What is the role of RICS and its public interest remit?
RICS is the professional body that sets, maintains and enforces standards for land, property and construction professionals. Its primary role is to ensure that chartered surveyors act with integrity, competence, objectivity and independence.
Its public interest remit means RICS exists to protect the public and the wider market, not its members. It does this by regulating entry to the profession, requiring ongoing competence through CPD, investigating misconduct, and issuing sanctions where standards are breached. RICS also produces globally recognised technical standards, such as the Red Book, which promote consistency and confidence in valuations and professional advice.
What are the key functions of RICS?
Regulation of the profession
Setting and maintaining professional standards
Upholding ethics and professionalism
Education and qualification
Protecting the public and consumers
Guidance, research and thought leadership
What is a Royal Charter?
A Royal Charter is a formal legal document granted by the monarch, on the advice of the Privy Council, which creates or recognises a body corporate and sets out its purpose, powers and constitution.
Who is the current RICS president?
A Royal Charter is a formal legal document granted by the monarch, on the advice of the Privy Council, which creates or recognises a body corporate and sets out its purpose, powers and constitution.
What do you understand by the term self-regulation?
As opposed to state regulation, the RICS regulates itself, within the confines of the law it sets its own guidance, standards and can enforce them.
Can you tell me what you understand by the principles of better regulation?
- Proportionality
- Accountability
- Consistency
- Transparency
- Targeting
What is a Bye-Law?
The RICS Bye‑laws are the constitutional rules that govern how RICS operates as an organisation and how it regulates its members.
Give an example of one of the RICS Bye-Laws.
Bye‑Law 1 – Application and definitions
Bye‑Law 2 – Membership and registration
Bye‑Law 3 – Designations
Bye‑Law 4 – Contributions to funds
Bye‑Law 5 – Conduct
Bye‑Law 6 – Firms, regulated non‑members and registration
Bye‑Law 7 – Investigation, discipline and sanctions
Bye‑Law 8 – Meetings of members
Bye‑Law 9 – Accounts and audit
Bye‑Law 10 – General and supplemental provisions
Explain to me the new RICS Rules of Conduct - what do they replace?
1) Honesty, integrity and professional obligations
2) Maintaining professional competence
3) Providing good quality and diligent service
4) Treating others with respect and encouraging diversity and inclusion
5) Acting in the public interest and taking responsibility
The new Rules replace three separate documents that previously governed conduct:
* Rules of Conduct for Members
* Rules of Conduct for Firms
* Global Professional and Ethical Standards
When do they take effect?
Came in to Force 2 Feb 2022
Who do they relate to?
- RICS members (AssocRICS, MRICS, FRICS)
- RICS candidates and students (including APC candidates)
- RICS regulated firms
- Individuals acting on behalf of RICS regulated firms
What are the ethical principles that the Rules of Conduct are based on?
RICS has a statement of Global Professional and Ethical Principles, which has been in place since 2009
the ethical principles are now incorporated into the Rules of Conduct as the basis for the individual rules.
RICS remains a member of the IES coalition and the new Rules implement all the IES
principles.
What are the 5 Rules?
1) Honesty, integrity and professional obligations
2) Maintaining professional competence
3) Providing good quality and diligent service
4) Treating others with respect and encouraging diversity and inclusion
5) Acting in the public interest and taking responsibility
What disciplinary procedures can the RICS impose?
RICS can impose the following:
* Caution or reprimand
A formal warning recorded against the member or firm.
- Fines
Financial penalties of an amount considered proportionate to the misconduct. - Conditions on membership or registration
For example, requirements to undertake training, supervision, or specific remedial actions. - Regulatory Compliance Orders (Consent Orders)
Agreed outcomes that may include fines, conditions or corrective steps, avoiding a full hearing where appropriate. - Suspension
Temporary removal of membership or firm registration for a specified period. - Expulsion or removal from the Register of Regulated Firms
The most serious sanction, permanently removing membership or firm regulation.
In what circumstances can these be imposed?
Where a member or firm has breached the rules of conduct.
Failure to comply with regulatory obligations.
Brining the profession in to disrepute.
When did RICS last update their disciplinary panel rules?
- Effective date: 14 March 2024
- Document: RICS Regulatory Tribunal Rules – Version 3
What are the different levels of action within these procedures?
- Action by the Head of Regulation
- Single Member of the Regulatory Tribunal
- Disciplinary Panel of the Regulatory Tribunal
- Appeal Panel
What do you understand by the term professional practice?
- technical competence,
- ethical behaviour, and
- compliance with RICS standards, guidance and the Rules of Conduct,
while acting in the public interest.
What money laundering regulations or legislation are you aware of?
Proceeds of Crime Act 2002 (POCA)
Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017
Terrorism Act 2000
What is a red flag of money laundering?
Unusual or unexplained source of funds
Reluctance or refusal to provide information
Transactions that do not make commercial sense
Complex or opaque ownership structures
What bribery legislation are you aware of?
- Bribery Act 2010
- Guidance under the Bribery Act 2010 (The Ministry of Justice has issued statutory guidance to help organisations understand what counts as “adequate procedures” to prevent bribery.)
What is a bribe?
A bribe is any financial or other advantage that is offered, promised, given, requested, or accepted with the intention of inducing or rewarding the improper performance of a function or activity that is expected to be carried out in good faith, impartially, or in a position of trust.
What are the penalties for accepting a bribe?
In the UK, the penalties for accepting a bribe (the offence of being bribed under section 2 of the Bribery Act 2010)
If convicted of accepting, requesting, or agreeing to receive a bribe, an individual may face:
Up to 10 years’ imprisonment, and/or
an unlimited fine. [en.wikipedia.org], [publicatio…liament.uk]
In addition, the court may impose:
confiscation of criminal property under the Proceeds of Crime Act 2002, and
disqualification from acting as a company director
15) Give an example behaviour for each Rule of Conduct
1) Honesty, integrity and professional obligations
Members and firms are open and transparent with clients about their fees and services.
Members and firms act to prevent others being misled about their professional opinion.
2) Maintaining professional competence
Members and firms only undertake work that they have the knowledge, skills and resources to carry out competently.
3) Providing good quality and diligent service
Members and firms inform clients promptly and seek their agreement if it is proposed that any of the terms of engagement or estimated fees or costs be changed.
Members and firms undertake their work in a timely manner; with due care, skill and diligence, and in accordance with RICS technical standards
4) Treating others with respect and encouraging diversity and inclusion
Members and firms do not bully, victimise or harass anyone
Members and firms respect the rights of others and treat others with courtesy.
5) Acting in the public interest and taking responsibility
Members and firms respond to complaints made against them promptly, openly and
professionally.
Members and firms manage their professional finances responsibly
