M005 Rules, Ethics and Professional Practice

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Created by alison_patey0437 almost 7 years ago


Conduct, rules, ethics and professional practice M005 Mind Map on M005 Rules, Ethics and Professional Practice, created by alison_patey0437 on 05/04/2013.

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M005 Rules, Ethics and Professional Practice
1 Background to RICS
1.1 created in 1868
1.1.1 present structure under Agenda for Change 1998
1.2 Membership
1.2.1 111,500 members at present FRICS = 20,000 MRICS = 72,000 AssocRICS = 2,500 Trainees = 17,000
1.3 How to become a FRICS
1.3.1 evidence of 3 fellow characteristics 5yr+ at MRICS Leadership role Professional/ technical achievement academic achievement raising profile of RICS
1.3.2 nomination from FRICS person
1.3.3 portfolio of professional achievement to support the application is req. 2 inc your CPD
1.4 Governance structure
1.4.1 TOP = Privy council (grants & award royal charter) MIDDLE = Governing Council (manage & strategy of RICS) Reg Board Audit Comittee Manage board 70 memebers of Gov Counil (66% elected & 50% is UK membership)
1.5 UK Structure
1.5.1 20 professional grps - e.g. PM, BS, Commercial Agency
1.5.2 Each pro grp has eleccted board
1.5.3 4 national associations
1.5.4 10 regional boards
1.5.5 Local Associations
1.6 High level leadership
1.6.1 RICS President 12/13 Allan Collett FRICS
1.6.2 President Elect Michael Newey FRICS
1.6.3 Chief Exectutive Officer Sean Tompkinson
2 Role of RICS
2.1 the RICS is 1 of the most respected and high profile global standards & membership org 4 pro involved in land, property, construction, environmental issues'.
2.2 3 main roles
2.2.1 Maintain highest STANDARDS
2.2.2 PROTECT consumers through REGULATION & pro standards
2.2.3 leading SOURCE info & independent ADVICE on land property, construction and assoc environ issues
3 RICS Royal Charter & Bye-laws 2008
3.1 completed update version in 2008
3.2 'a modern corporate gov model with a more business-like approach & clear accountability
3.3 Bye-laws
3.3.1 rules 4 regs of firms
3.3.2 use of designations
3.3.3 payment of subscriptions
3.3.4 composition of gov council
3.3.5 all members b liable 2 disciplianary action if they bring conduct of the RICS in 2 disrepute or r found 2 b seriously pro incompetent
3.4 Carlsberg report 2005 & chg 2 regs 2007
3.4.1 recommendations for chng RICS develop structure 2 separate reg functs & representational functs est. CONDUCT BOARD 2 operate disciplinary structure with equal member/ lay representative with a lay chairman REGULATE FIRMS & MEMBERS
4 RICS Professional & Ethical Standards 2012 = CORE VALUES
4.1 Act with INTEGRITY
4.1.1 be honest & straightforward in all u do
4.2 Always provide a high standard of SERVICE
4.2.1 ensure ur client or others to whom u have a professional responsibility receives the best possible advice, support/ performance of the terms of engagement you have agreed
4.4 treat others with RESPECT
4.5.1 be accountable 4 ur actions
4.6 Concequences
4.6.1 Bye-Law 5.1 all members must behave in a manner beffting the RICS
4.6.2 RICS confidential HOTLINE 4 ethical issues
4.6.3 serious deviation from standard = diciplinary action
5 Rules of Conduct 2007, amended in 2012
5.1.2 ETHICAL BEHAVIOUR members = act with integrity/ avoid conflicts/ actions inconsistent with professional obligations
5.1.3 COMPETENCE members = carry out work with dure care/ skill/ diligence/ regard for tech stand expected of them
5.1.4 SERVICE members = carry out wk in a timely manner/ proper regards 4 stand service & customer care ext of them
5.1.5 CONTINUED PROFESSIONAL DEVELOPMENT (CPD) members = plan/ undertake/ record/ evaluate CPD + provide info 2 RICS on demand
5.1.6 SOLVENCY members = ensure finances managed in personal + professional lives
5.1.7 INFORMATION members = submit info 2 reg board as req.
5.1.8 COORPORATION members = co-operate fully with RICS staff + person appointed by Reg Board
5.1.9 Generally Members & Firm Rules introduced from Carlsberg report in 2007 Aims of Rules shorted/ principle based/ plain language clearer arms length regulation business friendly 5 PRINCIPLES OF BETTER REGULATION (PACTT) PROPORTIONALITY ACCOUNTABILITY CONSISTENCY TARGETING TRANSPARENCY 2012 CHANGE Firms required ADR mechanism in CHP
5.2.1 Generally 3 benefits for FIRMS CONFIDENCE PROFESSIONALISM SECURITY Regulation is the 'GOLD STANDARD' of quality for clients REGULATED FIRMS 50%+ partners/ directors RICS member. If >50% can still volunteer for RICS regulation if there are RICS members No RICS members = NON REGULATION CONTACT OFFICER individual who will be POC with RICS/ regulatory matters INFO REQ. FOR REGULATION (annually) Type of business & staffing details Statutory regulated activities such as for financial services nature of clients CHP details & records PII details whether the firm is holding clients money Help sheet for registering Firm disputes heard by Regulatory Panel
5.2.2 CONDUCT FOR BUSINESS PROFESSIONAL BEHAVIOUR As member rule COMPETENCE As member rule SERVICE As member rule TRAINING & CONTINUED PROFESSIONAL DEVELOPMENT (CPD) Put in place procedures 2 ensure staff r properly trained & competent 2 do their work COMPLAINTS HANDLING a firm shall operate a CHP procedure/ maintain logs/inc ADR mechanism approved by the reg board. CLIENTS MONEY Firms shal preserve security of clients money entrusted to its care in the course of its business or practice PII ensure all previous/current wrk is covered by adequate and appropriate PII cover that meets standards of reg board PAPPA/CANT / SING/ CPD/ CATS/ CRY/ PERSISTENTLY
5.2.3 FIRM ADMINISTRATION ADVERTISING promote its pro services in a truthful/responsible manner SOLVENCY ensure finances r managed ARRANGEMENTS 2 COVER THE INCAPACITY/ DEATH OF A SOLE PRACTITIONER firms with a sole principle should have arrangements in event of death incapacity/ extended absense USE OF DESIGNATIONS firms reg for registration 4 regulation must display it on its business literature INFO TO RICS as Member rule CO-OPERATION as member rule AFTER/ SOME/ ARRANGEMENTS/ UR/ INFO/ CLEARED
6.1 published from 2007 2 support RULES OF CONDUCT
6.2 Members
6.2.1 CPD/ advice 4 sole practitioners/
6.3 Firms
6.3.1 Clients money/ Training for firms/ registration 4 firms/ CHP
6.4 Policy
6.4.1 PII/ Use of RICS designation/ RICS diciplinary procedures
7.1.1 50 published e.g. Asbestos and implications 2 surveyors and clients/ conflict avoidance and dispute resolution
7.2.1 Code of Measuring Practice 6h Ed.
8 Disciplinary Procedures
8.1 Self regulation by RICS
8.2 changes in 2007 following setting up reg board
8.3 3 levels of procedure
8.3.1 1. Action by HEAD OF REGULATION
8.4.1 INITIAL INVESTIGATION 1st step - formal investigation by Head of Regulation 2nd Head of regulation can trigger 1 of 3 actions 1. serve a FIXED PENALTY Breaches to rules regarding INFORMATION 2 RICS FIXED PENALTY - depending on delay lenght/ member or firm delay up to 28 days: Member = £150; Firm = £300 2. Make a CONSENT ORDER low level breaches e.g. members accounts reg that can b corrected writtendoc - states terms which member/firm must TAKE or DISSIST action in a TIME PERIOD RICS may ask member/firm 2 undertake some training member ca be refferred to a disciplinary panel if breach of order 3. refer matter to DISCIPLINARY PANEL 4 consideration under DISCIPLINE RULES more serious breaches Panel sit in public. considered all factors when making a decision 50% membership of panel are lay members (non RICS)
8.5 Penalties available
8.5.2 Impose an UNLIMITED AMOUNT / BREACH (appropriate to offense)
8.5.3 Impose conditions upon future continued RICS regulation
8.5.6 Require COSTS/EXPENSES 2 b paid
8.5.7 Require PUBLICATION of results of hearing in RICS MAGS/WEBSITE & LOCAL NEWSPAPERS
8.6 Appeals
8.6.1 Appeal Panel considered in relation to the 3 levels of discipline fixed penalties/ disciplinary panels/ registration panels
8.6.2 Appeal board considers new & old evidence - can allow appeals and vary the penalty prev upheld
8.6.3 50% are lay members
9.1 RICS guidance note on professional ethics - firms should avoid PRICE FIXING. AGGRESSIVE FEE CUTTING/ COLLUSION with competitors
9.2 no FIXED scale charges 4 surveyors but MARKET BASED & agreed on ad-hoc with client
9.3 can enter further fee negotiation with client after you have submitted your initial fee proposal.
10.1 Hospitality to genuinely promote & improve a firms image = acceptable
10.3 DON'T be in a position where it compromises the standards expected of the RICS
10.4 BRIBERY ACT 2010
10.4.1 1ST July 2011 - corporate criminal offense of failing to prevent bribery
10.4.2 Enter text here
11 CPD
11.1 Requirement
11.1.1 July 2009 - members shall undertake CPD
11.1.2 20hrs+
11.2 Planning
11.2.1 identify future learning objectives
11.2.2 Plan/ carry out/ record annual programme of learning
11.2.3 2013 CHANGE - record details on RICS website
11.3 Quantity & Quality
11.3.1 outcome is more important than no. of hrs
11.4 Content
11.4.1 Formal/ training/ personal & informal further edu/ charity work
11.5 Records
11.5.1 records of CPD kept each CPD - subject/ method of learning/ no. hrs/ objective/ outcome
11.5.2 each CPD is a min of 1/2 hr
11.5.3 on request provide evidence to RICS
11.6 Changes 2013
11.6.1 every 3yrs - needs an ETHICAL CPD
11.6.2 10 hrs Formal out of 20hrs
12 Starting a new practice
12.1 RICS Compliance
12.1.1 Inform RICS of new practice by completing FIRM DETAILS FORM
12.1.2 Appoint CONTACT OFFICER for all RICS correspondance
12.1.3 Register with RICS for REGULATION OF FIRMS by REG BOARD
12.1.4 Arrange PII
12.1.5 Procedure for MEMBER ACCOUNTS REG'S for handling CLIENTS MONEY
12.1.6 Set up staff TRAINING PLAN
12.1.7 RICS approval 4 CHP
12.1.8 Set up COMPLAINTS LOG
12.1.9 Appoint CHP officer (elect a surveyor in another practice if sole practice)
12.1.10 Obtain a LOGO KIT from RICS for use in producing business stationary
12.1.11 make arrangements 4 succession/future running of business if sole practitioner
12.2 Statutory Compliance
12.2.1 Disclose Business name BUSINESS NAMES ACT 1985 & COMPANIES ACT 1985
12.2.3 Finance services compliance FINANCIAL SERVICES & MARKETING ACT 2000
12.2.4 BRIBERY ACT 2010
12.2.5 Appoint Money Laundering Reporting Officer MONEY LAUNDERING REGULATION 2007
12.2.6 H&S compliance H&S AT WORK ACT 1974
12.2.7 Fire safety compliance REGULATORY REFORM (FIRE SAFETY) ORDER 2005
12.2.8 Asbestos register CONTROL OF ASBESTOS REGULATION 2012
12.2.9 Register for data protection DATA PROTECTION ACT 1998
12.2.10 Inform HMRC for VAT & TAX registaion VAT threshold is £77k/annual turnover
12.3 Closing down a practice
12.3.1 retirement/cease trade inform RICS Ensure clients r informed + handover arrangement made return monies held by clients to their own accounts inform insurers & procure PII run off cover for a min of 6yrs & £250k
13 Handling Clients Money
13.1 2 help sheets
13.2 3 main areas of good practice
13.2.1 obligation 2 client
13.2.2 obligation 2 keep accurate records
13.2.3 reporting obligations
13.3 keep client accounts separately & clearly identifiable
13.4 name account after client
13.5 clients money AVAILABLE ON DEMAND
13.6 agree payment of interest
13.7 Account must always b in credit
13.8 Monies paid within 3 working days of reciept
13.9 signatories agreed + 2 signatures
13.10 Annual Audit by RICS accountant
13.11 RICS MONEY PROTECTION SCHEME 4 claims up 2 £50k from clients
13.12 RICS REG REVIEW visits of inspection can b undertaken by RICS 3yrly
14 PII
14.1 mandatory 4 surveyor in practice
14.2 protect surveyors/client/3rd parties from negligence claims when DofC if breached
14.3 Help Sheet 2011
14.4 3 min levels on turnover
14.4.1 £100k/less = £250k cover
14.4.2 £101k to £200k = £500k cover
14.4.3 £201k+ = £1m cover
14.5 new firm = cover on est. turnover
14.6 certificate sent 2 RICS annually
14.7 Min 6yr runoff cover of £250k for past & present employees required but RICS recommends up 2 15yrs
14.8 PII cover needed 4 'pro bono'/ friends
14.9 RICS assigned risk pool 4 members who cannot arrange cover
14.10 RICS low earners scheme to ritired/p. time employees
14.11 early notification 2 firm insurers when potential claims arise
14.12 RICS runs a MEMBERS SUPPORT SERVICE (MSS) for members facing claims for wrks carried out by an emp who has gone in 2 administration. offers help & advice
15.1 1st July 2011
15.2 aim = reduce bribery in UK business + abroad + strenghten extg bribery laws
15.4 COMPANIES = responsible 4 employees unless they can show that they had adequate procedures/policies
15.5 lavish entertainment can be seen as bribery. illegal to give hospitality in hope of winning business
15.6 Gov guidance 2011 - offering client reasonable & proportionate hospitality = okay e.g. ticket to events/meals but have 2 b RECORDED IN GIFT REGISTER
15.7 BRIBERY ACT 2010 - criteria 2 prove that they have taken steps 2 prevent bribery = IDEN RISK/ TRAINING/POLICIES/ REVIEWS
15.8 Policed by serious fraud squad
15.9 penalties = 10yrs prison/unlimited fines
16 CHP
16.1 Generally
16.1.1 Mandatory for all terms of engagement
16.1.2 Help sheet 2012
16.1.3 practicies written procedures APPROVED BY RICS
16.1.4 notify PII insurers if complaint made/lead 2 claim
16.1.5 CHP details given 2 client at same time as terms of business
16.1.6 complaints log maintatined
16.1.7 include ADR procedure for CHP
16.2 Procedure
16.2.1 STAGE ONE Details of CHP issued when firm receives a complaint free of charge 2 complainant + include 3rd party redress details of nom. person 2 investigate complaint (CHP officer) complaint must be in writing procedures and timescales r 2 b followed 4 investigation of the complaint should b recorded complaint ack. in 7 days + investigated within 28days
16.2.2 STAGE TWO if complaainant not happy - 2nd stage of CHP involves using REDRESS scheme firm chosen 2 use. name of relevant redress mech must b provided 2 the complainant
16.2.3 OTHER INFO RICS ONLY get involved if member FAILS 2 RESPOND/ prevents party gaining access 2 redress mech. SOLE Practitioner has 2 NOMINATE a CHP Officer from another firm Approved redress mech = OMBUDSMAN SERVICES: PROPERTY & RICS DISPUTE RESOLUTION SERVICE
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