TEXTBOOK ETHICS Flashcards

Question

Colleagues acting inappropriately at social event — what do you do?

Answer 1

Address immediately; prevent reputational damage; escalate formally if needed.

Answer 2

To evidence reasonable competence in negligence or disciplinary proceedings.

Answer 3

Collection of technical practice documents covering construction lifecycle.

Answer 4

Rules for use by firms and personal designation guidance.

Answer 5

Professional Standards and Practice Information.

Answer 6

Sets mandatory (“must”) and best practice (“should”) requirements.

Answer 7

Supplementary non-mandatory guidance.

Answer 8

Be trustworthy; transparent; respect confidentiality; avoid conflicts; refuse improper gifts.

Answer 9

To avoid negligence and complaints.

Answer 10

Be accountable; act with care; have complaints procedure; challenge wrongdoing.

Answer 11

Best advice; act within scope; transparency; clear communication.

Answer 12

Understand impact; fulfil obligations; act professionally at all times.

Answer 13

Review actions; maintain CPD; follow guidance; address unethical behaviour.

Answer 14

Whistleblowing systems; ethical appraisals; training; promote CPD/APC.

Answer 15

Integrity = internal moral code; ethics = external rules/standards.

Answer 16

RICS ethics decision tree.

Answer 17

Rules for Registration of Firms – Version 8 (Feb 2022).

Answer 18

If providing surveying services to public and operating in UK with ≥50% RICS principals.

Answer 19

Providing services with ≥25% RICS principals or meeting compliance plan criteria.

Answer 20

Professional appointed to stand in for sole practitioner.

Answer 21

Typically another Chartered Surveyor (or trusted professional).

Answer 22

Must be covered under own or firm’s PII.

Answer 23

Only if proportionate and not impairing impartiality; otherwise decline.

Answer 24

Value; timing; proportionality; impartiality; consistency; compliance.

Answer 25

Continuing Professional Development.

Answer 26

20 hours annually; 10 formal; ethics maintained; record by 31 January.

Answer 27

In-house training; external courses; reading; mock interviews; seminars.

Answer 28

Formal = structured with objectives/assessment; Informal = self-managed relevant learning.

Answer 29

RICS CPD decision tree.

Answer 30

Learning without purpose or relevance.

Answer 31

Via RICS website/app.

Answer 32

Address weaknesses; hot topics; future project needs.

Answer 33

RICS publications; CPD providers; industry news; discussions; employer research.

Answer 34

Actual, perceived or potential risk that judgement is compromised.

Answer 35

Yes — Conflicts of Interest, 1st edition, March 2017.

Answer 36

Professional standard.

Answer 37

Party; Own interest; Confidential information.

Answer 38

Acting for competing parties; expert witness with interest; dual representation.

Answer 39

Agreement given with full understanding of risks and implications.

Answer 40

Disclose; obtain consent; implement safeguards; decline if unmanaged.

Answer 41

Assess impartiality; notify client; obtain consent or decline.

Answer 42

Inducement or reward for improper advantage.

Answer 43

UK legislation criminalising bribery and failure to prevent bribery.

Answer 44

Proportionality; top-level commitment; risk assessment; due diligence; communication; monitoring/review.

Answer 45

UK individuals and organisations operating in UK.

Answer 46

Follow company policy; report suspected bribery.

Answer 47

Unlimited fines; up to 10 years imprisonment; corporate liability.

Answer 48

Disguising criminal proceeds as legitimate funds.

Answer 49

Submit SAR to National Crime Agency.

Answer 50

Refuse; advise bank transfer; report suspicion if necessary.

Answer 51

Abuse of entrusted power for private gain.

Answer 52

Businesses colluding to fix prices and reduce competition.

Answer 53

Providing funds to support terrorist acts or organisations.

Answer 54

Payment to expedite routine official action.

Answer 55

Countering bribery, corruption, money laundering & terrorist financing (2019).

Answer 56

Illegal exploitation of people for gain.

Answer 57

Modern Slavery Act 2015.

Answer 58

Forced labour; debt bondage; trafficking; child slavery; forced marriage.

Answer 59

Modern Slavery Helpline or Police.

Answer 60

Insurance covering negligence claims and legal costs.

Answer 61

UK PII Requirements Version 10 (effective 1 July 2024).

Answer 62

Protect firm and clients from financial loss.

Answer 63

Any one claim = per claim limit; aggregate = total annual limit.

Answer 64

Covers claims regardless of when work was done (if no retro date).

Answer 65

Keep records; clear scope; act within competence; follow guidance; manage workload.

Answer 66

Employee personally liable after negligent valuation when firm dissolved.

Answer 67

≤£100k turnover: £250k; £100k–£200k: £500k; £200k+: £1m.

Answer 68

≤£10m limit: greater of 2.5% or £10k; £10m+: no limit.

Answer 69

Notify insurer immediately; comply with policy; inform client; mitigate error.

Answer 70

Decline; PII won’t cover; suggest formal appointment via firm.

Answer 71

PII covering historic liabilities after business ceases.

Answer 72

Minimum 6 years from cessation of practice.

Answer 73

The motto is ‘Est Modus in Rebus’ which in Latin translates to ‘There is measure in all things’.

Answer 74

To qualify and equip their members to offer the highest standards of professional service. To promote and enforce standards. To lead solutions to the major challenges facing the built environment through professional expertise.

Answer 75

It was founded in 1868.

Answer 76

The RICS was founded in 1868 with the Royal Charter being granted by the Privy Council in 1881. The RICS is self-regulated and internally monitored meaning that it is not regulated by the Government or external parties. The Bye-Laws determine how the RICS is regulated. The Governing council manage and agree the strategy for the RICS. The Regulatory board, audit committee and management board are beneath the governing council and execute the strategy set by them.

Answer 77

Proportionality. Accountability. Consistency. Targeting. Transparency.

Answer 78

Ethics are a set of moral values. Rules of conduct are a framework that we work to.

Answer 79

Up until the 1st February 2022 there were 5 Global Professional & Ethical Standards. From the 2nd February 2022 onwards the Global Professional & Ethical Standards have been consolidated within the New Rules of Conduct 2022.

Answer 80

Act with integrity. Always provide a high standard of service. Act in a way that promotes trust in the profession. Treat others with respect. Take responsibility.

Answer 81

The New Rules of Conduct are effective from the 2nd February 2022.

Answer 82

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.

Answer 83

The previous rules had been in place since 2007. Following research and consultation with RICS Members, Firms and Members of the public, the majority voted in favour of replacing the existing Rules of Conduct and separate Global Professional and Ethical Standards. This was to provide a single document to enable greater clarity for RICS members and firms. I also understand there is now a greater focus on clearer example behaviors, understanding evolving technology and tackling climate change.

Answer 84

The Rules of Conduct October 2021 Global Practice Statement will overhaul the previous separate documents: Rules of conduct for Members. Rules of Conduct for Firms. Global Professional and Ethical Standards. Appendix A of the Rules of Conduct now contains the professional obligations of Members and Firms.

Answer 85

Members must comply with the CPD requirements set by the RICS which requires 20 hours of CPD for each calendar year, 10 hours of which must be formal CPD. 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.

Answer 86

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.

Answer 87

To provide a framework that we can all work to and so the client knows he is getting a set level of service. As well as being an important tool for the Institution, the Rules of Conduct are also a useful professional guide for individual institution members.

Answer 88

I verify the facts and confront him reminding him of his duties as a member of the RICS. I inform the RICS specifying my relationship to the person and any corrective action which I believe my brother-in-law is committed to put in place.

Answer 89

Not every shortcoming will necessarily give rise to proceedings. A formal investigation by the Head of Regulation of the RICS is the first step in the process. The RICS can request information and/or visit and inspect to investigate compliance. Members must cooperate fully with all enquiries.

Answer 90

Someone complaining to the RICS. An allegation by a client or third party. Information received or established by the RICS.

Answer 91

Fixed penalty. Consent order. Disciplinary panel.

Answer 92

A fine by the RICS.

Answer 93

It is a written agreement between the RICS and a member or firm concerning a disciplinary issue on a breach of the RICS rules. It can require the member to take certain corrective actions, or restrain them from taking certain actions for a specified period of time and may require them to pay a fine or costs.

Answer 94

They are used for more serious breaches of conduct. The panel will usually be held in public. The burden of proof is on the RICS. A balance of probabilities approach will be adopted.

Answer 95

Gross, persistent or willful failure to comply with an RICS rule of conduct. Fraud, dishonesty, conviction of a serious criminal offence, gross incompetence, deliberate discrimination, misappropriation of a client’s money.

Answer 96

Contact the RICS for guidance and obtain a company start up pack. Inform the RICS and register for regulation. Appoint a contact officer for all RICS communication. Prepare a complaints handling procedure. Obtain Professional indemnity insurance cover. Abide by the Rules of Conduct for Firms. Use the designation ‘Regulated by RICS’ on all practice material.

Answer 97

Yes as long as it is in a trustful and responsible manner in line with the Rules of Conduct for Firms.

Answer 98

Professional Indemnity Insurance. Employer’s Liability. Public Liability. Building’s insurance of an office premises.

Answer 99

It is called annual return and carried out on-line. Failure to do so leads to a fixed penalty. It includes:- Type of business and staffing. Nature of clients. Training provision. Complaints handling procedures details and records. PI insurance details. Whether the firm holds clients’ money.

Answer 100

Preserve the security of clients' money which does not belong wholly to the company. RICS regulated firms that operate a client account must:- Set clear segregation of duties for employees. A Principal oversees the client money accounting functions. Principles cannot override controls. Competent and knowledgeable staff are to process clients' money with cover provided for long term absence. Accounting systems and data must be secure. Client money must be kept separate and clearly identifiable with the word ‘client’ included in the bank account name. Clients must always have access to funds. We must agree the terms and advise the client on bank details. The account must not be overdrawn. We must maintain client ledgers and provide a running balance.

Answer 101

General accounts hold money for more than one client. Discrete accounts reference a single named client.

Answer 102

A duty of care is owed to all clients and 3rd parties using reasonable skill and care. If it is breached due to Negligence a claim may arise resulting in damages being paid or a Professional Indemnity Insurance claim. Negligence is a failure to provide the duty of care that is owed to the client.

Answer 103

This case dates back to 2001 and highlights the importance of having run-off cover in place. A surveyor was sued for negligence by a former client. Because the surveying firm was no longer in existence therefore the individual surveyor was pursued for damages successfully. This caused a big shock in the industry and highlighted the need to ensure that run-off cover is in place for all previous employees.

Answer 104

6 years when executed under hand. 12 years when executed as a deed.

Answer 105

The RICS provides a model form. The process must include a redress mechanism. Details of the policy should be issued to the client with the Terms of Business. It must be clear, quick, transparent and impartial and free of charge within the first stage. Names and contact details of the nominated investigating person must be stated. The complaint must be investigated within 28 days. All complaints, their progress and outcomes must be recorded. We must note the need to advise PI insurers of a complaint immediately. The process must have two stages as a minimum:- Stage 1 is where there needs to be consideration of the complaint by a senior member of the firm or the complaints handling officer. Stage 2 if the issue is not resolved, the complaint is referred to an independent third party with the authority to award redress. The complainant may be expected to contribute towards costs at this stage.

Answer 106

It is a consumer scheme designed to handle small issues that would be disproportionally expensive to take to court. If the scheme judges in favour of the complainant, it is binding. If it judges in favour of the firm, the complainant can escalate the matter to court. RICS firms must specify which redress scheme they want to use, it could be an ombudsman, arbitration or sometimes adjudication. If the complaint relates to a large amount of money or if the complainant wishes so, he can take the matter to court.

Answer 107

I would acknowledge receipt and I would forward it to my firms designated complaint handler, as per our complaint handling procedure, providing additional information as required. I would also highlight the importance of informing our Professional Indemnity insurance providers immediately.

Answer 108

This is a money protection scheme operated by the RICS. It contains provision for any member of the public to be reimbursed their direct loss of funds when using an RICS regulated firm. This is provided through an RICS insurance policy.

Answer 109

For the purpose of dual authorisation.

Answer 110

Members must undertake and record appropriate lifelong learning. On request by the RICS they must provide evidence that they have carried out the CPD to maintain and improve their levels of professional competence.

Answer 111

A minimum of 20 hours CPD must be achieved per calendar year, of which a minimum 10 hours must be formal. Members must undertake learning on the standards expected around RICS Ethics on a rolling 3-year period. All CPD’s must be recorded via the RICS on-line management system.

Answer 112

It must have a clear learning objective relevant to my role to count as CPD. Formal CPD can be classed as web based training with structured assessments, formal seminars, providing training to others where research and preparation is required. Informal CPD is classed as private reading, internal CPD’s and on the job shadowing.

Answer 113

My employer’s research & development team send us weekly digests of the relevant press and I request copies of articles of interest. I also read the RICS journals (Modus, Construction Journal, RICS regional magazine). I also keep up to date via the RICS website, Building Magazine, Estates Gazette and BCIS updates.

Answer 114

This is going to be specific to the candidate’s own reading. Be sure to have a couple of articles in mind that you are able to talk through with the assessors.

Answer 115

I am on the mailing list for several CPD providers. My employer’s research & development team send us weekly digests of the relevant press and I request copies of articles of interest. I also exchange industry articles and relevant information with colleagues. I follow updates on the RICS website and Construction Journals. I undertake regular web research on key topics relevant to my field of surveying.

Answer 116

I meet with my manager twice a year to review my career development plan and objectives. I build my CPD strategy around these objectives, current topics and personal interests. The candidate should try to explain their own personal objectives to address this question.

Answer 117

Professional Indemnity Insurance.

Answer 118

To provide financial cover in the event a client suffers financial loss as a result of a breach of professional duty e.g. neglect, errors or omissions.

Answer 119

The professional is protected from financial losses. The firm does not have to meet the claim from their own assets and resources.

Answer 120

They are able to recover their financial losses.

Answer 121

On a claims made basis.

Answer 122

The insurance policy that is in place at the time the breach is discovered is responsible for providing the indemnity, not the insurance policy in place when the breach was made.

Answer 123

The policy cover must be made on an ‘each and every’ claim basis. The RICS sets out the minimum levels of indemnity. The RICS sets out the maximum levels of uninsured excess. Run off cover must be in place for at least 6 years. The policy should include cover for past and present employees, directors and partners.

Answer 124

Keep full and detailed records of meetings and conversations. Record recommendations and advice given. Use proper letters of engagement, scope of services and terms of engagement. Don’t advise on a specialism outside your field of experience. Use RICS guidelines. Avoid poor management and excessive workloads.

Answer 125

For you to notify them and comply with any conditions & procedures set out in the insurance policy.

Answer 126

An estimate that is incorrect in itself will not provide the client with a right of redress. The client must demonstrate that the QS warranted the accuracy of the estimate or that it was incorrect due to a lack of reasonable skill and care. It could have been incorrect due to reasons outside their control for example market conditions or an item referred to in their exclusions.

Answer 127

Base the appointment on reasonable care and skill rather than fitness for purpose which is more onerous. If the client’s requirements are performance based, this may imply fitness for purpose. It is advisable to request a clause limiting the appointment to reasonable skill and care only. Run off cover must be in place. Execution of the appointment under hand will result in a reduced liability period of 6 years instead of 12.

TEXTBOOK ETHICS Flashcards

(153 cards)