ETHICS Flashcards

(131 cards)

1
Q
  1. What is the structure of RICS
A
  1. At the top is the Governing Council.
  2. The Governing structure splits 2 ways.
  3. RICS Board - Members and Services Committee, Audit and Finance committee, Knowledge and practice committee and Nomination and Renumerations Board.
  4. Standard and Regulation Board - Dispute resolution board, Qualification and Assessment Committee, CDP Framwork.
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2
Q
  1. How is the RICS Structured?
A

The RICS was founded in 1868 with the Royal Charter being granted by the Privy Council in1881.
* The RICS is self-regulated and internally monitored meaning that it is not regulated by the Government
or external parties.
* The Bye-Laws determine how the RICS is regulated.
* The Governing council manage and agree the strategy for the RICS.
* The Regulatory board, audit committee and management board are beneath the governing council and execute the strategy set by them.

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3
Q
  1. When was RICS founded.
A

1868

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4
Q
  1. What is the Mission Statement/ ROLE of the RICS?
A

To qualify and equip their members to offer the highest standards of professional service.

To promote and enforce standards

To lead solutions to the major challenges facing the built environment through professional expertise.

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5
Q
  1. Why do you want to be a member of the RICS?
A

Because it represents professionalism, integrity and consistency across the build environment. Achieving RICS membership is important to me as it demonstrates I met internationally recognised high standards. RICS place strong emphasis one ethics and acting in the public interest which aligns closely with how i approach my professional responsibilities

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6
Q
  1. Key functions of RICS
A
  1. Setting Standards
  2. Regulations
  3. Professional development
  4. Public Advantage
  5. Global Influence
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7
Q
  1. What is the difference between RICS ethics and rules?
A
  • Ethics are a set of moral values.
  • Rules of conduct are a framework that we work to.
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8
Q

What are the RICS’ 5 principles of better regulation?

A
  • Proportionality.
  • Accountability.
  • Consistency.
  • Targeting.
  • Transparency.
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9
Q

How many Global Professional and Ethical standards are there?

A

Up until the 1st February 2022 there were 5 Global Professional & Ethical Standards.
From the 2nd February 2022 onwards the Global Professional & Ethical Standards have been
consolidated within the New Rules of Conduct 2022.

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10
Q

What are the New Rules of Conduct?

A

Rule 1. Members and firms must be honest, act with integrity and comply with their professional
obligations, including obligations to RICS.
* Rule 2. Members and firms must maintain their professional competence and ensure that services are
provided by competent individuals who have the necessary expertise.
* Rule 3. Members and firms must provide good-quality and diligent service.
* Rule 4. Members and firms must treat others with respect and encourage diversity and inclusion.
* Rule 5. 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.

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11
Q

When did the rules of conduct change?

A

2nd FEB 2022

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12
Q

Who do the rules of conduct relate to?

A

Members and Firms

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13
Q

Why did the rules change?

A

Previous rules were since 2007
Majority of RICS members voted for change
Provided a single document for clarity
Greater focus on clearer behaviours, evolving tech and tackling climate change

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14
Q

What are the 6 ethical principles the rules are based on?

A

Honesty
Integrity
Competence
Service
Respect
Responsibility

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15
Q

Why does the RICS have Rules of Conduct

A

To provide a framework that we can all work to and so the client knows he is getting a set level of
service.
* As well as being an important tool for the Institution, the Rules of Conduct are also a useful
professional guide for individual institution members.

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16
Q

Give and example of each behaviour relating to the rules of conduct

A
  1. Member and Firms do not take unfair advantage of others.
  2. Members and Firms only undertake work they have knowledge, skills and resource to carry out competency.
  3. Members and frims communicate with clients and others clearly and in a way they understand.
  4. Members and firms do not bully, victimise or harass anyone.
  5. Members and firms respond to complaints made against them promptly, openly and professionally.
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17
Q

Who is the current RICS President?

A

Nick Maclean

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18
Q

What is the RICS moto?

A

Est Modus in Rebus’ which in Latin translates to ‘There is measure in all things’

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19
Q

What RICS initiatives do you know of?

A

PRME – Whereby the RICS is part of the UN backed Principles for Responsible Management Eduction.
New Arbitration Service Launched.
Lionheart.

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20
Q

Can you tell me more about the New Arbitration Service?

A

Brought in due to a decline in the use of Arbitration due its slowness.
Arbitrators are supervised to ensure they use the powers given to them under the Arbitration Act 1996 to robustly manage costs.
Will be faster and cheaper than courts.
Will be better than adjudication, as it will be more detailed when looking at an issue, resulting in judgements that are commercially sensible.

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21
Q

What issues do you know about that the RICS are looking into?

A

The uses of AI
Reasons for Planning Delays
Awaab’s Law: Implementing new regulations for social housing (and soon private rentals) to address hazards like damp, mould, and structural issues, with extensions planned for 2026 and 2027.

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22
Q

Who is the RICS President Elect?

A

Maureen Ehrenberg

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23
Q

What is Nick’s main focus areas?

A

Skills, Homes & Infrastructure, Sustainability & Resilience, and Data & Technology.

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24
Q

How many Countries and how many Members does the RICS operate in and have?

A

RICS has 140,000 members who operate out of 146 countries

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25
Where is the RICS Head Quarters?
London, UK, at 12 Great George Street, Parliament Square, Westminster, SW1P 3AD
26
How many professional groups are there?
18
27
Can you name some of the professional groups?
* Quantity Surveying and Construction. * Project Management. * Building Surveying. * Planning and Development * Commercial Property
28
What are the duties of these professional groups? who are RICS regulated
To provide best practice guidance. To set standards for professional competence. To provide training, CPD and network opportunities. Promote and Represent. To undertake research to improve the profession.
29
What are the three market sectors covered by the RICS?
Land , Property and Construction
30
What is the RICS Matrics?
a dedicated community within the Royal Institution of Chartered Surveyors (RICS) that supports students, trainees, apprentices, and newly qualified professionals with up to 10 years of experience. It acts as a networking and development platform offering CPD, mentoring, APC support, and social events
31
How many levels of RICS membership are there?
4
32
What are the four levels of RICS membership?
Student Associate. Member. Fellow
33
How do you become a fellow?
5 years post award MRICS. Managerial positions. Significant contribution to the profession.
34
What is the APC?
The Assessment of Professional Competence is a period of structured training followed by a Final Assessment Interview.
35
What different routes can you take to APC?
Structured Training (Traditional Route): Requires a RICS-accredited degree and involves 12 or 24 months of structured training, along with a final assessment. Preliminary Review: For candidates with relevant experience who may not have fully structured training, requiring a review of documents before the final assessment. (5 years experience) Senior Professional Assessment: Designed for candidates with 10+ years of experience (or 5+ with a postgraduate degree) and advanced responsibilities as a senior leader/manager.
36
What is the route for an associate member?
0 to 4 years experience. 2000 word summary of experience. 2000 word case study. 24 hours CPD. Completion of Online ethics course
37
How do you become an assessor?
Must be MRICS for three years, plus a 1 day training course.
38
What are the professional obligations of frIms of RICS?
1. Firms must publish a complaints-handling procedure, which includes an alternative dispute resolution provider approved by RICS, and maintain a complaints log. 2. Firms must ensure that all previous and current professional work is covered by adequate and appropriate professional indemnity cover that meets the standards approved by RICS. 3.Firms with a sole principal must make appropriate arrangements for their professional work to continue in the event of their incapacity, death, absence from or inability to work. 4.Firms must cooperate with RICS. 5. Firms must promptly provide all information reasonably requested by the Standards and Regulation Board, or those exercising delegated authority on its behalf. 6.Firms must display on their business literature, in accordance with RICS’ published policy on designations, a designation to denote that they are regulated by RICS. 7.Firms must report to RICS any matter that they are required to report under the Rules for the Registration of Firms.
39
What are the core professional obligations of members?
1. Members must comply with the CPD requirements set by the RICS which requires 20 hours of CPD for each calendar year, 10 hours of which must be formal CPD. 2. Members must cooperate with RICS. 3. Members must promptly provide all information reasonably requested by the Standards and Regulation Board, or those exercising delegated authority on its behalf.
40
What is a bye-law?
A regulation by a local authority or corporation
41
Example of a RICS bye-law
Contribution to funds. e.g determine annual subscription rates
42
What is the royal charter?
Awarded in 1881 by Queen Victoria, to maintain and promote the usefulness of the profession for the public advantage. Is an instrument of incorporation, granted by the monarch which confers independent legal personality on an organisation and define its objectives, constitution and powers to govern it owns affairs.
43
What is Lionheart?
A benevolent fund dedicated to providing support and financial aid to current and past members and their families.
44
CPD Requiremtns
Members must undertake and record appropriate lifelong learning. On request by the RICS they must provide evidence they have carried out the CPD. 20 hours of CPD must be achieved each calendar year, with a minimum of 10 formal hours. Members must undertake learning on the standards expected around RICS Ethics on a rolling 3 year period
45
Why is CPD important?
To maintain and improve their professional competence
46
What do you understand about the term self- regulation?
Independently regulating ones actions to conform with wider principles.
47
What is Professional Indemnity Insurance PII?
To provide financial cover in the event a client suffers financial loss as a result of a break of professional duty e.g. neglect, erros
48
Requirements for PII set by RICS?
- The policy cover must be made on an 'each and every' claim basis. - The RICS sets out the minimum level of indemnity. - The RICS set out the max level of uninsured excess. - Run - off cover must be in place for 6 years - The policy should include cover for past and present employees, directors and partners.
49
What is a PII aggregation clause?
Provision that allows insurers to treat multiple, separate claims as a single claim if they share a common fault
50
What does claim made mean in terms of PII?
The insurance policy that is in place at the time the breach is discovered is responsible for providing the indemnity, not the insurance policy in place when the breach was made.
51
Is PII excess usually paid per claim?
Yes
52
In a negligence claim, what would help to show that you acted with consideration and due process?
- Keep full and detailed records of meetings and conversation. - Record recommendation and advice given - Use proper letters of engagement, scope of services and terms of engagement. - Don't advise on a specialism outside of your experience. - Use RICS guidelines. - Avoid poor management and excessive workloads.
53
Limitation periods for PII
6 years if underwritten. 12 years if executed as a deed
54
Min levels of PII
FIRMS TURNOVER = £100K OR LESS = £250K FIRMS TURNOVER = £100K - £200K = £500K FIRSM TURNOVER = £200K + = £1M
55
MAXIMUM UNINSURED EXCESS
INDEMNITY UPTO £500K = THE GREATER OF 2.5% OF INSURED SUM OR £10,000 INDEMNITY OVER £500K = 2.5% OF INSURED SUM
56
Can record keeping help defence in a PII claim?
Yes
57
If you were providing services outside of your usual scope what would you do with PII Cover?
Ensure that you take out PII cover for the work out side of the scope. Get this clearly recorded in writing.
58
What is run off cover
Cover that protects the client if the firm ceases trading
59
RICS requirement for run off cover
6 years from the cessation of the practice
60
What changes did RICS recently make to the min approved PII wording?
In May 2021, it was updated to provide greater fire safety cover for chartered surveyors.
61
Explain PII requirements relating to fire safety cover and cyber cover.
Fire - coverage is mandated for professional services relating to fire safety on high rise buildings 5+ storeys. This expanded in July 2025 to internal fire stopping and compartmentation. Cyber - Cyber exclusion clause has now been removed by RICS listed insurers may still look to exclude this clause.
62
How long can a PII claim arise after the work has been undertaken?
6 years typically or can be 15 in certain circumstance
63
MERRIT VS BABB CASE LAW
Case dates back to 2001 and highlights the importance of having run-off cover in place. A surveyor was sued for negligence by a former client. Surveying firm was no longer in existence therefore the individual surveyor was pursued for damages successfully. Caused a big shock in the industry and highlighted the need to ensure that run-off cover is in place for all previous employees.
64
What is an assigned Risk Pool? (ARP)
A master facility that provides PII to all UK RICS regulated firms that are unable to obtain PII.
65
Explain your understanding of the RICS Guidance Note Risk, Liability and Insurance?
Intends to assist both RICS regulated firms and their clients to understand the main risks and liabilities associated with professional services e.g. liability caps, 3rd party reliance and PII amounts.
66
Explain when you might agree a liability cap
- When agreeing an appointment, this limits the amount a client can claim even if the law would otherwise award s greater sum of damages.
67
What are the three key terms that should be considered from a risk perspective in the context of every instruction you undertake?
o 1. The scope of the work. o 2. The fee o 3. The liability cap
68
What disciplinary measures can the rics impose?
- fixed penalty, consent order or disciplinary panel
69
What is a consent order?
A written instruction from the RICS to improve/implement corrective procedures for the party in question.
70
When can a disciplinary measure be imposed ?
When a complaint or a concern or information is raised about a regulated member
71
When did RICS last update the disciplinary panel rules?
2024 - ersion 3 of the RICS Regulatory Tribunal Rules and updated sanctions policy (fines/costs) were implemented
72
What do you understand about the term professional practice?
The conduct and work of someone from a particular profession
73
What money laundering regulations are you aware of?
1. The money laundering regualtion 2. Terrorist financing 3. Transfer of funds 2017
74
What is a red flag for money laundering ?
buying a home in cash
75
What bribery legislation are you aware of?
The Bribery Act 2010
76
What is a bride?
Offering money, goods or services to influence the actions, decisions or judgement of a person.
77
Penalties for accepting a bribe?
unlimited fine, 10 years in prison
78
Penalties for money laundering
unlimited fine, 14 years in prison
79
What is an offence under the Bribery Act?
A firm could commit an offensive if anyone associated with the firm offers, promises or fives a bribe for or on the firm behalf's.
80
What is an offence under the money laundering regs?
A person commits an offense if they enter int or becomes concerned in an arrangement which they know or suspects facilities the acquisition or control of criminal property.
81
How long should you keep an anti money laundering record for?
5 years
82
How would you set out third party reliance in terms of engagement?
Can be incorporated within the original terms of engagement for an instruction or could arise subsequently where members agree that a third party rely on their advice.
83
What are the three terms that should be considered from a risk perspective in the context of every instruction ?
1. Scope of Work 2. The fee 3, The liability cap
84
Main elements included in a fee proposal?
1. terms and conditions 2. scope of services 3. exclusions 4. assumptions
85
What is your understanding about the compliant handling procedures?
Provides standard for surveyors to handle complaints. Rics regulated firms must have this. Must be fit for purpose and understood by all RICS provides a model form Should be issued to client in terms of business complaints investigated in 2 stages: 1st stage - is when there needs to be a consideration of the complaint by a senior member of the firm or complaints handling officer. 2nd stage - compliant is referred to independent 3rd party. RICS becomes aware of compliant if reported to RICS.
86
What is the RICS guidance relating to bribery, corruption or money laundering?
Mandatory requirement for anti-bribery, corruption and money laundering and terrorist finance. Guidance setting out supporting good practice for anti bribery, corruption and money laundering. Supplementary guidance for the above. Key principles of this guidance are not to offer or accept, directly or indirectly anything that could constitute a bribe. Have adequate knowledge of bribery and corruption. Report any activity they are aware of that breaches the above.
87
What status does it hold > RICS guidance relating to bribery, corruption or money laundering?
RICS professional guidance
88
What are the current RICS rules for registration of firms?
Rules for the registration of firms 2022. A firm is required to register if: - The firm provides surveying services to the Public. - The firm is operating in the UK - At least 50% of the firms principals are RICS members.
89
What are the 6 Principles to mitigate a bribe?
Proportionate Procedures = Companies should have procedures to prevent bribes. Top Level Commitment = Senior Management committed to stopping bribes. Risk Assessments = Assess a companies risks to bribes. Due Diligence = Performing due diligence on individuals who will perform services on behalf of an organisation. Communication = Training employees on how to identify a bribe. Monitoring and Review = Reviewing and improving procedures.
90
What are your understanding about Compliant Handling Procedures (CHP)
Provides standard for surveyors to handle complaints and RICS regulated firms must have this and be fit for purpose and understood by all. - RICS provide a model form. - Should be issued to client in Terms of business. - Complaints investigated within 28 days. 2 stages: - Stage 1 - Is when there needs to be consideration of the compliant by a senior member of the firm or the complaints handling officer. - Stage 2 - Compliant is referred to independent 3rd party
91
Who is a qualified member of RICS
A member who has surveying related qualification and has passed the apc
92
Procedures to follow when starting a new firm
Contact the RICS for guidance and obtain a company start up pack. Inform the RICS and register for regulation. Appoint a contact officer for all RICS communication. Abide by the Rules of Conduct for Firms. Use the designation ‘Regulated by RICS’ on all practice material Prepare a complaints handling procedure. Obtain Professional indemnity insurance cover.
93
Insurance required for setting up new firm
Professional Indemnity Insurance. Employer’s Liability. Public Liability. Building’s insurance of an office premises.
94
Annual Returns required by RICS regulated Firms
Type of business and staffing. Nature of clients. Training provision. Complaints handling procedures details and records. PI insurance details. Whether the firm holds clients’ money.
95
What is the RICS moto
There is measure to all things - 'Est Modus in Rebus'
96
What is phoenix firm
When firms close in a disorderly way and rapidly re-establish themself as a new trading entity.
97
What are the rules on the RICS logo and regulated by RICS designation ? When did this rule change?
RICS logo may only be used by a member or a registered firm, unless otherwise authorised by RICS. The RICS Registered firms designation may only be used an RICS registered firm. 2022
98
Tell me about the restrictions to the use of designation 'chartered surveyors' by firms and sole practitioners.
Sole Practitioners - only to be used by a chartered member. Firms - - 50% of partners or directors are chartered members. - No partners or director has been expelled from RICS. - Term can only be used in the business trading name and not corporate name. - The firm is registered with RICS for regulation if it has principal office in the UK. - If principal office is not in the UK there is an agreement between the partners that any surveying services are carried out in line with the rules of conduct. - Each partner or director uses the appropriate designatory initials
99
What must be included in T of E relating to firms regulation?
Must display the 'regulated by RICS' designation clearly visible to both potential and existing clients of a firm
100
What is a locum and who might need one?
A locum is another professional who is appointed to stand in for the surveyor if they are unable to work. Sole practitioners would require this, would be secured by a locum agreement.
101
What is RICS guidance relating to handling client money
Client Money Handling, Jan 2022
102
What do you know about the RICS code of conduct say about handling client money (Rule 1)? What are the main schemes available to firms?
Firms keep client money safe and have appropriate accounting controls. Members do not misuse client money and comply with controls intended to keep it safe. RICS Client money protection scheme
103
RICS Client money protection scheme - what is the current compensation limit?
£50k
104
What might client money include?
Rents, service charge, money to pay contractors
105
What are some of the Key principals of the RICS professional standard relating to client money protection?
- Hold all client money in a client money account. - Not hold office money in the client money account. -Ensure the money is immediate available - Ensure that all client money accounts include the word client and the name of the firm in the title account.
106
What do RICS set out as good practice for the use of social media in their regulation doc (June 21?)
To use the same standard as you would face to face.
107
What is whistle blowing?
Reporting wrong doing
108
How do you ensure you comply with your firms bribery and gift policy?
If i receive a gift or offered hospitality I will discuss with my HR department and review the internal policy. I ensure i am open and transparent with both my employer and client.
109
Tell me about what you would do if you felt that an instruction was outside your scope of works
I would inform the client that i was unable to complete this piece of work and would point them in the direction of someone within the firm who could assist.
110
What is the RICS Regulatory Board?
RICS Regulation is administered by the RICS Regulatory Board,. Chaired by a non-member of RICS to demonstrate that our regulation of members is independent and at arm’s length from the interest of our members. The Regulatory Board meets regularly to decide policy on regulatory matters and oversee implementation of the regime. It is responsible to RICS Governing Council for its decisions. The Assigned Risk Pool and the Conduct and Appeals Committee also help in regulating the profession.
111
What measures are in place for the RICS to protect client’s money?
Clients’ Money Protection Scheme. This is a free service provided to clients of RICS-regulated firms. Is an insurance policy to cover client’s direct loss of funds due to a firm regulated by the RICS. All regulated firms who hold clients’ money pay a regulatory review fee on an annual basis.
112
When can a conflict of interest occur? examples
Acting for another person with competing interests at the same time, for example acting for the buyer and the seller of a property. You have obligations or pressures that detract or affect your relationship with the client, for example acting as an expert witness where you or your firm has an interest in the outcome of proceedings. You are faced with conflicting duties owed to different clients, for example acting for 2 or more parties competing for an opportunity.
113
What is a conflict of interest?
A conflict of interest is anything that impedes or might be perceived to impede an individuals or firms ability to act impartially and in the best interest of the client. Ex. - Client’s relation at contractor tendering for the works, still wants to award contract to them. Liaise with the client’s legal advisor and report this issue to my superior.
114
What is the RICS’s role today?
RICS has 3 main roles: * To maintain the highest standards of education and training * To protect consumers through strict regulation and professional standards * To be the leading source of information and independent advice on land, property, construction and associated environmental issues.
115
What are the 6 Principles to mitigate a bribe?
Proportionate Procedures = Companies should have procedures to prevent bribes. Top Level Commitment = Senior Management committed to stopping bribes. Risk Assessments = Assess a companies risks to bribes. Due Diligence = Performing due diligence on individuals who will perform services on behalf of an organisation. Communication = Training employees on how to identify a bribe. Monitoring and Review = Reviewing and improving procedures.
116
What Regulation covers money laundering within the UK?
The UK Money Laundering Regulation 2007.
117
What would you do if a consultant offered to take you to a hospitality event?
I would decline, as because I have been targeted directly, it could be seen as trying to impair my judgement. If the gift was directed at the company as a whole, I would secondly consider the timing, i.e. will I be awarding any sub-contracts soon, which this could be seen as influencing. Finally, I would consider the proportionality of the gift, i.e. is it proportional to our business relationship. I would also record any gifts I receive within the business register
118
What is a Consent order?
A written instruction from the RICS to improve/implement corrective procedures for the party in question.
119
What is the ‘Red Book’?
Mandatory rules and Practice guidance for Valuation Surveyors.
120
What is an independent redress scheme
- It is a consumer scheme designed to handle small issues that would be disproportionally expensive to take to court. If the scheme judges in favour of the complaint it is binding. If it judges in favour of the firm the complaint can escalate the matter to the court. -
121
What would you do if you received a complaint?
I would acknowledge receipt and i would forward it to my firms complaint handler, as per our complaint handling procedure, providing additional information if required.
122
Name rule 1 and example
Firms must be honest, act with integrity and comply with their professional obligations, including their obligation to RICS. Example - Informing the client of a mistake in an appraisal that has been issued. Amending the mistake and reissuing the appraisal with the correct information.
123
Name Rule 2 and example
Members and firms must maintain their professional competence and ensure that services are provided by competent individuals who have the necessary expertise. Example - I complete CPD training to keep my knowledge up to date, if asked to complete work outside of my area of expertise. I refer this to my technical colleagues e.g. queries on overheating
124
Name Rule 3 and example
Members and firms must provide good-quality and diligent service. Example - Refer to DBP and when i had to run all the different examples of reducing heights and increasing heights of the blocks that the client was well informed of my modelling and understood the impact of the different options.
125
Rule 4 and example
Members and firms must treat others with respect and encourage diversity and inclusion. Example - I am polite and treat all colleagues and clients with respect
126
Rule 5 and example
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 - Ensuring a planning application accurately reflects site constraints, advising the client of risks, and correcting or withdrawing from an instruction to prevent misleading the LPA demonstrates compliance with Rule 5.
127
What is a bye-law?
They form the fundamental governing documents for the institution, outlining its constitution, governance structure, members obligations and procedural laws. Essential for maintaining the integrity, standards and effective operation of RICS.
128
What is self-regulation?
RICS = one of a number of professions operating a self-regulation model = RICS members are not regulated by government but are internally monitored and inspected RICS self-established standards of regulation meet, and in some cases surpass, the government’s own principles on better regulation
129
What are the individual laws passed by RICS to self regulate its firms?
Codes of Conduct for Firms and Members Defines its own Definitions of phrases i.e. ‘Firm’ The method for electing members Calculating fees, subscriptions That there should be President and V.President
130
What are some RICS Bye-Laws?
Bye-Law 1; Applications and Definitions Bye-Law 2; Membership and Registration Bye-Law 3; Designations Bye-Law 4; Contributions to Funds Bye-Law 5; Conduct
131
What is a liability cap
a contractual clause that sets a maximum limit on the amount of damages one party has to pay another for losses, negligence, or breach of contract