RICS Rules Of Conduct 2021 PDF

RULES OF CONDUCT Rules of Conduct Global October 2021 ii IP RULES OF CONDUCT Global October 2021 Effective from 2 February 2022 Published by the Royal Institution of Chartered Surveyors (RICS) Parliament Square London SW...

RULES OF CONDUCT Rules of Conduct Global October 2021 ii IP RULES OF CONDUCT Global October 2021 Effective from 2 February 2022 Published by the Royal Institution of Chartered Surveyors (RICS) Parliament Square London SW1P 3AD www.rics.org No responsibility for loss or damage caused to any person acting or refraining from action as a result of the material included in this publication can be accepted by the authors or RICS. ISBN 978 1 78321 417 4 © Royal Institution of Chartered Surveyors (RICS) October 2021. Copyright in all or part of this publication rests with RICS. Save where and to the extent expressly permitted within this document, no part of this work may be reproduced or used in any form or by any means including graphic, electronic, or mechanical, including photocopying, recording, taping or web distribution, without the written permission of RICS or in line with the rules of an existing licence.  iii IP Contents Introduction  1 Rule 1  2 Rule 2  3 Rule 3  4 Rule 4  5 Rule 5  6 Appendix A: Professional obligations to RICS  7 RULES OF CONDUCT  1 IP Introduction The Rules of Conduct support positive change in the built and natural environments, through promoting and enforcing the highest ethical standards in valuation, the development and management of land, real estate, construction and infrastructure. The Rules of Conduct are based on ethical principles of honesty, integrity, competence, service, respect and responsibility. Under its Royal Charter, RICS is required to maintain the usefulness of the profession for the public advantage, and the practice of surveying is defined as including ‘securing the optimal use of land and its associated resources to meet social and economic needs’. Professional ethical practice by RICS members and firms provides a foundation for effective markets, pioneers better places to live and work, and is a force for positive social impact. Professional practice will often involve balancing competing interests and using values and ethical judgement to come to a decision about what is right. The five rules provide a structure for making ethical decisions about how to behave as a professional. Members must use their professional judgement in applying these principles to the situations they face in practice and firms must support individuals working for them to do so. The rules are primarily about professional conduct, but personal conduct may be relevant to the rules where it may damage public confidence in the profession. The Rules of Conduct apply to all members (as defined in Bye-Law 5.1) and firms regulated by RICS. References to ‘firms’ in this document means firms regulated by RICS. References to ‘clients’ in this document means anyone to whom a member or firm has agreed to provide a professional service. RICS members and firms operate around the world, and the Rules of Conduct apply to members and firms wherever they work or practise. We recognise that laws differ between jurisdictions and that firms and members must consider the legal obligations that apply to them. This document provides examples of behaviours that would indicate a member or firm had complied with the rule. These examples are not exhaustive. For all behaviours, RICS expects a member or firm to do what is reasonably possible to achieve the outcome described. Only serious breaches of the rules are likely to result in disciplinary action; minor breaches can be dealt with through self-correction or firms’ processes. RICS disciplinary processes are not intended to replace other processes for resolving fee disputes or compensating for poor service or mistakes. Members and firms (in particular, their responsible principal) should be prepared to explain their actions and how they have complied with the rules, even if they have not followed an example behaviour. Appendix A sets out the core professional obligations of members and firms to RICS. The Rules of Conduct are effective from 2 February 2022. RULES OF CONDUCT  2 IP Rule 1 Members and firms must be honest, act with integrity and comply with their professional obligations, including obligations to RICS. Example behaviours 1.1 Members and firms do not mislead others by their actions or omissions, or by being complicit in the actions or omissions of others. 1.2 Members and firms do not allow themselves to be influenced improperly by others (as a result of, for example, giving or receiving work referrals, gifts, hospitality or payments) or by their own self- interest. 1.3 Members and firms identify actual and potential conflicts of interest throughout a professional assignment and do not provide advice or services where a conflict of interest or a significant risk of one arises, unless they do so in accordance with the current edition of Conflicts of interest, RICS professional statement. 1.4 Firms have effective processes to identify actual and potential conflicts of interest, to enable appropriate decisions to be made on whether to accept work, and to keep records of decisions made about actual and potential conflicts of interest. 1.5 Members and firms providing advice and opinion in a professional context do so honestly and objectively based on relevant and reliable evidence, and firms have processes to ensure that directors, partners and employees do so. 1.6 Members and firms are open and transparent with clients about their fees and services. 1.7 Members and firms act to prevent others being misled about their professional opinion. 1.8 Members and firms do not take unfair advantage of others. 1.9 Members and firms protect confidential information and only use or disclose it for the purposes for which it was provided, where they have the necessary consent to do so or where required or permitted by law. 1.10 Firms keep client money safe and have appropriate accounting controls. 1.11 Members do not misuse client money and comply with controls intended to keep it safe. 1.12 Members and firms do not facilitate any financial crime including money laundering, tax evasion, bribery or corruption. Firms have effective processes to prevent directors, partners or employees from doing so. RULES OF CONDUCT  3 IP Rule 2 Members and firms must maintain their professional competence and ensure that services are provided by competent individuals who have the necessary expertise. Example behaviours 2.1 Members and firms only undertake work that they have the knowledge, skills and resources to carry out competently. 2.2 Members and firms supervise any employees undertaking work for them and ensure that these employees have the necessary knowledge, skills and resources to do their tasks competently. 2.3 Members and firms check that subcontractors have the necessary knowledge, skills and resources to do their tasks competently. 2.4 Members and firms reflect on the work they have undertaken and its impacts, and consider how they might apply what they have learned to their future work. 2.5 Members maintain and develop their knowledge and skills throughout their careers. They identify development needs, plan and undertake continuing professional development (CPD) activities to address them and are able to demonstrate they have done so. Firms encourage and support directors, partners and employees to maintain and develop their knowledge and skills, and check that they are complying with CPD requirements set by RICS. 2.6 Members and firms stay up to date and comply with relevant legislation, codes of practice and other professional and relevant technical standards. Firms ensure that their directors, partners and employees do so. RULES OF CONDUCT  4 IP Rule 3 Members and firms must provide good-quality and diligent service. Example behaviours 3.1 Members and firms understand clients’ needs and objectives before accepting any professional work. 3.2 Members and firms agree with clients the scope of the service to be provided and its limitations, and timescales for the work. 3.3 Firms inform clients that they are regulated by RICS and that they may need to disclose records to RICS where required for regulatory purposes. 3.4 Members and firms inform clients promptly and seek their agreement if it is proposed that any of the terms of engagement or estimated fees or costs be changed. 3.5 Members and firms undertake their work in a timely manner; with due care, skill and diligence, and in accordance with RICS technical standards. 3.6 Members and firms communicate to clients the material information on which their professional advice and opinion is based. 3.7 Members and firms communicate with clients and others clearly and in a way they can understand. 3.8 Members and firms ensure that any referral or introduction they make for a client is in the best interests of the client and inform clients about any financial or other benefits to the member or their firm from a referral or introduction. 3.9 Members and firms keep proper records of their work and decisions in enough detail to allow them to answer questions from clients and to allow their work to be audited for quality assurance or regulatory purposes. 3.10 Members and firms, when advising clients about projects, encourage solutions that are sustainable in that they minimise harm and deliver balanced economic, social and environmental benefits. 3.11 Members and firms understand the risks and benefits of using relevant technology. 3.12 Members and firms check that all data used is accurate and up to date, is kept securely, and that they have proper legal rights to use it and, where required, share it. 3.13 Firms have effective quality assurance processes for their work. RULES OF CONDUCT  5 IP Rule 4 Members and firms must treat others with respect and encourage diversity and inclusion. Example behaviours 4.1 Members and firms respect the rights of others and treat others with courtesy. 4.2 Members and firms treat everyone fairly and do not discriminate against anyone on any improper grounds, including age, disability, gender reassignment, marriage or civil partnership, pregnancy or maternity, race, religion or belief, sex or sexual orientation. 4.3 Members and firms do not bully, victimise or harass anyone. 4.4 Firms check that supply chains do not involve modern slavery or other abuses of the workforce. 4.5 Members and firms report abusive labour practices to proper and recognised authorities if they become aware of, or suspect, them. 4.6 Members and firms work cooperatively with others. 4.7 Members and firms develop an inclusive culture in their workplaces, support equal access and opportunity for all, and identify and address unconscious bias. RULES OF CONDUCT  6 IP 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. Example behaviours 5.1 Members and firms question practices and decisions that they suspect are not right, and raise concerns with colleagues, senior management, clients, RICS or any other appropriate person, body or organisation where they believe in good faith that it is necessary to do so. Firms provide processes to allow and support individuals within the firm to raise concerns with senior management. 5.2 Members and firms support directors, partners, employees, colleagues or clients who have acted in good faith to report concerns. 5.3 Members and firms ensure that public statements made by the firm, or in which members are (or could be) identified as members of the profession, do not undermine public confidence in the profession. 5.4 Members and firms respond to complaints made against them promptly, openly and professionally. 5.5 Members and firms do not dissuade complainants from approaching an alternative dispute resolution provider, RICS or any other regulatory body. 5.6 Members and firms cooperate with investigations into complaints or concerns, and provide information where it is reasonably requested and they can do so lawfully. 5.7 Members consider the effect that any health conditions may have on their competence or ability to undertake professional work, and inform management or clients where they require reasonable adjustments or are unable to continue to undertake work competently. 5.8 Members and firms manage their professional finances responsibly. 5.9 Members and firms take appropriate action when they consider that the rules have been breached, and report suspected significant breaches of the Rules of Conduct by themselves or others to RICS. RULES OF CONDUCT  7 IP Appendix A: Professional obligations to RICS This appendix sets out the core professional obligations for members and firms. Additional professional obligations are found in the mandatory requirements of RICS professional statements relevant to a member or firm’s practice. The following professional obligations to RICS are mandatory for RICS members. 1. Members must comply with the CPD requirements set by RICS. 2. Members must cooperate with RICS. 3. Members must promptly provide all information reasonably requested by the Standards and Regulation Board, or those exercising delegated authority on its behalf. The following obligations are mandatory for RICS-regulated firms. 1. Firms must publish a complaints-handling procedure, which includes an alternative dispute resolution provider approved by RICS, and maintain a complaints log. 2. 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. 3. 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. 4. Firms must cooperate with RICS. 5. Firms must promptly provide all information reasonably requested by the Standards and Regulation Board, or those exercising delegated authority on its behalf. 6. 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. 7. Firms must report to RICS any matter that they are required to report under the Rules for the Registration of Firms. RULES OF CONDUCT Delivering confidence We are RICS. Everything we do is designed to effect positive change in the built and natural environments. Through our respected global standards, leading professional progression and our trusted data and insight, we promote and enforce the highest professional standards in the development and management of land, real estate, construction and infrastructure. Our work with others provides a foundation for confident markets, pioneers better places to live and work and is a force for positive social impact. Americas, Europe, Middle East & Africa [email protected] Asia Pacific [email protected] United Kingdom & Ireland [email protected] rics.org