Ethics, Rules of Conduct & Professionalism

What is the meaning of the RICS Motto?

‘Est Modus in Rebus’ which is Latin for ‘There is measure in all things’

What is the mission statement of the RICS?

• Qualify members to offer highest standard of service

• Promote & enforce standards

• Provide solutions to build environment challenges through professional expertise

When was the RICS founded?

1868

How is the RICS structured?

• Founded 1868

• Royal Charter granted by the Privy Council in 1881

• Regulated by The Bye-Laws

• Managed by The Governing Council

• The Regulatory board, audit committee, and management board are beneath the Governing Council

What are the RICS’ 5 principles of better regulation?

• Proportionality

• Accountability

• Consistency

• Targeting

• Transparency

What is the difference between RICS ethics and rules?

• Ethics = moral values

• Rules of conduct = framework we work to

How many Global Professional and Ethical standards are there?

• Up until 1st Feb 2022 = 5

• From 2nd Feb 2022 = consolidated within the New Rules of Conduct 2022

What are the New Rules of Conduct?

• Rule 1: be honest, act with integrity, comply with professional obligations

• Rule 2: maintain professional competence, ensure services are provided by those with necessary expertise

• Rule 3: provide good quality services

• Rule 4: treat others with respect, encourage diversity and inclusion

• Rule 5: act in the public interest, prevent harm, maintain public confidence

What are the professional obligations of members?

• Comply with CPD requirements: 20hrs with 10hrs being formal

• Cooperate with RICS

• Provide all information requested by the Standards and Regulations Board

What are the professional obligations of firms?

• Publish a complaints handling procedure and, maintain a complaints log

• Have appropriate Professional Indemnity cover

• Make appropriate arrangements for continuity in the case of incapacity, death or absence

• Cooperate with RICS

• Provide all information requested by the Standards and Regulations Board

• Display on business literature that they are regulated by RICS

• Report to RICS any matter required to report under the Rules for the Registration of Firms

Why does RICS have Rules of Conduct?

• To provide framework we can all work to, to enable a set level of service

• Useful professional guide for other members

Your brother in law is a chartered surveyor. You find out that he is working outside the RICS Rules of Conduct. What do you do?

• Verify the facts, confront him reminding him of his RICS duties

• Inform RICS specifying my relationship to the person and any corrective action he is committed to put in place

In the case of a breach of a rule of conduct, what is the procedure?

• Not all will give rise to proceedings

• Formal investigation by the Head of Regulation RICS is the first step

• RICS can request information, visit and inspect

• Members must cooperate fully with all enquiries

How can a disciplinary proceeding be triggered?

• Complaint made to RICS

• Allegation by a Client or 3rd party

• Information received or established by RICS

What 3 actions can be imposed after the end of the investigation stage?

• Fixed penalty

• Consent order

• Disciplinary panel

What are fixed penalties?

A fine by the RICS

What are consent orders?

• Written agreement between RICS and member/firm concerning a disciplinary issue

• Can require the member to take corrective actions, restrain from taking certain actions for a period or time, and may require them to pay a fine or costs

When is a disciplinary panel applicable?

• Serious breaches of conduct

• Held in public

• Burden of proof is on the RICS

• Balance of probabilities approach will be used

What sort of breaches would expulsion be suitable for?

• Gross, persistent or willful failure to comply with code of conduct

• Fraud, dishonesty, conviction of criminal offence, gross incompetence, discrimination, misappropriation of Clients money

What procedures must you follow if you are starting up a new practice?

• Contact RICS for guidance and company start up pack

• Register for regulation

• Appoint contact officer for RICS communications

• Prepare complaints handling procedure

• Obtain Professional Indemnity Insurance

• Abide by Rules of Conduct for Firms

• Use ‘Regulated by RICS’ on all literature

What insurances would you need if you were starting up your own firm?

• Professional Indemnity Insurance

• Employers Liability

• Public Liability

• Building Insurance for Office

What sort of information do firms need to send to RICS annually?

• An annual return

• Failure to do so leads to a fixed penalty

• It includes: type of business, nature of clients, training provision, complaints handling procedures, PI insurance details, details of firm holds Clients money

What processes do regulated firms need to put in place when handling clients money?

• Preserve the security of the clients money

• Segregation of duties for employees

• Principal oversees the client money

• Principles cannot override controls

• Money processed by competent staff

• Systems and data must be secure

• Client money kept separate and identifiable

• Client must always have access to funds

• Advise Client on bank details

• Account must not be overdrawn

• Maintain client ledgers and provide a running balance

What are the different types of client money accounts?

• General accounts = more than 1 client

• Discrete account = single names client

What is meant by the term negligence?

• Failure to provide the duty of care that is owed to the client

• Damages or professional indemnity insurance to be claimed

Tell us about the Merrit V Babb case law?

• 2001

• Highlights the importance of run-off cover

• Surveyor was sued for negligence by former client

• Surveying firm was no longer in existence so the individual was pursued for damages successfully

• Ensure run-off cover is in place for all previous employees

What limitation periods are associated with underhand and deed forms of contract?

• Executed under hand = 6 years

• Executed as a deed = 12 years

What must a complaints handling procedure include?

• RICS provide a model form

• Must include a redress mechanism

• Details of the policy issued to the Client

• Clear, transparent, impartial and free of charge

• Names and contact details of the nominated investigating person

• Must be investigated within 28 days

• Must be recorded

• Advise PI insurers of a complaint immediately

• Stage 1: consideration

• Stage 2: if not resolved, referred to an independent 3rd party

What is an independent redress scheme?

• Scheme designed to handle small issues that would be too expensive to take to court

• Judge favour complainant: binding

• Judge favour firm: can escalate to court

• Can use ombudsman, arbitration, adjudication

What do you do if you receive a letter of complaint?

• Acknowledge receipt and forward to firms complaint handler

• Follow complaint handling procedure

• Inform PI insurers immediately