RICS Ethics

Question 1

How does the RICS ensure firms abide by the rules of conduct?

Answer 1

RICS ensures firms comply by conducting audits

Firms have to provide information when registering with the RICS and in an annual return

Question 2

What is the central purpose of the RICS?

Answer 2

1. To maintain the highest standards of education and training
2. To protect consumers through strict regulation of professional standards
3. To be the leading source of information and independent advice on land, property, construction and associated environmental issues

Question 3

What are the rules of conduct for members and firms? (February 2022)

Answer 3

members and firms must:

1. act with integrity and honesty and comply with obligations of RICS
2. must maintain competence
3. must provide high quality service (due diligent)
4. must treat each other with respect and encourage diversity and inclusion
5. Must act in the public interest and take responsibility for actions

Question 4

What are the professionals obligations of the RICS?

Answer 4

3 member obligations and 7 for firms:

Members must:

1. complete CPD requirments
2. co operate with RICS
3. promptly provide RICS all infomation when required by the board.

Firms must:

1. publish a complaints handling procedure
2. must ensure that all previous and current work is covered by appropriate PI cover
3. firms with sole principal must make appropriate arrangements for work to continue in event of death or all absences
4. Firms must cooperate with RICS
5. Firms must promptly provide information to the board when required by RICS
6. firms must display RICS regulation on their literature
7. firms must report to the RICS any matter which is required to report under the rules for registration of firms

Question 5

What is a conflict of interest?

Answer 5

a situation when an individual involved in multiple interests finds themselves in a decision-making situation where serving one of those interests would harm another

Question 6

What are the different types of conflict?

Answer 6

1. Party Conflict- two opposing parties you work for.
2. Own interests conflict- you are conflicted personally / firm is conflicted
3. Confidential information conflict- When you have a duty to provide information to one client but to keep that same information from another client.

Question 7

When can you proceed despite a conflict of interest?

Answer 7

When all parties are informed and you are given consent.

Question 8

What is the Royal Charter mean- as in RICS?

Answer 8

The RICS has a seat on the privy council to the crown

Members promote the profession for public benefit

Question 9

What is PII Cover?

Answer 9

professional indemnity insurance

it covers the cost of compensating clients for loss or damage resulting from negligent services or advice provided by a business or an individual

Question 10

How much PII cover is needed?

Answer 10

Depends on turnover-

Question 11

How much run off cover is needed?

Answer 11

6 years

Question 12

How much cpd is needed for members?

Answer 12

20 hours min a year.

10 must be formal

Ethics must be done every 3 years

Question 13

how should clients money be handled?

Answer 13

In a separate named account

Question 14

what is a locum agreement?

Answer 14

An agreement in place where if a sole practiioner dies or is absent another chartered surveyor or professional (a locum).

may need to handle - CHP, client money, access files to ensure work continues

Question 15

how must the RICS logo be used

Answer 15

specific size and colour

Question 16

What is the RICS motto

Answer 16

Modus Est Rebus (there is measure in all things)

Question 17

Who is the president of the RICS?

Answer 17

Clement Lau

Question 18

What is the Levitt Review?

Answer 18

a review carries out by Alison Levitt into RICS governance in 2021 after the unfair treatment of non exec members of the governing council.

Was controversial because it was against the RICS ethics.

Now there is a build back better process and the issues have been resolved.

Question 19

How must you quote for level of service?

Answer 19

must quote on level of service

NO undercutting

use TOEs or standard terms

Question 20

What is the difference between formal and informal cpd?

Answer 20

Formal is structured learning, whereas informal is self-directed learning.