Ethics Q&A

Question 1

What are the THREE levels of disciplinary action

Answer 1

1. Action by the Head of Regulation
2. Disciplinary Panel (drawn from the independent Regulatory Tribunal)
3. Appeal Panel

Question 2

What function at the RICS is in charge of disciplinary procedures?

Answer 2

Standards and Regulations Board

Question 3

What RICS literature covers disciplinary measures?

Answer 3

RICS regulatory Decision Making, 2022

Question 4

What are the four steps the Head of Regulation at the RICS initiate upon completion of their initial investigation?

Answer 4

1. Serve a fixed penalty notice.
2. Make a regulatory Compliance Order.
3. Refer the matter to a single member of the Regulatory Tribunal for consideration.
4. Refer the matter directly to the Disciplinary Panel

Question 5

When are fixed penalties used?

Answer 5

When there is a breach of the Rules relating to only the supply of information to the RICS by firms or members.

Can be a FINE or a CAUTION.

Question 6

What instance are Regulatory Compliance Orders used?

Answer 6

For low level breaches - Which can easily be corrected.

Written document which outlines what actions a firm of member must take in a specified time. AND pay a fine.

In the case of not undertaking enough CPD. Can be escalated to Disciplinary Panel.

Question 7

When would the Disciplinary Panel be used?

What are the penalties?

Answer 7

For more serious breaches of conduct.

The Head of Regulation can consider calling a hearing.

Penalties include:
1. Issue of regulatory compliance order.
2. Reprimand
3. Fine.
4. Unlimited Fine proportionate to the breach.
5. Expulsion of member of removal of the firm.
6. Might require publication on the RICS Modus magazine or local newspaper.

Question 8

What does the appeal panel do?

Answer 8

Consider if a member of a firm can appeal against the disciplinary procedures mentioned previously.

Membership of the panel can include lay members (non RICS members).

Question 9

What RICS guidance is there for Use of Social Media?

Answer 9

Guidance for RICS members, 2021.

Question 10

What is covered in the Guidance for RICS members, 2021?

Answer 10

Outlines the importance of social media to members and firms. It reminds members of the high standards and level of professionalism expected by the RICS by each member.

RICS can take disciplinary action if social media posts may damage the public confidence or trust in the profession.

Question 11

Give examples of when the RICS might or might not take actions on social media posts.

Answer 11

Likely investigate:
-Discrimination
-Dishonesty
-Abusive or threatening posts
-Harassment and bullying
-Ignoring advice or warnings about concerns.

Not investigate:
- Critical posts of the RICS, its policies and performance. Not individuals.
-Use of professional and respectful language in some.
-Removal if requested.

Question 12

What are the three main sources of RICS material?

Answer 12

1. RICS Professional Standards - requirements expected by the RICS for members and firms. Include mandatory requirements and recommendation + best practice.
2. RICS Practice Information -
   To support practice, knowledge and performance. DO NOT CONTAIN advice.
3. RICS Practice alerts
   Key tools for warning and altering members and firms of areas of risk the RICS has concerns with. i.e. warnings of new legislation.

Question 13

What should you consider when negotiating fees?

Answer 13

1. Firms should avoid price fixing, aggressive fee cutting or collusion with competitors.
2. Fees should be market based and agreed on an ad-hoc basis.
3. Not be seen to be undercutting other firms. Healthy competition is encouraged.
4. Enter into fee negotiations with a client once you have submitted your initial bid.
5. Transparent with clients/ consumers if you in receipt of a referral fee and state it in the terms of engagement.
6. referral fees must be considered in the context of the Bribery Act 2010 and the Rules of Conduct 2021.

Question 14

What are the 3 steps you take before under accepting an instruction?

Answer 14

1. Check you are personally competent (SUK).
2. Confirm no conflicts of interest.
3. Confirm terms of engagement in writing before working on any instruction.

Question 15

What are usually contained within the ToE

Answer 15

Terms include:
1. Proposed Fee Basis
2. Payment of expenses
3. Copy of the firms complaints handling procedure upon request.

Question 16

What does the Redbook Say should be included in ToE?

Answer 16

VPS 2 - Nature of Restriction must be contained in the Toe i.e. Desktop