What are the RICS code of conduct?
- Members and firms must be honest, act with integrity and comply with their
professional obligations, including obligations to RICS.
2.Members and firms must maintain their professional competence and ensure
that services are provided by competent individuals who have the necessary
expertise.
- Members and firms must provide good-quality and diligent service
- Members and firms must treat others with respect and encourage diversity and
inclusion. - 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.
What are mandatory professional obligations for members?
RICS members:
- Comply with the CPD requirements set by RICS.
- Cooperate with RICS
- Promptly provide all information reasonably requested by RICS Regulation Board.
What are mandatory professional obligations for firms?
- Publish a complaints handling procedure which includes an ADR provider approved by RICS.
- Ensure all previous and current professional work is covered PII inline with RICS standards
- cooperate with RICS
- If sole practitioner, ensure all work can continue in the event of your death.
- Promptly provide all information reasonably requested by RICS Regulation Board.
What is the RICS Ethical Decision tree?
Tool to aid member when dealing with ethical situations:
- Do you have sufficient facts on
the issue? - Is it legal?
- Is it in line with RICS Rules of Conduct?
- Have you consulted with appropriate people to make an informed decision?
- Do you have clear reasoning in
reaching your decision? - Is your decision informed?
- Would you be content with your actions if they were made public.
Disciplinary action is set out in what guidance?
RICS Regulatory Tribunal Rules (effective 2024)
What the 3 levels of disciplinary action?
- action by Head of regulation
- regulatory tribunal
- Appeal Panel
The Head of Regulation can initiate one of 4 actions what are they?
- serve a fixed penalty notice
- Make a regulatory compliance order
- refer matter to regulatory tribunal
- refer matter to disciplinary panel
The5 actions available to the regulatory tribunal panel are:
- issue a regulatory compliance order
- issue a fine
- impose condition on future RICS registration
- expulsion
- Require publication of results.
What type pf RICS Guidance is mandatory and which are voluntary and good practice?
Mandartory
- international standard
- Professional Statements
- practice statements
Voluntary
- guidance note
- codes of practice (mandatory or codes of practice)
What are the RICS views on fees
- firms should avoid price fixing, aggressive fee cutting and collusion with competitors.
- fees should be market based and agreed on an ad-hoc basis
- the acceptance of referral fees should be considered in the context of the Bribery Act 2010 and Rules of Conduct.
When can an instruction be declined?
- when i am not competent
- when a conflict exists
- when client does not sign terms of engagement
- When PII cap cannot be agreed.
What are the 3 types of conflict?
- party conflict - representing both parties on the same instruction.
- own interest conflict - personal interest
- confidential information conflict - work between two parties that is confidential.
What are the 4 rules around CPD?
- 20 HOURS
- at least 10 hours formal
- CPD must be recorded
- All members must stay up to date with RICS codes of conduct on a 3 year rolling period.
What is the purpose of PII
Professional Indemnity Insurance
- mandatory for surveyors
- to protect clients, surveyors and third parties against negligence claims.
- Details set out in Professional Indemnity Insurance Requirements Version 7.
What is your firms PII cover and what are the thresholds?
1 million pounds
Thresholds:
100k or less turnover - £250k PII
£100,0001- £200k - £500k PII
£200,001K and above - 1 million PII
all turnover for preceding year.
How much run off cover does a firm need?
minimum of 6 years.
What is the RICS guidance for handling clients money? and what does it advise
RICS Professional Standard: Client Money Handling 2019.
- client money must be kept in separate accounts and be indentifiable.
- the client must be able to access their money on demand.
- payments of interest must be agreed with client.
- firm handling client money must display their procedures on their website.
What would you do if you started your own practice?
-Ensure RICS Compliance:
- Inform RICS of new practice completing Firm Detail form.
- register with RICS.
- Obtain a RICS Approved complaints .
handling procedure - arrange and set up PII insurance
- set up procedures for handling client money including protection schemes.
- Appoint complaints handling officer.
- ensure CPD is logged online
- complete RICS annual return at the end of each year.
Ensure Statutory Compliance:
- disclose business name
- disability discrimination act
- financial services compliance
- Bribery Act 2010
- Appoint money laundering offices
- Health and Safety compliance.
- data protection Act 2018
- inform HMRC for VAT and Tax registration.
- insurance compliance and PII
What steps would you take to close a practice?
- inform RICS
- inform clients as soon as possible and carry out handover arrangements to new firm.
- return all client money
- inform insurance and obtain 6 years run off cover.
- retain copies of client files for minimum of 6 years.
What is the key legislation around bribery?
Bribery Act 2010
What are the 6 principles of the Bribery Act 2010
- proportionality
- top level commitment
- risk assessment
- due diligence
- communication
- monitoring and review
What are the 4 bribery offences?
- Giving a bribe
- receiving a bribe
- failing to prevent bribery
- bribing a foreign official
Who polices the Anti-Bribery Act?
Serious Fraud Office
What are the penalties of breaching the anti-bribery act
- maximum of 10 years in prison
- unlimited fine for individuals and firms.
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