RICS Guidance Note on Professional Ethics (2000)
'Firms should avoid price fixing, aggressive fee
cutting or collusion with competitors'
Fee's should be market based and agreed on an ad-hoc basis with clients
You can enter into further fee negotations with a prospective
client after submitting initial fee proposal, as long as you act in
a professional manner and don't enter into aggressive fee cutting with competitors
You may wish to vary your level of service however when renegotiating
Gifts, hospitality, bribes and inducements
Hospitality, promo and other business expendiuture which seeks to
genuinely promote and improve the key of a firm , is an accepted and
key part of doing business
However if accepting a gift, hospitality, payment, bribe or inducement could
give the impression that you or your firms impartiality may be compromised,
this is illegal and contradictory to the standards of an RICS member
With any question on this: consider:
Bribery Act 2010
Professional objectivity, opennes and transparency
Tax implications and money laundering
Employment contract details
came into force 1st July 2011
corporate criminal
offence of failing to
prevent bribery
Based on 6 principles
Proportionality
Top level commitment
Directors downwards
Risk Assessment
Only really get cash payments when
tenants sign up and for survey fees,
anything different to this we treat with
risk and reject
Due diligence
e.g. follow up references.
Communication
to ensure act is communicated and
trained internally and externally. All
companies need to train
Monitoring and review
Regular
All companies need to have written anti-bribery guidance and
associated training in place
No cash payments of more than £1,000
(Prob a top risk due 2 com-mon)
Firms are responsible unless
they can show they have
adequate procedures in place
Be weary of lavish
corporate entertainment
dressed up as hospitality
Reasonable and proportionate
hospitality is not prohibited and doesn't
constitute and offence e.g. tickets to a
major music/sporting event and taking
clients for meals as long as it is
accurately recorded in gift/hospitality
register
Always consider if your professional judgement
may be compromised if you accept and whether it
could be seen from somebody externally as a
bribe or inducement at the present time or in the
future
Illegal to give hospitality in
the hope of winning
business
Penalties
Policed by the SFO (Serious Fraud Office)
10 years imprisonment and/or unltd fine for individuals or companies
Pro bono work
e.g. if advice is for a friend or pro bono
e.g.free of charge for a charity, reject if pii
doesn't cover work carried out on a
personal basis
Money Laundering Regs 07
No cash payments in excess of £10,000 or 15,000 euros
Cilent Confidentiality
RICS Bye laws
Client confidentiality must be maintained for all client affairs
If a third party wants to access files you must
get your client's approval first unless it is a
statutory order
All old files should be hold for a minimum 6
years before disposal and secure destruction
If a surveyor overhears a confidential piece of info
regarding a party who is not his client e.g. cc'd in on
an email address, he cannot use this for his own
purposes. Record a note to firms data compliance
officer any any confidential material receivesd in
error should be securely disposed
CHP & ADR
Stage 1 (in-house) written complaint to complaints handling
officer, acknowledge receipt within 7 days, investigated within
28 days. Reason given before 28 days if full response won't be
available by then
Stage 2 (ADR - Third party resolution). Independent
redress scheme as approved by RICS Regulatory
board. We have chosen The Ombudsman Service :
Property.
There is also Property
ombudsman service and
RICS Dispute resolution
service
All complaints, progress and outcomes should be
recorded in a complaints log
Not the RICS job to get involved, will only
intervene if a member fails to respond to
complainant or prevents access to ADR
Negligence
Limitation Act 1980
Contract
6 years from date of breach is
contract or 12 years from the date of
breach if a deed
Tort
6 years from date of damage or 3 years from
date of knowledge of damage, subject to a 15
year long stop
Avoidance
Understand client's objectives and confirm
precise instructions in writing in TOE's
Check you are competent
Undertake in accordance with RICS standards
Make detailed file notes/photos etc
Keep up to date with market knowledge / legislation and
quality focused CPD
CPD
Formal - 10 hours
Structured learning with clear
objectives and outcomes
online training, courses
Informal - 10 hours
Any self managed learning related to professional role
private study, on the job, informal knowledge
sharing seminars
Min 20 hours per year
Ethical element once every 3 years
Record using CPD management system online or on app