Ethics

Question 1

• What are the RICS Rules of Conduct and can you provide examples?

Answer 1

Members and Firms must:
– be honest and act with integrity E.G. Conflicts of interest

• maintain their professional competency. E.G. Relevant skills
• provide good-quality and diligent service. E.G. Quality Assurance
• treat others with respect and encourage diversity and inclusion. E.G. Work cooperatively
• act in the public interest and maintain public confidence in their profession. E.G. Complaints Handling Procedure

Question 2

• What is contained within Appendix A of the RICS Rules of Conduct?

Answer 2

Appendix A is the section regarding Professional Obligations.

Obligations for firms:
o Publishing Complaints Handling Procedure and Alternate Dispute Resolution
o Have PII cover
o Denote that they are RICS regulated
o If having a sole principal - ensure arrangements for work to continue in event of incapacity

Obligations for members:
o Co-operate with RICS
o Meet CPD standards

Question 3

• How do you act to a high professional and ethical standard?

Answer 3

I do this by adhering to the RICS Codes of Conduct.

Professional – Ensuring professional competence (ensuring have relevant skills for a job) and providing a diligent service (by undertaking quality assurance)

Ethical – Maintaining honesty and integrity (by prohibiting and managing conflicts of interest and maintaining confidentiality)

Question 4

• What does a fully regulated firm mean?

Answer 4

A company that is registered with RICS and must comply with the regulation of the RICS.
These companies can be an LLP, large corporate body, or a sole practitioner.

The requirements include:
o Undertake annual return showing compliance
o Have a Responsible Principal – who is responsible for compliance
o Use the RICS logo correctly
o Include RICS within Terms of Engagement

Question 5

• What is contained within an Annual Return?

Answer 5

o Type of business and staff details
o Name of Responsible Principal
o Statutory Regulated Activities – such as financial services
o Nature of Clients
o CHP and records
o PII details
o Whether clients’ money is held

Question 6

• What companies can apply to be an RICS registered firm?

Answer 6

o If 50% of Principals are RICS registered = must be registered
o If 25% plus of Principals are registered = can apply
o Principles are directors or board members

Question 7

• What is your employer’s Code of Business Conduct?

Answer 7

SW have Codes related to:
o ESG and Sustainability
o Data Protection
o Bribery – gifts policy

Question 8

• What is your employers gift policy?

Answer 8

SW are required to have measures in place to prevent bribery.

Some gifts are appropriate:
o Not made with intention of influencing
o Only accepted with approval of Nominated Officer
o Does not include cash or vouchers

Anything over £25 should be declared and put on the gift register.

Question 9

• What do you know about the Bribery Act 2010?

Answer 9

Created to reduce bribery in businesses in UK and abroad.

A bribe is something given or promised in exchange for something that is illegal or a breach in trust.

Companies are responsible and must demonstrate steps taken to prevent bribery.

4 Offences to the Act:
o Bribing
o Receiving a Bribe
o Bribing a foreign public official and:
o Failing to prevent bribery

Penalty – Serious Fraud Office with maximum penalty of 10-year imprisonment or unlimited fine for individuals and company

Question 10

• What do you know about the RICS Countering Bribery and Corruption, Money Laundering and Terrorist Financing professional statement (1st edition, 2019)?

Answer 10

It’s a professional statement by the RICS.

Mandatory Requirements include:
o Must not accept or offer anything constituting a bribe
o Must report any breaches
o Report suspicions to relevant authorities
o Not facilitate money laundering
o Firms must have systems to prevent

Further to this, companies are encouraged to have a gift register and risk assessments and provide training to employees.

Question 11

• What is the Bichard Review?

Answer 11

Following the review by Alison Levitt, Bichard Review commissioned to review:
o Clarify purpose of RICS
o Make recommendations to governing structure
o Provide proposals for incoming leadership and future culture and strategy

Report made recommendations:
o Increased focus on the public interest, including creating a public panel
o Greater leadership on issues inc climate change and diversity and inclusion
o Increased member engagement and empowerment
o Simplify governance structure

Following the review, there is a willingness to deliver a more public focussed operation

Question 12

• When did you complete the professionalism test?

Answer 12

25th February 2023

Question 13

• Can you provide an example of when you have maintained professional competency?

Answer 13

• When submitting quotes for undertaking a job, I ensure that myself and my supervisor have the required skill level and competence to undertake the job. E.G. within my case study

Question 14

• Can you provide an example of when you have acted in the best interest of the public?

Answer 14

Commercial Portfolio Valuation – Midlands

• Did not accept what I perceived to be a bribe when offered £20 towards going for lunch
• Offered when concluding the inspection of a portfolio and was seen as a gesture by the bank’s customer to influence me. During the process and not once the job was concluded.
• The SW gifts policy prohibits taking hospitality in the form of cash or vouchers
• In line with the Bribery Act 2010 which makes it a legal requirement to not accept anything constituting a bribe
• Also RICS legislation surrounding this topic
• My ultimate duty of care is to the public
• Improve the reputation of surveyors

Question 15

• What is the RICS Decision Tree and how would you use it?

Answer 15

A framework for members to reach a conclusion when facing an ethical matter.

Fundamentally asks whether:
- You have sufficient FACTS for the situation
- Is it LEGAL
- Is it inline with RICS ethical standards
- Have you CONSULTED with others
- Do you have REASONING to accept
- Is it ethical in the eyes of the MEDIA

F L R C R M

Question 16

• When have you provided a diligent service?

Answer 16

When working on a Valuation report, we have a system in place called Blue Ink. This system requires the report to be dual signed.

One by the surveyor undertaking the instruction, and another by a second surveyor who has read, and quality assured the report.

The Blue Ink system then locks the PDF report document to prevent editing by third parties. This provides a diligent service.

Question 17

• What are the benefits of being an RICS member?

Answer 17

The benefits include:
o Status
o Recognition
o Market advantage – opens for wider work
o Knowledge
o Network

Question 18

• When is it acceptable to accept such a gift/offer?

Answer 18

There are some acceptances with hospitality:
- When in line with the Bribery Act 2010 and RICS legislation
- Not taken with the intention of influencing
- Complies with local law
- Given by a company and not an individual
- Approved by the SW Nominated Officer

Question 19

• Why can you not disclose offers in an informal tender?

Answer 19

As an agent you are bound to confidentiality because of Data Protection and the Act.

Therefore personal information should be protected.

Giving an indication of offers in best and finals is unethical and against the terms of informal tender.

The requirements of Best and Final offers state that you should open bids in front of the client or a witness.

Question 20

• What do Terms of Engagement contain?

Answer 20

• In accordance with Red Book
• Disclosure and Liability – report strictly for who it is addressed to
• Inspection - valuer undertaking inspection
• Condition and repair – limitations of the inspection
• Statutory matters – Equality Act, Fire Safety, Asbestos
• Tenure – Tenancies (information relied upon)
• Bases of Value
• Terms and Conditions – definitions

Question 21

• What is Professional Indemnity Insurance?

Answer 21

• Mandatory
• Protect clients, surveyors and third parties from negligence
• Must have adequate level of cover for each instruction
• SW Cover £20M
• Current cover covers any historic claims, rather than the insurer at the time of the offence
• Run-off cover required for at least 6-years. Min £1M but assess your own level.
• PII cover needed for unpaid work
• RICS services in place for members facing claims who:
• Are in administration
• Can’t arrange cover

Question 22

• What is Negligence?

Answer 22

• When there is a loss or claim for damages

Question 23

Why do you want to become an RICS member?

Answer 23

• Something I have been working towards for a few years now
• Been to university and committed to an RICS accredited Real Estate degree
• Want to join an institution to be part of a body with a strong reputation, history and global reach

Question 24

What is the role of the RICS?

Answer 24

• Enforces best practice
• Policy and poticial influence

Question 25

What do you know about the Limitation Act 1980?

Answer 25

- Negligence limitation 6 years

Question 26

What are the 6 principles to the Bribery Act?

Answer 26

- Proportionality - Top Level Commitment - Risk assessment - Due diligence - Communication - Monitoring and Review