RICS Rules of Conduct Overview
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Questions and Answers

A firm identifies a potential conflict of interest. According to RICS rules, what is the most appropriate first step?

  • Proceed with the assignment but disclose the conflict to the client.
  • Ignore the conflict if it is not deemed to be detrimental to the client.
  • Assess if the risk is significant and determine if they can continue according to the current RICS guidance. (correct)
  • Immediately withdraw from the assignment to avoid any risk.

    • A member is offered an expensive gift by a client. What should the member do according to RICS conduct rules?

  • Accept the gift, while disclosing it to fellow members in the firm.
  • Refuse the gift, to prevent being improperly influenced. (correct)
  • Accept the gift, but document it within the firm's records.
  • Accept the gift, as it's a normal business practice.

    • Which action best demonstrates a firm's commitment to preventing financial crime?

  • Publicly declaring the firms commitment to anti financial crime measures.
  • Creating effective processes to prevent financial crime by directors, partners and employees. (correct)
  • Using external auditors to identify financial crime within the firm.
  • Ensuring partners personally manage all client funds.

    • A member discovers a mistake in a professional opinion, which was already provided to a client. What should be the member's immediate course of action?

    <p>Act to prevent others being misled about their professional opinion.</p> Signup and view all the answers

    A firm is asked to complete work which they lack the relevant expertise or resources to deliver. What should the firm do according to RICS rules?

    <p>Only undertake work they have the knowledge, skills and resources to carry out competently.</p> Signup and view all the answers

    A member is aware of their own conflicts of interest, what must they do?

    <p>Not provide any related advice or services unless in accordance with the current edition of Conflicts of interest, RICS professional statement.</p> Signup and view all the answers

    What best describes a measure that promotes transparency with clients regarding their fees and services?

    <p>Being open and clear about how their fees are structured, and the services to be provided.</p> Signup and view all the answers

    A member uses a client's confidential information for their own purposes without consent, when is this permitted?

    <p>When required or permitted by law.</p> Signup and view all the answers

    What is the primary responsibility of members and firms regarding their employees' competence?

    <p>To supervise employees and ensure they have the necessary knowledge, skills, and resources.</p> Signup and view all the answers

    According to the provided rules, what needs to be checked about subcontractors before they are assigned to work?

    <p>Whether they have the necessary knowledge, skills, and resources to do their tasks competently.</p> Signup and view all the answers

    What does the principle of 'reflection' in professional practice involve?

    <p>Reflecting on work undertaken and considering how lessons learned can be applied in the future.</p> Signup and view all the answers

    What is the primary focus of Continuing Professional Development (CPD) for members?

    <p>Maintaining and developing professional knowledge and skills.</p> Signup and view all the answers

    What actions are firms expected to take regarding their employees' compliance with CPD requirements?

    <p>To encourage and support them and check they are complying with requirements.</p> Signup and view all the answers

    What is emphasized regarding updating knowledge on legislation and standards?

    <p>Members and firms must stay up to date and comply with them.</p> Signup and view all the answers

    Prior to accepting professional work, what is an action that a member should take?

    <p>Understand clients’ needs and objectives.</p> Signup and view all the answers

    What must members and firms do if they propose changes to the terms of engagement or estimated fees?

    <p>Inform clients promptly and seek their agreement.</p> Signup and view all the answers

    What is essential for members and firms regarding the information on which their advice is based?

    <p>To communicate the material information to clients.</p> Signup and view all the answers

    What should members ensure when making a referral for a client?

    <p>That the referral is in the best interests of the client.</p> Signup and view all the answers

    What is one requirement for the data members and firms use according to the rules provided?

    <p>To check that the data used is accurate and up to date, is kept securely, and that they have proper legal rights to use it.</p> Signup and view all the answers

    Which of the following is one of the diversity and inclusion requirements for members and firms?

    <p>They should treat everyone fairly and not discriminate on any improper grounds.</p> Signup and view all the answers

    What action should members and firms take if they become aware of, or suspect, abusive labor practices in their supply chain?

    <p>To report them to the proper and recognized authorities.</p> Signup and view all the answers

    What is the requirement for members and firms regarding complaints?

    <p>To respond to complaints promptly, openly and professionally.</p> Signup and view all the answers

    If members have health conditions potentially impacting their competence, what should they do?

    <p>Inform management or clients where they require reasonable adjustments or are unable to continue to undertake work competently.</p> Signup and view all the answers

    What must firms do regarding their professional work in the event of incapacity or death of the sole principal?

    <p>Make appropriate arrangements for their professional work to continue</p> Signup and view all the answers

    Which of the following is NOT a mandatory professional obligation for RICS members?

    <p>Publish a complaints-handling procedure</p> Signup and view all the answers

    What is a requirement that firms must fulfill regarding complaints?

    <p>Maintain a complaints log</p> Signup and view all the answers

    Which obligation requires members to provide information to the Standards and Regulation Board?

    <p>Members must promptly provide all requested information</p> Signup and view all the answers

    Which statement about the professional obligations of firms is incorrect?

    <p>Firms do not need to report to RICS</p> Signup and view all the answers

    Study Notes

    RICS Rules of Conduct

    • Rule 1: Honesty and Integrity: Members and firms must be honest, act with integrity, and comply with RICS obligations. This includes not misleading others, refusing improper influence (gifts, referrals, etc.), identifying and managing conflicts of interest, having processes to identify conflicts and record decisions, providing honest and objective advice, being open about fees, preventing others being misled, avoiding unfair advantage, protecting confidentiality (with consent or legal permission), keeping client money safe and having appropriate accounting, and not facilitating financial crime.

    RICS Rules of Conduct - Rule 2: Professional Competence

    • Rule 2.1: Only undertake work with necessary skills, knowledge, and resources.
    • Rule 2.2: Supervise employees to ensure they have necessary knowledge, skills, and resources for their tasks.
    • Rule 2.3: Check subcontractors have necessary knowledge, skills, and resources.
    • Rule 2.4: Reflect on work undertaken, and apply learnings to future work.
    • Rule 2.5: Maintain and develop knowledge and skills through CPD activities, and demonstrate completion. Encourage and support employees to do the same, checking compliance with RICS CPD requirements.
    • Rule 2.6: Stay up-to-date with legislation, codes of practice, and relevant technical standards. Firms must ensure their personnel do the same.

    RICS Rules of Conduct - Rule 3: Quality and Diligence

    • Rule 3.1: Understand clients' needs and objectives before accepting work.
    • Rule 3.2: Agree scope and limitations, and timescales for work with clients.
    • Rule 3.3: Inform clients of RICS regulation and disclosure requirements.
    • Rule 3.4: Promptly inform and get client agreement if terms of engagement, fees, or costs change.
    • Rule 3.5: Complete work timely, with care, skill, and diligence, and in accordance with RICS technical standards.
    • Rule 3.6: Communicate material information upon which professional advice is based.
    • Rule 3.7: Communicate clearly and understandably to clients and others.
    • Rule 3.8: Inform clients about any financial or other benefits for referrals.
    • Rule 3.9: Keep proper records for client queries and audits.
    • Rule 3.10: Encourage sustainable solutions minimizing harm and maximizing balanced economic, social, and environmental benefits.
    • Rule 3.11: Understand risks and benefits of relevant technology.
    • Rule 3.12: Ensure data accuracy, security, legal rights to use and share.
    • Rule 3.13: Have effective quality assurance processes.

    RICS Rules of Conduct - Rule 4: Respect and Inclusion

    • Rule 4.1: Respect others' rights and treat others with courtesy.
    • Rule 4.2: Treat everyone fairly without discrimination based on protected characteristics.
    • Rule 4.3: Avoid bullying, victimization, or harassment.
    • Rule 4.4: Ensure supply chains are free of modern slavery and abuses.
    • Rule 4.5: Report abusive labor practices to relevant authorities.
    • Rule 4.6: Work cooperatively with others.
    • Rule 4.7: Develop inclusive workplaces, supporting equal access and opportunity, and addressing unconscious bias.

    RICS Rules of Conduct - Rule 5: Public Interest and Responsibility

    • Rule 5.1: Question questionable practices and decisions, raising concerns to appropriate parties. Firms must have processes supporting concern-raising.
    • Rule 5.2: Support those acting in good faith to report concerns.
    • Rule 5.3: Ensure public statements do not undermine public confidence in the profession.
    • Rule 5.4: Respond to complaints promptly, openly, and professionally.
    • Rule 5.5: Not dissuade complainants from ADR or regulatory bodies.
    • Rule 5.6: Cooperate with investigations and provide lawful information.
    • Rule 5.7: Consider health conditions' impact on competence, informing management or clients about adjustments or work limitations.
    • Rule 5.8: Manage professional finances responsibly.
    • Rule 5.9: Take action for rule breaches, reporting significant breaches to RICS.

    RICS Professional Obligations

    • Members: Comply with RICS CPD requirements, cooperate with RICS, and promptly provide information to the Standards and Regulation Board.
    • RICS-regulated Firms: Publish a complaints procedure, maintain a complaints log, have adequate professional indemnity, ensure continuity of work for sole principals, cooperate with RICS, promptly provide information to the Standards and Regulation Board, display RICS regulated designation, and report to RICS.

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    Description

    This quiz covers the essential aspects of the RICS Rules of Conduct, focusing on the importance of honesty, integrity, and professional competence. Understand the obligations members and firms must uphold in their professional practices. Explore how these rules aim to maintain high standards in the profession.

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