Ethics Focus Items

Question 1

What are the 5 professional and ethical standards of the RICS?

Answer 1

1. Members and firms must act with honesty and integrity and ensure they’re acting to their obligations, including their RICS obligations
2. Members and firms must maintain their professional competence and ensure services are carried out by a competent individual
3. Members and firms must provide a good quality and diligent service to their clients
4. Members and firms must treat all others with respect and encourage diversity and inclusion
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

Question 2

What are the professional obligations of RICS members?

Answer 2

Must comply with CPD requirements.

Must cooperate with RICS.

Must provide all information requested by the Standards and Regulations Board.

Question 3

What are the obligations for RICS regulated firms?

Answer 3

Firms must publish a complaints handling procedure and complaints log.

All work is covered by appropriate PI cover.

Firms with a sole principal must make arrangements for their work to continue in the event of incapacity, death or absence from work.

Must cooperate with RICS.

Must provide all information requested by the Standards and Regulation Board.

Must display business literature in accordance with RICS policy.

Must report to RICS under the Rules for the Regulation of Firms.

Question 4

What is conduct befitting a chartered surveyor?

Answer 4

Upholding the highest standards of professionalism, integrity and competence as set out in the Rules of Conduct.

Question 5

What are the key requirements when registering a RICS registered firm?

Answer 5

Comply with the RICS Rules of Conduct.

Set up a complaints handling procedure and use an approve ADR provider.

Hold the required PI cover.

Question 6

When are firms required to register with RICS.

Answer 6

When providing a surveying services to the public.

The firm is operating in a regulated area.

At least 50% of the firm principals are RICS members.

Question 7

What PI limit is required by RICS?

Answer 7

This is dependent on turnover.

For firms earning over £200,001 the limit is £1m.

For a turnover between £100k and £200k, it is £500k.

For under £100k it is £250k.

Question 8

What is your firms complaints handling procedure?

Answer 8

Senior members of staff are notified of the complaint and it is captured in the companies complaints log.

The complaint is then internally reviewed and a clear resolution attempt is identified.

Should this not rectify the issue in the complaint, it is escalated to an independent redress.

Depending on the scale of the complaint my firm would either let the RICS know or their PI provider.

Question 9

Please explain your understanding of the term conflict of interest?

Answer 9

Where the interests or duty of a RICS member conflicts with the service owed to a client or party.

This could also be caused by personal beliefs, for example if I was Vegan, this would conflict with a client who was seeking advice on a abattoir.

Could also be caused by the knowledge of confidential information.

Question 10

What is your firms gift and hospitality policy?

Answer 10

A limit of £150 for receiving.

£250 for giving.

Cannot accept cash, vouchers, valuable items or gifts.

The host must be present when attending a hospitality event.

Question 11

What processes must be in place when handling client money.

Answer 11

Must be kept in a separate client account away from the firms money.

Perform monthly reconciliation to ensure the balance matches the statements.

Any transactions are made with client authorisation.

Inform clients where the money is held.

Question 12

What are the RICS disciplinary procedures?

Answer 12

Referred to the standards and regulations board.

If the breach is deemed serious then a disciplinary action may be considered.

For less serious cases, a Regulatory Compliance Order (or consent order) may be issued.

May be issued a fixed penalty notice and/or caution.

If a member does not achieve their CPD requirements they will be issued a caution.

If the offence occurs a second time in ten years, they will receive a caution and a fine.

Question 13

What is the structure of the RICS?

Answer 13

The Governing Council - oversees the overall strategy of RICS and approves any changes to this.

Standards and regulations board - delivers independent professional regulations within the RICS.

RICS Board - Global Members committee, Audit, Risk Assurance and finance committee, professional group panels, Knowledge & Practice committee.

Question 14

What are the by laws?

Answer 14

Set of rules to govern it’s own operations and members.

Defines membership qualifications.

Conduct expectations.

Structure of the organisation.

Question 15

What are some example behaviours of the rules of conduct?

Answer 15

Rule 1
- Do not mislead others by their actions.
- Do not allow themselves to be influenced improperly by others as a result of gifts or hospitality.

Rule 2
- Only undertake work that they have the knowledge and skills and resources to carry out competently.
- Supervise employees undertaking work for them and ensure that these employers have the required skill to undertaken the works.

Rule 3
- Understand clients needs before taking on any professional work.
- Agree with clients the scope of service, it’s limitations and timescales.

Rules 4
- Respect the rights of others and treat others with courtesy
- Do not bully, victimise or harass anybody.

Rule 5
- Respond to complaints made against them.
- Manage their professional finances responsibly.

Question 16

What are some case studies associated with the rules of conduct?

Answer 16

Client Pressure

Fair recruitment

Confidentiality

Question 17

What is the purpose of the RICS?

Answer 17

Regulate firms and memebers, provide training for those firms and memebers to achieve the highest standard of services, maintain those standards and lead solutions to the built environment.

Question 18

What are the requirements for using the RICS logo?

Answer 18

Comply with the Rules of Conduct.

Not use the logo in a manner which could bring the profession into disrepute.

Not use the RICS logo in a manner that could have an adverse impact on it’s status as a registered trademark.

Question 19

What are the RICS requirements for a PI policy?

Answer 19

Underwritten by a listed insurer.

Covers past employees.

Fully retroactive.

Question 20

RICS requirements for Complaints Handling.

Answer 20

Clearly signpost the complaints process to clients.

Keep a log and record keep complaints.

Acknowledge receipt of complaint within 7 days and full response within 28 days.

Two stage handling process.

If complaint cannot be dealt with it is referred to ADR.

May need to inform insurers.

Ensure staff training and awareness.

Question 21

What are the types of conflict of interest?

Answer 21

Party - conflicting between two parties (produce a cost plan for client a, client b then asks you to act as EA for their fit out)

Own Interest - conflicts with the RICS member themselves (client asks to produce cost plan for abattoir but you’re vegan)

Confidential - holding confidential information about a party (produce cost plan for client A and gain sensitive information on budget and procurement strategy, client B then asks for the same advice)

Question 22

What is informed consent? What are the four points?

Answer 22

Where a party who may be adversely affected by a conflict of interest acknowledges its existence but instructs a regulated firm to continue despite the conflict of interest.

Even if informed consent is given, it does not mean a RICS regulated firm should continue with the work if they believe it will impact their service.

RICS provide guidance on this in the professional standard via points a, b, c, d, e, etc.

Question 23

The RICS has two schemes for client money handling, what are these schemes?

Answer 23

RICS regulated firms that hold client money must ensure that they are registered with the appropriate scheme.

RICS Client Money Protection Schemes for Surveying Services - applies for client money held by RICS regulated firms.

RICS Client Money Protection Scheme for Property Agents - applies to property agents who hold money in connection with letting agency work and property management.

Question 24

What are the six professional group panels.

Answer 24

’- Building surveying and building control
- Commercial property
- Construction
- Land and natural resources
- Residential property
- Valuation

Question 25

What are some current issues?

Answer 25

Surveying skills shortage report. Strengthen CPD framework. - Changes to some of the CPD exemptions associated with membership concessions.

Question 26

What is the maximum level of uninsured excess for PI?

Answer 26

For indemnity limits up to the value of £10m the uninsured excess must be the greater of 2.5% of the insured sum or a minimum of £10k. RICS do not impose an specific limits on policies over £10m.

Question 27

Can you explain the difference between the RICS Rules of Conduct for Members and for Firms?

Answer 27

Members are responsible for upholding their own ethical and professional behaviour in line with the Rules of Conduct. Firms must create an environment that supports the professional standards and implement its own governance and compliance in line with the Rules of Conduct.