a significant risk of a COI other than where those who may be affected have provided prior informed consent where it is in the interest of those affected and not prohibited by law and competent, diligent advise is not impacted. Where working independently, records of the decisions must be kept
2. Confidential information - Must maintain confidentiality unless disclosure is required or permitted by law. Must provide every client with all the information that is material to that client’s professional assignment
3. Firm systems and controls - Firm must have in place effective systems and controls appropriate to the size and complexity of their business to ensure compliance with PS

Question 17

Under Conflicts of Interest, what Parts of the professional statement ? (incl. types of CoI)

Answer 17

1- Conflicts of Interest
2- Confidential information
3- Firm systems and controls
4- Definitions
5- Scope and application
6 - Effective date (Jan 2018 with 2022 amendments)

Question 18

What are the commentary notes on Conflicts of Interest?

Answer 18

• Advisory guidance on how to adhere to mandatory professional statements
• Prevent anything getting in way of duty to advise and represent clients objectively and independently
• Protection of development of the profession for public advantage
• Prohibits continuing where no Informed Consent is obtained
• Should only continue with Informed Consent should all parties interests be able to be served
• The uncertainty of the impact of the conflict of interest should be continued even with Informed Consent
• Where a CoI does not exist at the outset and should be considered as assignments progress

Question 19

What documents are you aware of relating to Bribery and Money Laundering?

Answer 19

RICS PS Countering Bribery and Corruption, Money Laundering and Terrorist Financing 2019
Bribery Act 2010
Sanctions and Anti-Money Laundering Act 2018
Arup’s Business Integrity Code of Practice

Question 20

What are the three parts of the RICS PS on Bribery & Money Laundering?

Answer 20

1: Mandatory requirements
2: Guidance on good practice
3: Supplementary guidance

Question 21

What must RICS firms /members do in relation to bribery & corruption?

Answer 21

Firms
- Not offer or accept anything that could constitute a bribe
- Have plans in place to comply with applicable laws
- Report activity / breaches they are aware of
- Act with due diligence to perform periodic evaluations of risks facing the firm
- Retain information on how firm meets the requirements
- Register gifts etc
- Provide guidance to staff
- Appoint contactable person for ethical matters

Individuals
- Ensure adequate knowledge on bribery and corruption
- Report
- Not offer or accept

Question 22

What are the 4 crimes under the Bribery Act 2010?

Answer 22

• Receiving a bribe
• Giving a bribe
• Bribing a public figure
• To not have procedures in place to mitigate / prevent bribery

Question 23

What policies does Arup hold relating to Bribery, Money Laundering and Conflicts of interest?

Answer 23

Business Integrity Code of Practice sets out firms policies and requirements for members on Bribery & Corruption; H&S; Gifts & Hospitality; Conflicts of interest etc

Question 24

What is Arup’s policy on Gifts and Hospitality?

Answer 24

• Regard cultural perspectives when considering gifts
• Consider the implications of offering / accepting
• Not accept or offer where it is felt objective judgement will be impaired
• Request gifts or hospitality

Question 25

What is Arup's policy on fraud?

Answer 25

- Maintain strong internal controls, checks and balances - Make sure expenditures are approved - Only make financial commitments on behalf of Arup where we have authority to do so - Report any suspected - Not claim recompense for something not believed entitled to

Question 26

What is Arup's policy on Conflicts of Interest?

Answer 26

- Monitor throughout project's lifestyle - Be objective and transparent in managing a COI - Seek guidance from the Legal team - Don't act as an expert in a case where Arup has an interest - Judge one part of Arup's designs in an external competition

Question 27

How does the RICS ensure members abide by the Rules of Conduct for Members?

Answer 27

- Regulatory Tribunal Rules set out processes - Where serious enough Head of Regulation will consider disciplinary action - Where less serious and member admits allegations, Head of Regulation may impose Regulatory Compliance Order - Where less serious and member does not admit allegations, case may be referred to Single Member of the Regulatory Tribunal - Most serious, Disciplinary Panel may be drawn from the independent Regulatory Tribunal and conduct hearing and impose sanctions Head of Regulation at the RICS investigates claims of misconduct. They have the power to: 1. Serve a Fixed Penalty notice 2. Make a Regulatory Compliance Order 3. CPD sanctions 4. Refer to a Disciplinary Panel Member has right to appeal decision made at a Disciplinary Panel by going to an Appeal Panel

Question 28

What are the aims of Rules of Conduct? 2022

Answer 28

Support positive change in the built environment through promoting and enforcing highest ethical standards. Based on ethicalprinciples of honesty, integrity, competence, service, respect & responsibility

Question 29

What are the 5 rules of conduct? 2022

Answer 29

- Members must act with honesty, integrity and comply with professional obligations - Must maintain professional competence and ensure services are provided by competent individuals - Must provide good quality and diligent service - Must treat others with respect and encourage diversity and inclusion - Must at in the public interest, take responsibility for their actions and act to prevent harm and maintain public confidence in the profession

Question 30

What professional obligations to the RICS do members have? 2022

Answer 30

- Must comply with CPD requirements - Must co-operate with the RICS - Must promptly provide all information reasonably requested by the Standards and Regulation board

Question 31

What professional obligations to the RICS do firms have? 2022

Answer 31

-Must publish complains handling procedure including dispute resolution provider and complaints log - Ensure previous and current work is covered by PII that meets RICS standards - Sole principals must make appropriate arrangements for professional work in the event of being unable to continue e.g. death - Must co-operate with RICS - Must provide all information reasonably requested by Standards and Regulation Boar Must display on their business literature a designation to denote they are regulated by RICS Must report to RICS any matter that they are required to report under the Rules for the Registration of Firms

Question 32

What is the RICS Governing Council?

Answer 32

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

Question 33

How is the RICS Governing Council elected?

Answer 33

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

Question 34

How many RICS regional boards are there in the UK?

Answer 34

Nine regional boards: East Midlands East of England London North East North West South East South West West Midlands Yorkshire and the Humber

Question 35

What are bye-laws?

Answer 35

A list of laws applied internally using powers granted by the Royal Charter (aka the RICS' constitution) 10 bye laws such as 5 (conduct with rules made by regulatory board), 6 (accounts and audit)

Question 36

Who are the main members of the RICS?

Answer 36

- President - Ann Gray - President-elect - Tina Paillet - CEO - Richard Collins (ensuring market trust & standards)

Question 37

Name some of the RICS professional groups?

Answer 37

- Quantity surveying & construction - Valuation - Building surveying - Dispute resolution

Question 38

What is a Conflict of Interest?

Answer 38

Situation where duty to someone is potentially compromised by the fact you have a material interest at stake Personal interest interferes with the ability to act in the interest of the other person

Question 39

Under Conflicts of Interest PS 2017, what are the mandatory rules?

Answer 39

1. Conflicts of Interest - must not advise or represent a client where it would involve a CoI or a significant risk of a COI other than where those who may be affected have provided prior informed consent where it is in the interest of those affected and not prohibited by law and competent, diligent advise is not impacted. Where working independently, records of the decisions must be kept 2. Confidential information - Must maintain confidentiality unless disclosure is required or permitted by law. Must provide every client with all the information that is material to that client's professional assignment 3. Firm systems and controls - Firm must have in place effective systems and controls appropriate to the size and complexity of their business to ensure compliance with PS

Question 40

What types of document do the RICS publish?

Answer 40

- RICS Rules of Conduct - rules set out and expected of professional conduct - International standard - high level standard developed with other bodies - Professional Statement - mandatory requirements for members - Guidance Note - recommendation for advice and good practice - Code of Practice - developed with other professional bodies and have the status of professional statement or guidance note

Question 41

What is Bribery?

Answer 41

To offer something of value in order to persuade someone to do something in their job without regard to whether they should do it given their job-related obligations

Question 42

How would gifts be dealt with if they are common place internationally?

Answer 42

My companies policy is to not accept gifts and my obligations to the company require me to comply. Where working in a country where this is common place, I would put it within the contractual documentation and therefore put it back in my companies hands, I would develop the relationship in other ways by taking time to discuss their life outside of work etc

Question 43

What if you are working internationally where a bribe is considered common practice?

Answer 43

There are no countries where bribery is openly and publically defended as ethical, whilst it may be common practice. This acceptance is different to bribery being morally acceptabl

Question 44

What is Ethics?

Answer 44

Study of moral right and wrong in human character and behaviour. It aims to identify underlying principles to explain ordinary ethical thinking. About how the world should be What is moral, not what is legal

Question 45

What are the two most known general theories of Ethics?

Answer 45

- Deontological (right and wrong based on rules) - Immanual Kant, acting in accordance with duties and rights - Consequentialist (based on consequences) - rules for the sake of the consequences. Jeremy Betham

Question 46

What is a profession?

Answer 46

An occupation / vocation. More narrowly it is one that has special features - Service provider with specialised skills / knowledge - CPD maintains knowledge - Belong to a professional body which enforces code of ethics - Strong duties to clients and the public - Client relationships dependant on trust - Professional body ensuring only well-qualified individuals can practice

Question 47

Why do service providers professionalise?

Answer 47

- Clients and public are unable to judge the quality of the service due to lack of knowledge - Service can impact greatly, positively or negatively - Trust in service provider

Question 48

How do codes of ethics benefit?

Answer 48

- Service user can trust the professional has upheld the code of ethics due to implications of breaches - Ensures professionals are serving the public interest - Encourages to see work differently to non-professionals - Help professionals resist pressure - Maintains standards across professionals - Gives justification for resisting financial and managerial pressures - Ensure consistency in decision making - Promote and reflect virtuous behaviour such as honesty & integrity

Question 49

What makes it harder to uphold integrity?

Answer 49

Most professionals are in corporate structures or practices where thy=ey must attract clients in competitive market Makes it harder to cite public interest against clients

Question 50

What are the ethical principals of the RICS Rules of Conduct?

Answer 50

- Honesty, Integrity, Competence, Service, Respect, Responsibility

Question 51

What are the 5 Rules of Conduct?

Answer 51

- Act with Honesty, Integrity and comply with professional obligations - Maintain professional competence - Provide quality & diligent service - Treat others with respect and encourage EDI - Act in the interest of the public, take responsibility for actions, prevent harm and maintain confidence

Question 52

What is the difference between rules and principles?

Answer 52

Rules - imperative directions to do or not do something, imposed by external authorities e.g. state or regulator such as RICS. Impose losses, harms or disincentives. Struggle to capture every situation Principles - aspirational standards from internal motivation. More widely applicable, can weigh competing considerations in a conflict

Question 53

What is integrity?

Answer 53

- Broader concept than honesty - Disagreement about it's specific meaning - Reflect higher standards that society expects from professionals

Question 54

What are the 2 key components of whistleblowing?

Answer 54

- Report is made to someone outside of the normal channels eg. Not just line manager - Report made to someone in a position to act

Question 55

What would you do in a conflict of interest?

Answer 55

Ensure I declared the conflict of interest to all parties and offer to step down from my role. If the parties agreed that they were comfortable with me continuing in my role then I could do so, if both clients stood to gain by you acting despite the conflict, but otherwise I would have to step down, perhaps recommending a colleague. Seek Informed Consent. Continue to review the situation, keep record of decisions

Question 56

New professional statement defines conflict of interest; can you tell me the three different types?

Answer 56

* Party conflict -if acting for one client conflicts with a duty owed to another client * Own interest conflict -if acting for a client conflicts with your own interests * Confidential information conflict -if information is required by one client but there is a duty to another client to keep that information confidential

Question 57

What does the Royal Charter require RICS to do? What does it require of surveying?

Answer 57

To 'maintain and promote the usefulness of the profession for the public advantage'. Surveying - ""securing the optimal use of land and its associate resource to meet social and economic needs"" - provides a foundation for effective markets - better places to live and work - force for positive social impact

Question 58

Explain your understanding of Rule Number 1

Answer 58

- Should not allow selfs to be influenced improperly through acceptance of work, referrals, gifts or hospitality - Must identify CoI and not provide service where these occur - Must not mislead others by actions or omissions

Question 59

Explain your understanding of Rule Number 2

Answer 59

- Only act where they have the necessary knowledge, skills & resources to carry out the work competently - Must supervise any employees or subcontractors undertaking work on their behalf - Must reflect on their work and the impacts, consider how they may apply lessons learnt

Question 60

Explain your understanding of Rule Number 3

Answer 60

- Must be sure to understand project specific requirements. Including agreeing scope of service, expectations and timelines before agreeing to a formal contract

Question 61

Explain your understanding of Rule Number 4

Answer 61

- Expected to respect rights of others and with courtesy - Ensure everyone is treated fairly and eliminated any instances of discrimination - no tolerance policy to bullying / harassment

Question 62

Explain your understanding of Rule Number 5

Answer 62

- Question practices and decisions they suspect are not right and raise concerns with colleagues, senior management, clients or RICS - When making public statements, ensure these do not undermine public confidence - When receiving and processing complaints we need to ensure they are dealt with promptly, openly & professionally

Question 63

What are the professional obligations of members?

Answer 63

- Must comply with CPD requirements - 20 hours per year - Must co-operate with RICS - Must promptly provide all information reasonably requested by Standards and Regulation Board

Question 64

What are the professional obligations of firms?

Answer 64

- Must publish a complaints handling procedure including an ADR provider approved by RICS - Maintain complaints log - Ensure appropriate PII - Ensure incapacity cover for sole trader - Must cooperate with RICS - Must promptly provide all information reasonably requested by Standards & regulation Board - Must display on business literature that they are regulated by RICS

Question 65

You mention the Bribery Act 2010. What are the six principles in addressing bribery risks?

Answer 65

- Proportionality of system - Top level commitment - Risk assessment - Due diligence - Communication - Monitoring & review

Question 66

What is Informed Consent?

Answer 66

This is to be obtained where a CoI is identified. Must make clients aware of the risk of the COI, what the COI is, the facts known and the potential impact of the COI

Question 67

What must happen for a client to be able to give informed consent?

Answer 67

They must be fully aware of the situation including risks and alternative (transparency) Information given must be fair, accurate and appropriate to the degree of sophistication of the person signing Must be informed of the nature of the competing interest. If this is not possible due to confidentiality, cannot proceed with the new assignment Must be willing to enter RICS member must still reflect and use professional judgement on the correct thing to do, even if IC is given Should only proceed if you are satisfied all of client's/ parties interests will be served by you doing the work

Question 68

What is an Information Barrier?

Answer 68

Physical / electronic separation of individuals within the same firm that prevents confidential information passing between them Requires consideration of the position of ALL members of firms, not just RICS

Question 69

When is informed consent not enough?

Answer 69

Where the assignment is likely to be contentious Where it is not legal to act in the capacity Difficult to obtain informed consent in an Own Interest conflict

Question 70

What are own interest conflicts of interests?

Answer 70

Matters such as financial, personal relationships, appointments to public office, management appointments, commercial interests of employment interests

Question 71

Can you act to support competing bidders?

Answer 71

E.g. where clients are both bidding for the same asset Legally constitutes a COI but can be resolved by : - Obtaining Informed consent - Ensuring individuals are not responsible for or acting for more than one client - Putting in place an Information barrier Informed consent would not require them to provide the identity of each client

Question 72

Can firms pass confidential information to insurers and legal advisers?

Answer 72

There is uncertainty in English law Recommended by RICS that firms include a clause in terms of engagement regarding client's advanced consent to provide information to PII insures and legal advisers

Question 73

When must a firm be regulated by RICS and what are the benefits?

Answer 73

When it is providing surveying services in the UK and at least 50% of its principals are RICS members. Benefits include RICS regulation giving client's confidence in the standard of service they will be provided

Question 74

Do all practices have to be regulated?

Answer 74

No, only if they are carrying out surveying services in the UK and at least 50% of their principals are RICS members. Those with less than 50% of its principals as RICS members, but carrying out surveying services in the UK or elsewhere, can still apply for regulation.

Question 75

What information do RICS regulated firms have to submit on an annual basis?

Answer 75

* Surveying services provided by the firm - PII - turnover, cover, who * Complaints handling procedure and confirmation of firm's approved independent redress mechanism * Details of clients' money held - Principals bankruptcy / crime * Training of staff

Question 76

What conditions must a Responsible Principal comply with?

Answer 76

A - Head of Regulation is satisfied they are the appropriate person B - HoR is satisfied the person is able to take significant decisions and influence the strategy of the firm, or they are satisfied they report directly to someone who does C - RICS member or HoR is satisfied they are competent

Question 77

When might a firm be refused for registration?

Answer 77

- If they have been refused or deregistered within the last 12 months - They have been subject to a Disciplinary Panel decision and the application is within the period stated

Question 78

What examples of material changes must the RICS be notified of?

Answer 78

- Significant change in Principals - Significant change in members - Commencing or ceasing to hold client money - Breach of obligations Head of regulation to be notified within 7 days

Question 79

When can a firm NOT be de-registered?

Answer 79

- When >50% of principals are members - They are subject to investigation under Bye Law 5 - Conduct - Believed to be a breach of RoC - Fee's due have not been paid

Question 80

What are the RICS's requirements for run-off cover?

Answer 80

Run off cover: * Ensure that firms, members and their clients are not exposed to financial detriment in the period following a firm ceasing to trade * Minimum period Six years or 12 years - depends on contract signed as deed or under hand (limitation period) * £1m aggregate limit for consumer claims

Question 81

What is the mission statement of the RICS?

Answer 81

- To qualify and equip members to offer the highest standards of professional service - To promote and enforce standards - Lead solutions to the major challenges facing the build environment through professional expertise