Ethics

Question 1

How many Rules of Conduct are there ?

Answer 1

There are 5 Rules of Conduct, effective from Feb 2022.

The rules of conduct apply to ALL members and firms regulated by the RICS

Question 2

What do you need to do when setting up a practise ?

Answer 2

• Inform the RICS
• Register for regulation
• Professional Indemnity Insurance
• Complaints Handling Procedure
• Clients Money Handling Procedure
• Healthy and Safety Policy
• Appoint a ‘responsible principle’

Question 3

What are the 5 Rules of Conduct ?

Answer 3

1. Members and Firms must be honest, act with integrity and comply with professional obligations, including obligations to RICS
2. Members and firms must maintain their professional competence and ensure that services are provided by competent individuals with the necessary expertise.
3. Members and firms must provide good-quality and diligent service
4. Members and firms must treat each other with respect and promote diversity and inclusion.
5. Members and firms must act in the public interest and take responsibility for their actions and act to prevent harm and maintain public confidence in profession

Question 4

Shorter Rules of Conduct

Answer 4

1. Honesty and Integrity
2. Professional Competence
3. Good Quality and Diligent Service
4. Respect and D&I
5. Act in Public interest and prevent harm

Question 5

What are the Professional Obligations for MEMBERS and where can they be found ?

Answer 5

Appendix A of Rules of Conduct.

3 for members

Members:
- Comply with CPD requirements
- Cooperate with RICS
- Provide all information requested by the Standards and Regulations Board

Question 6

What are the Professional Obligations for FIRMS and where can they be found ?

Answer 6

Appendix A - Rules of Conduct

7 for firms

• Publish complaints handling procedure, have ADR approved by RICS and a complaints log
• Have adequate professional indemnity
• Sole principles have appropriate arrangements for professional work to continue in case of illness, death, absence
• Cooperate with RICS
• Provide requested information to Standards & Regulations Board
• Must display regulated by RICS
• Report matters to RICS under Rules for the Registration of Firms

Question 7

RICS Regulation on use of Social Media ?

Answer 7

Use of social media - Guidance for RICS members - Sept 2024

Question 9

What is the Black Book ?

Answer 9

A collection of technical practice documents which cover all process throughout a construction project life cycle

Question 10

What are the two new definitions for professional Guidance

Answer 10

Professional Standards and Practice Information

Question 11

What is a “Professional Standard” document and what might it contain ?

Answer 11

Set requirements or expectations about how they should provide services or the outcomes of their actions.

-Mandatory requirements to be followed
- Best practises to be followed
- Alternative approaches if not mandatory

Question 12

What are Practice Information documenta and what do they contain ?

Answer 12

Supplementary guidance to support when delivering specific services or areas of practice.

Not mandatory and provides some recommendations
- Definition, processes, research, advice and technical information.

Question 13

What is the difference between ethics and integrity

Answer 13

Integrity - being honest, moral principles and personal code

Ethics - organisations rules, regulations and conduct

Question 14

RICS tool to make ethical decisions

Answer 14

RICS Ethics decision Tree

Question 15

Things to consider when accepting gift or hospitality from client ?

Answer 15

• Timing of gift/hospitality
• The value of the gift
• Proportionality of gift/hospitality
• Consideration to the impartiality
• Is ot inline with RICS Rules or Conduct

Question 16

What is the relevant document for Conflict of Interest ?

Answer 16

Professional Standard - Conflict of Interest, March 2017

Question 17

What is a Conflict of Interest

Answer 17

A situation where there may be an actual, percieved or potential riak that the professional judgement of and RICS regulated firm or member will be compromised when undertaking an assessment

Question 18

What are the 3 types of conflict

Answer 18

Party, Own Interest and Confidential Information.

Party - acts in interest of one party when you have been assigned by two clients

Own Interest -

Confidential - Providing information meant to be confidential

Question 19

What levels of Professional Indemnity Insurance do you need ?

Answer 19

Turnover of previous year:
1. £100k or less - £250k
2. 101k to 200k - £500k
3. 201k or more - £1m

• Needs to be underwritten by a listed insurance
• Needs to have run off cover for a minimum of 6 years

Question 20

What is a bribe ?

Answer 20

An inducement or reward given to a person as an incentive for them to do something

Question 21

What is the RICS Guidance note on bribery ?

Answer 21

Countering financial crime, bribery, corruption, money laundering, terrorist financing and various sanctions

Question 22

What does the Bribery Act 2010 cover ?

Answer 22

• Being offered a bribe
• Bribing others
• Bribing a public foreign official
• Failure of a commercial organisation to prevent bribery

Question 23

What are the 6 principles of bribery ?

Answer 23

1. Proportionality - What is the risk & impact
2. Top Level Commitment - Senior Management influence
3. Due Diligence -
4. Risk Assessments
5. Communication - Training and policies in place
6. Monitoring and reviewing processes - to ensure it does not take place