1
Q
What are the 2021 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.
2
Q
Name 3 professional obligations for RICS members?
A
- Members must comply with the CPD requirements set by RICS (20 hours a year – 50% formal).
- Members must cooperate with RICS.
- Members must promptly provide all information reasonably requested by the Standards and Regulation Board, or those exercising delegated authority on its behalf.
3
Q
Name 7 obligations for RICS regulated firms
A
- Firms must publish a complaints-handling procedure, which includes an alternative dispute resolution provider approved by RICS, and maintain a complaints log.
- 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.
- 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.
- Firms must cooperate with RICS.
- Firms must promptly provide all information reasonably requested by the Standards and Regulation Board, or those exercising delegated authority on its behalf.
- 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.
- Firms must report to RICS any matter that they are required to report under the Rules for the Registration of Firms.
4
Q
Name legislation and guidance that you would reference in relation to H&S for your work.
A
- Health and Safety for Residential Property Managers, 1st edition (2016)
- Building Safety Bill
- Fire Safety Bill
- Health Safety at Work Act 1974
- Management of Health and Safety at Work Regulations 1999
- RICS Surveying Safely (2nd ed. - 2019)
5
Q
Explain your understanding of the term HSE?
A
▪ HSE stands for the Health & Safety Executive
▪ The HSE is the UK national authority for managing work related health, safety and illness issues
▪ They act in the public interest to reduce work related injuries and incidents
▪ Their aim is to protect people’s health and safety by ensuring that risks are properly managed
▪ They also support businesses to change and adapt in order to remain compliant with occupational health and safety legislation
6
Q
What are the requirements of a complaints handling procedure?
A
- Be fit for purpose (it should reflect the size and structure of the business made available to all staff
- Be understood by all staff
- Readily be shared with complainants or potential complainants – supplying them with a copy should be routine
- Be regularly reviewed at a senior level – record evidence of review, to include reviewer details and review date
- Be agreed with PII brokers/provider(s) – the CHP should reflect processes that do not compromise PII cover and
- Provide details of access to independent redress if the firm cannot resolve the complaint.
7
Q
List the 6 RICS Ethical Standards (CHRIS R)
A
- Competence
- Honesty
- Respect
- Integrity
- Service
- Responsibility
8
Q
What 9 steps must be taken to form an RICS Regulated firm?
A
- Inform the RICS
- Apply with the RICS Registration Board
- Nominate a responsible person / RICS contact
- Put in place adequate PI cover
- Create and provide a complaints handling procedure
- If a sole operator, put in place procedures in the event of incapacity or death
- Ensure correct use of the RICS logo kit
- Put in place a CPD management system
- Submit an annual return and end of year audit
9
Q
Name 5 pieces of legislation that must be adhered to when starting a new company
A
- Bribery Act
- Business Names Act
- H&S at Work Act
- Equality Act
- Financial Services Act
10
Q
Name 5 steps that must be taken when closing down an RICS Regulated practice
A
- Inform the RICS
- Return client money
- Inform the PI insurers
- Ensure adequate run off cover is in place (6-15 years @ £1m)
- Retain client files
11
Q
Name 5 benefits of RICS membership
A
- Status
- Recognition
- Market advantage
- Knowledge
- Network
12
Q
Name 3 key roles of the RICS as an organisation
A
- Maintain professional standards
- Retain public confidence in the profession
- Provide information and advice
13
Q
What is the minimum PI cover required of RICS firms
A
£100k revenue (or less) - £250,000
£100-200k revenue - £500,000
£200k (or more) - £1m
14
Q
Name 3 key stages of conflict avoidance
A
- Avoidance
- Written advice
- Manage conflict
15
Q
Name the 6 principles firms must follow in relation to the Bribery Act 2010
A
- Proportionality (procedures to prevent bribery are proportionate to the bribery risks it faces and to the nature, scale and complexity of the commercial organisations activities)
- Top-level commitment (the top-level management of a commercial organisation are committed to preventing bribery by persons associated with it)
- Risk Assessment (organisation assesses the nature and extent of its exposure)
- Due diligence (organisation applies due diligence procedures, taking a proportionate and risk based approach)
- Communication (organisation seeks to ensure that its bribery prevention policies and procedures are embedded and understood)
- Monitoring & Review (organisation monitors and reviews procedures)
16
Q
What document provides the guidance around the PI cover requirements?
A
RICS Regulation - UK professional indemnity insurance requirements (April 2022)
17
Q
What is the maximum level of uninsured excess? (PI insurance question)
A
IF firm’s turnover in the preceding year is £10m or less - the greater of 2.5% of the sum insured or £10k
IF firm’s turnover in the preceding year is more than £10m - no limit
18
Q
Provide some examples of complying with Code of Conduct Rule 1
A
Honesty & Integrity
- Don’t accept gifts
- Identify & manage conflicts of interest
- Open & Honest to clients about services
19
Q
Provide some examples of complying with Code of Conduct Rule 2
A
Professional competence
- Firms only accept work they are qualified to do
- Firms ensure the ongoing supervision of junior team members to ensure compliance
20
Q
Provide some examples of complying with Code of Conduct Rule 3
A
- Agree with clients the scope of the service to be provided and its limitations, and timescales for the work
- Promptly agree any changes to fees or service
- Have effective quality assurance processes for work
21
Q
Provide some examples of complying with Code of Conduct Rule 3
A
Good & Diligent Service
- Agree with clients the scope of the service to be provided and its limitations, and timescales for the work
- Promptly agree any changes to fees or service
- Have effective quality assurance processes for work
22
Q
Provide some examples of complying with Code of Conduct Rule 4
A
Diversity & Inclusion
- Treat everyone fairly and do not discriminate against anyone
- Check that supply chains do not involve modern slavery
- Develop an inclusive culture in their workplaces and address unconscious bias
23
Q
Provide some examples of complying with Code of Conduct Rule 5
A
Maintain public confidence in the profession
- Support directors, partners, employees, colleagues or clients who have acted in good faith to report concerns
- Respond to complaints made against them promptly, openly and professionally
- Do not dissuade complainants from approaching an alternative dispute resolution provider
24
Q
Why did the RICS update the Rules of Conduct?
A
- Following research and consultation, the majority voted in favour of replacing the 2007 Rules of Conduct and separate Global Professional and Ethical Standards.
- To provide a single document to enable greater clarity for RICS members and firms.
- Greater focus on clearer example behaviors, understanding evolving technology and tackling climate change.
25
Which previous documents were replaced by the 2022 Rules of Conduct?
* Rules of conduct for Members
* Rules of Conduct for Firms
* Global Professional and Ethical Standards
26
Name some key objectives set-out within the RICS business plan for 2021-22
1. Support the profession as it recovers from Covid (financially etc)
2. Use surplus cash to pay pay furlough money
3. Work to ensure RICS qualification remains relevant and advantageous
27
What RICS Guidance Note relates to Covid-19?
RICS ‘Covid-19 Guide to Surveying Services’
Contains a range of guidance notes to work safely and in
line with government guidelines through the Pandemic
Specific guidance on:-
• Physical Inspections for Residential Properties.
• Physical Inspections for Non-domestic Properties.
• Residential Valuations and Surveys.
• Reopening of the Housing Market.
• Reopening of Commercial Buildings.
28
What RICS Guidance note has been published which relates to building safety, following Grenfell?
**‘Cladding for Surveyors 1st Edition March 2021’**
Aims to improve surveyors knowledge of external wall cladding systems that may be considered within the External Wall Fire Review.
29
What is an EWS1?
**External Wall System Fire Review Certificate**
It is not a building safety certificate but a re-mortgaging
valuation tool
30
What year was the RICS founded?
1868
(Royal Charter in 1881)
31
Why do you want to become a member?
I want to be part of a prestigious organisation which allows me to progress in a career I am passionate about.
It will give me the status and recognition, which will enhance my work with clients by promoting trust in my work.
It will also allow me to continue to develop my knowledge and network
32
What governs the rules regarding regulation of RICS firms?
RICS Rules of Regulation for Firms (7th ed. 2020)
33
Under what circumstances is a firm **required** to register for RICS Regulation?
A Firm is required to register for regulation by RICS if:
1. The Firm provides surveying services to the public;
2. The Firm is operating in Regulated Area A (UK)
3. At least 50% of the Firm’s Principals are RICS Members.
34
Under what circumstances is a firm eligible to register for RICS Regulation?
A Firm is eligible to register for regulation by RICS if:
1. The Firm provides surveying services to the public; and
2. At least 25% of the Firm’s Principals are RICS Members.
35
What is the RICS Ethical Decision Tree?
The decision tree provides a framework of questions which members should ask themselves when facing a situation in which they are asked to act in a potentially unethical manner.
Ultimately, would you be happy if the information/act were to go public?
36
Name three steps on the RICS Ethical Decision Tree
1. Do you have sufficient facts on the issue?
2. Is it legal?
3. Would you be comfortable for your actions to be made public?
37
Name three ways in which an RICS disciplinary procedure can be triggered
1. Complaint to RICS
2. Allegation by 3rd party
3. Information established by RICS
38
What are the three levels of RICS disciplinary action?
1. Action by Head of Regulation
2. Regulatory Tribunal
3. Appeal Panel
39
What steps can the Head of Regulation take during RICS disciplinary procedures?
1. **Fixed penalty notice**
2. **Regulatory Compliance Order** (a written document which states what a member or firm must stop doing)
3. **CPD Sanctions** (place an obligation on a member to follow the CPD requirement)
4. **Refer to Disciplinary Panel**
40
When is action by the RICS Regulatory Tribunal taken?
Serious breaches of conduct.
41
What penalties are available to the RICS Regulatory Tribunal?
1. Compliance Order
2. Unlimited fine per breach
3. Conditions on future RICS registration
4. Expulsion
5. Publication of results in Modus/website/newspaper
42
What are the different advice levels of RICS documents?
1. International Standards (Mandatory)
2. Professional Statements (Mandatory)
3. Practice Statements (Mandatory)
4. Guidance Notes (voluntary)
5. Codes of Practice (mandatory or recommended)
43
Provide examples of RICS International Standards
RICS Valuation - Global Standard (2019)
International Property Measurement Standards (IMPS)
44
What is IBOS?
International Building Operational Standard
* A framework, provided to building organisations / landlords to measure and benchmark building performance, by collecting consistent data.
* Commercial focussed
* Aims to influence planning - and embed ESG principles into strategies
* Also looks at user experience
45
Name 5 key changes in the updated RICS Rules of Conduct
1. A simpler structure
2. Clear examples
3. Focus on respect, diversity & inclusion
4. Understanding evolving technology
5. Tackling global challenges
46
When did the new RICS Rules of Conduct come into force?
February 2022
47
What are the 6 ethical principles that underpin the new RICS Rules of Conduct? (HICSRR)
* honesty
* integrity
* competence
* service
* respect
* responsibility
48
What is the RICS motto?
*Est modus in rebes* - there is measure in all things
49
What are Clement Lau's aims during his tenure?
* Extend the reach and influence of RICS’ thought-leadership
* Drive the organisation’s digital capability during his term
50
What is the IESC?
International Ethics Standards Coalition.
A coalition of real-estate organisations committed to upholding an agreed set of global ethical principles across the industry.
51
What are the standards promoted by the International Ethics Standards Coalition (IESC)?
1. Accountability
2. Confidentiality
3. Conflict of Interest
4. Financial Responsibility
5. Integrity
6. Lawfulness
7. Reflection
8. Standard of Service
9. Transparency
10. Trust
52
When is the next RICS business plan due?
2023-2025
53
Name a guidance note provided by the RICS in relation to Covid
Covid-19 Guide to Surveying Services
54
Name an RICS guidance note relating to cladding
Cladding for Surveyors 1st Edition March 2021
55
What key event has recently taken place in relation to climate change globally?
COP 26
* UN climate change conference
* Phasing out coal
* Money for developing nations to aid sustainability
56
What is The Bichard Review?
Governing Council has appointed Lord Bichard to lead an independent review into the Institution’s Purpose, Governance and Strategy.
Launched in response to the Levitt Review.
57
Under what circumstances would you decline an instruction?
* Conflict of interest
* Not competent
* Not in client's best interest
* Don't have adequate PI
* Client won't accept terms of engagement
58
What is a liability cap?
* Contractual agreement that a client can only claim damages up to a certain amount
* RICS recommends you agree one (if regulated firm)
* Doesn’t have to be at same level as max PI cover
59
When can a firm use the designation ‘Chartered Surveyor’?
* 50% of principles are members
* Provide professional surveying services
APC
flashcards
Decks in class (17)
# Cards
-
Leasehold Reform Act27
-
RICS59
-
Health & Safety14
-
Key Guidance & Legislation28
-
Landlord & Tenant29
-
Measurement14
-
Valuation principles26
-
Periods - dating property3
-
Communication & Negotiation3
-
Diversity, Inclusion & Inclusive Environments16
-
Conflict avoidance, management and dispute resolution procedures12
-
Conflicts of Interest 1st Edition 201714
-
Countering bribery and corruption, money laundering and terrorist financing20
-
Client Money Handling6
-
Inspection9
-
Data Protection3
-
Accounting4
