What is Rule 1 and can you provide any example behaviours?
Members and firms must be honest, act with integrity and comply with their professional obligations, including obligations to RICS.
Example behaviours include;
- Not to be influenced improperly by others.
- Open and transparent with clients about fees and services
- Keep client money safe
- Provide advice in a professional context, transparently and based on reliable evidence.
What is Rule 2 and can you provide any example behaviours?
Members and firms must maintain their professional competence and ensure that services are provided by competent individuals who have the necessary expertise.
Example behaviours include:
- Only undertake work that they have knowledge, skills and resources to carry out competently.
- Maintain and develop their knowledge and skills throughout their careers.
- Stay up to date with relevant legislation, codes of practice and standards.
What is Rule 3 and can you provide some example behaviours?
Members and firms must provide good quality and diligent service.
Example behaviours:
- Understand clients needs and objectives
- Agree the scope of service, limitations and timescales
- All data used is accurate and up to date, kept securely and the firm have a legal right to use and store it.
What is Rule 4 and can you provide some example behaviours?
Members and firms must treat others with respect and encourage diversity and inclusion.
Example behaviours:
- Respect the rights of others and treat others with courtesy
- Firms check that supply chains do not involve modern slavery
- Develop an inclusive culture, support equal access, identify and address unconscious bias
What is Rule 5 and can you give some example behaviours?
Members and firms must act in the public interest, take responsibility for their actions and act to prevent harm and maintain public confidence in the profession.
Example behaviours:
- Respond to complaints promptly, openly and professionally
- Questions practices and decisions that are not right
- Manage professional finances responsibly
- Co-operate with investigations
What are the professional obligations of members?
- Comply with CPD requirements
- Cooperate with RICS
- Promptly supply all information to the Standards and Regulation Board
What are the professional obligations of firms?
- Complaints handling procedure
- Professional indemnity insurance
- Sole practitioner must make arrangements for their incapacity
- Cooperate with RICS
- Provide information to Standards and Regulation Board
- Designation to denote they are regulated by RICS
- Report to RICS anything reported under Rules for the Registration of Firms
What is the mission statement of the RICS?
- offer highest standards of professional service
- promote and enforce standards
- solutions to major challenges facing built environment
How is the RICS structured?
- self-regulated and internally monitored
- bye-laws determine regulation
Governing Council - manage and agree strategy
Audit Committee, Regulatory/Management Board - execute strategy
What are the RICS’ 5 principles of better regulation?
- Proportionality
- Accountability
- Consistency
- Targeting
- Transparency
What is the difference between RICS ethics and rules?
- Ethics are a set of moral values
- Rules of conduct are a framework that we work to
In the case of a breach of a rule of conduct, what is the procedure?
- Not every shortcoming will necessarily give rise to proceedings
- First step - formal investigation by the Head of Regulation of the RICS
- RICS can request information/ inspect
- Members must cooperate with enquiries
How can a disciplinary proceeding be triggered?
- Someone complaining to the RICS
- An allegation by client or third party
- Information received or established by RICS
What three actions can be imposed after the end of the investigation?
- Fixed penalty - a fine by RICS
- Consent order - written agreement between RICS and member/firm concerning disciplinary issue. Can require member to take corrective actions.
- Disciplinary panel
When is a disciplinary panel applicable?
- Used for more serious breaches of conduct
- Panel usually held in public
- Burden of proof is on the RICS
- Balance of probabilities approach adopted
What sort of breaches would expulsion be suitable for?
- Gross, persistent or wilful failure to comply with a code of conduct
- Fraud, dishonesty, conviction of a serious criminal offence, gross incompetence, deliberate discrimination, misappropriation of client’s money.
What procedures must you follow if you are staring up a new practice?
- Obtain start up pack
- Inform RICS and register for regulation
- Appoint a contact officer
- Complaints handling procedure
- Professional indemnity insurance
- Abide by Rules of Conduct for Firms
- Use designation on all practice material
What insurances would you need to start up your own practice?
- PII
- Employer’s liability
- Public liability
- Building’s insurance for office premises
What information do registered firms need to send to RICS annually?
Annual return - carried out online
- Type of business/staffing
- Nature of clients
- Training provision
- Complaints Handling Procedure
- PII details
- Whether the firm holds client’s money
What processes do regulated firms need to put into place when handling client’s money?
Preserve the security of client’s money
RICS regulated firms that operate a client account must:
- Account must not be overdrawn
- Agree terms and advise client on bank details
- Principle to oversee accounting functions
- Competent and knowledgable staff to process money
What is meant by the term negligence?
Negligence is a failure to provide the duty of care that is owed to the client
What do you know about the Merrit V Babb case?
- 2001
- Importance of run-off cover
- A surveyor was sued for negligence by a former client
- Surveying firm had been wound down so surveyor was personally pursued for damages
- Highlights need to ensure run-off cover in place for all previous employees
What must a complaints handling procedure include?
RICS provides a model form
- must include redress scheme
- must be free of charge within first stage
- records kept of complaints, progress and outcomes
- clear, transparent and impartial
What is an independent redress scheme?
RICS firms must specify scheme - ombudsman, arbitration or adjudication
- Consumer scheme designed to handle small issues that would be disproportionately expensive to take to court
- If scheme judges in favour of complainant it is binding
- If in favour of firm it can progress to court
