Ethics, Rules of Conduct and professionalism
| Question | Answer |
|---|---|
| What is RICS? | RICS is a Royal Charter body. The Royal Charter requires RICS to act in the public interest. Under the Royal Charter, RICS’ governing body is the Governing Council, which is responsible for approving RICS strategy and vision, overseeing the effective delivery of the strategy’ as well as standards and regulation. Governing Council is also responsible for approving changes to RICS’ constitution. Governing Council is supported by the Executive Board and expert governance bodies populated by active RICS members, RICS employees and independent non-executives. |
| What are the market sectors covered by RICS? | Construction, Building surveying, dispute resolution, land, real estate, valuation. |
| RICS is present in how many countries? | More than 140 countries. |
| How many members are there in RICS? | Over 130,000 members and candidates |
| What is the motto of the RICS? | Est modus in rebus’ – there is measurement in all things |
| What is the role of the RICS? | – Regulate and promote the profession – Maintain the highest educational and professional standards – Protect clients and consumers through a strict code of ethics and professional standards – Provide impartial advice, analysis and guidance |
| What is the RICS’ mission statement? | To advance and enforce standards in land, property, and the built environment and to promote the usefulness of the profession for public good |
| What are RICS five principles for better regulation? | The Rules focus on our regulatory goals and adopt the five principles of better regulation: • Proportionality. • Accountability. • Consistency. • Targeting. • Transparency. |
| What is RICS Bye-laws? | Rules and regulations applicable to Member, Firm, Regulated non-member. They are set by the governing council which are the basis of the RICS ROC Bye-Law 1; Applications and Definitions Bye-Law 2; Membership and Registration Bye-Law 3; Designations Bye-Law 4; Contributions to Funds Bye-Law 5; Conduct |
| What is a Royal Charter? | A document issued by the King/Queen as a patent granting right of power to an individual or a body corporate (in this case RICS) It defines RICS’ objectives, constitution and powers to govern its own affairs. – Awarded in 1881 by Queen Victoria – The Royal Charter requires the RICS to promote the usefulness of the profession for the advantage of the UK public and in other parts of the world – In practice, the charter means that important changes to the constitution – its bye-laws – must be ratified by the UK Government, through the Privy Council, even after they have been approved by the majority of member voting at a general meeting – Royal Charter secures the advancement of knowledge in the profession – Grants a professional body their own ‘legal personality’ |
| What does the Royal Charter mean for RICS? | Means that important changes to RICS’ constitution – its byelaws – have to be ratified by the UK government, through the Privy Council, even after they have been approved by a majority of RICS members voting at a general meeting. |
| What is Ethics? | Ethics is a system of moral principles. They affect how people make decisions and lead their lives. Ethics is concerned with what is good for individuals and society and is also described as moral philosophy. |
| What are the six ethical principles of RICS? | Honesty, Integrity, Competence, Service, Respect and Responsibility. |
| What is online Ethics module on Professional Ethics? | Online module to be undertaken by members every 3 years. |
| What are the RICS New Rules of Conduct? | The Rules of Conduct are mandatory standards of professional conduct and practice expected of all RICS members, candidates, students, and regulated firms. Rule 1: Members and firms must be honest, act with integrity and comply with their professional obligations, including obligations to RICS. Rule 2: Members and firms must maintain their professional competence and ensure that services are provided by competent individuals who have the necessary expertise. Rule 3: Members and firms must provide good-quality and diligent service. Rule 4: Members and firms must treat others with respect and encourage diversity and inclusion. 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. |
| What does the new Rules replace? | Rules of Conduct for Members. Rules of Conduct for Firms. Global Professional and Ethical Standards. |
| Why did the RICS Global Professional & Ethical Standards Changed? | The RICS Rules of Conduct have recently been updated to help the global profession respond to new risks and opportunities. RICS introduced the following changes to bring the ethical standards into one clear framework: 1. A simpler structure – made it easier for RICS members and firms to understand the rules, providing more confidence for clients and the public. 2. Clear examples – to help support members’ professional judgement, each Rule is illustrated with examples of how members and firms can behave to comply with the Rule. There are also 12 case studies showing real-life application of the Rules. 3. Focusing on respect, diversity and inclusion – whether it’s encouraging diversity and inclusion, or tackling modern slavery, respect and courtesy underpin all RICS professional ethics. 4. Understanding evolving technology – the Rules highlight the importance of understanding the evolving use of data and technology, and the associated benefits and risks. 5. Tackling global challenges – the Rules show that ethical practice by RICS members and firms has an important role when it comes to global challenges, including creating sustainable development and tackling climate change. |
| When did the Rules of Conduct changes come into affect? | The new Rules of Conduct came into effect on 2 February 2022. |
| What are the various governance bodies of RICS? | Governing Council is RICS’ governing body. It delegates responsibilities to the RICS Board, which is akin to a corporate board, but retains the function of setting RICS’s strategy and vision and approving changes to RICS’s constitutional documents. Governing Council oversees the effectiveness of the RICS Board and the Standards and Regulation Board. RICS Board has delegated responsibility for delivery of the business plan and oversight of operations (excluding standards and regulation). The Standards and Regulation Board has exclusive responsibility for exercising RICS’ regulatory functions, including strategy, governance, structure, policy and operational oversight in the public interest. It oversees the activities of RICS’ professional standards, entry and admission to the profession, education and qualification standards, regulatory operations, dispute resolution services and the Regulatory Tribunal. The Board is independently led and comprises non-members (independent) and members of RICS, and reports to Governing Council. |
| What is the composition of the RICS Governing Council? | The current composition consists of: RICS President RICS President Elect RICS Senior Vice President 6 Professional Group seats (Building Surveying and Building Control – vacant) 13 Geographic seats (Americas, Asia Pacific x 2, Europe, Middle East & Africa, UK & Ireland x 8) NextGen seat Senior Independent Governor Independent Member Appointed Member seats x 2 All Governing Council members, with the exception of the Senior Independent Governor, the Independent Member and two Appointed Members, are RICS professionals. |
| Who is the RICS Leadership Team made up of as of 2025? | The leadership team at RICS includes:- Nicholas Maclean is Acting President and Acting Chair of Governing Council. He is also the RICS President Elect. Maureen Ehrenberg is Acting President Elect, Senior Vice President, RICS. Justin Young is the Chief Executive Officer. Candidates must verify above data as on date of viewing this webpage. |
| How many pathways are there in RICS? | For Associate qualification (AssocRICS) there are 13 sector pathways available. For Chartered qualification (MRICS) there are 22 sector pathways. |
| What are the levels of membership in RICS? | RICS Student Associate Member (AssocRICS) Chartered Member (MRICS) RICS Fellow (FRICS) |
| What are the benefits of RICS membership? | Recognition – MRICS and CHARTERED SURVEYOR trade marks are globally recognised as indications of professionalism and excellence. Knowledge – International practice standards, professional guidance, CPD and knowledge sharing. Network – Access to 134,000 RICS professionals worldwide. Lionheart – access to RICS charity organisation |
| Are you aware of any guidance that applies to RICS Members when using Social Media? | The RICS introduced the Guidance Note ‘Use of Social Media: Guidance for Members’. The Guidance note sets out the same standards as stipulated in the RICS Rules of Conduct and reminds members that these do not change whether communicating via social media, face to face or traditional forms of media. |
| How do you ensure you operate inline with RICS guidance on the use of Social Media? | I am always sure to use social media in a responsible and professional manner in the same way that I communicate via face to face or other written forms of communication. I am sure to use professional and respectful language when communicating and understand the responsibility in representing the RICS. I would never make a post that is dishonest or would cause offence in any way. I realise that this could potentially undermine public confidence and trust in the profession. |
| When would the RICS investigate a Social Media post made by one of its members? | An investigation may take place if a social media post is:- Discriminatory. Dishonest. Abusive or threatening. Likely to cause significant harm, distress or offence to a person. Shows a pattern of frequent or large number of concerning communications. Ignores previous advice or warnings about concerns. |
| Please explain your understanding of the RICS Business Plan for 2024? | Within the RICS business plan, I am aware of the following targets:- Matrics Expansion into South Asia – The Governing Council is prioritising support for the next generation of early career professionals with Matrics networks expanded to South Asia, Greater China and Southeast Asia and Australia markets. Sustainability Leadership – RICS aims to lead on global issues such as decarbonisation, climate resilience, biodiversity, and the circular economy. This involves strengthening carbon measurement standards, influencing policymakers, and equipping members with training and tools to address sustainability challenges. Attracting Diverse Talent – Efforts are underway to attract a wider range of individuals into the profession. This includes modernising the assessment process, increasing support for early-career professionals, and creating grants and bursaries for underrepresented groups. Enhancing Member Engagement – The RICS is working on improving the value and experience for its members. This includes better understanding of their needs through data insights, creating stronger connections among members and promoting their work and professionalism publicly. Strengthening Trust – The institution plans to enhance public trust by refining its regulatory processes, ensuring transparency, and maintaining high standards for ethical and technical practices. |
| Can you please explain your understanding of the recent RICS Fee changes? | The RICS has announced a 3.5% increase in professional subscription fees for 2025, marking the first adjustment in five years. The decision was made to address rising operational costs and inflation, which RICS had been absorbing. A new subscription framework has also been introduced to create a fairer and more regionally equitable system, taking into account member grades, benefits, and local economic conditions. For example, UK-based professional members will pay £558, while fellows will pay £681. The framework is designed to reflect affordability, with fees varying internationally based on local market conditions and exchange rates. In some regions, like parts of Africa, fees have decreased to enhance affordability. Members under two years and those pursuing qualifications will see tiered rates depending on their status. |
| Please explain your understanding of the RICS Inclusive Employer Quality Mark? | The RICS is launching a scheme known as the Inclusive Employer Quality Mark. This is designed to improve diversity and inclusion within the property and construction sector. The scheme requires employers to pledge their commitment to adopting and continually improving against the following six principles: Leadership and Vision. Recruitment. Staff development. Staff retention. Staff engagement. Continuous improvement. Participating firms will be required to assess their performance against the criteria on a bi-annual basis. RICS will use the assessment information to document the outcomes and trends for the profession as a whole. Participating firms are able to use the branding of, ‘Signatory to the RICS Inclusive Employer Quality Mark’. |
| What is the RICS doing to improve Diversity & Inclusion? | The RICS has setup ‘Diversity & Inclusion leadership’ which is a knowledge hub allowing the RICS to share ideas on how and why diversity & inclusion is so important to the RICS. This has included initiatives such as: International Women’s Days celebrating the achievement of Women in our profession. Pride 2023: LGBTQ+ equality pledge focusing on the importance of LGBTQ+ representation in the profession. The McGregor-Smith Review – aiming to develop black and ethnic minority talent within the profession. |
| Please explain your understanding of how the RICS define Professional Standards vs. Practice Information? | Following the Bichard Review and its recommendations the RICS have introduced two new definitions for Professional guidance which are now split into Professional Standards and Practice Information. These supersede the former definitions including Professional Statements, Guidance Notes and Codes of Practice. Professional Standards – set out requirements or expectations for RICS members and regulated firms with a focus on baseline expectations for competence and ethical behavior. They contain mandatory requirements that surveyors must follow, where the word ‘must’ is used with best practice that surveyors should follow, where the word ‘should’ is used. E.g. Conflicts of Interest, Complaints Handling etc. Practice Information – set out supporting guidance to advise surveyors in delivering specific services or working in specific areas of practice. The guidance is not mandatory and does not provide explicit recommendations. Practice Information can refer to processes, toolkits, checklists, insights, research and technical information or advice. E.g. Black Book |
| What steps would you take in the event of a Main Contractor insolvency? | I would ensure all contractual procedures related to insolvency are followed, especially regarding termination rights and obligations. I would then make records on payments made, work progress and materials on site. If the contractor’s insolvency means they can no longer fulfil their obligations, the contract should be terminated following the specified procedures. The site should be secured to prevent further damage or unauthorised access if the contract permits this. It may also be necessary to inform subcontractors to remove materials or to secure their assets. A chartered surveyor should prepare a detailed valuation statement reflecting the current state of the project. This includes assessing completed works, retention sums, and any outstanding claims, such as loss and expense. Engagement of alternative contractors may be required. If a new contractor is appointed to complete the work, a new tender process or a novation of the original contract may take place. If the contract includes provision for step-in rights through collateral warranties a lender or developer may take over the project. |
| What is the notional account? | A Notional Account in construction contract is a Final Account prepared for projects facing insolvency, or for project contracts that are to be determined except by performance. |
| What is RICS policy regarding PII? | ‘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.’ The nature and extent of the insurance must be adequate and appropriate having particular regard to: • an ‘each and every’ claim basis or aggregate plus unlimited round the clock reinstatement basis • RICS’ minimum policy wording or more comprehensive wording. As a minimum, you should ensure that your policy wording is written on a full civil liability basis and • the minimum level of indemnity based on the firm’s turnover in the previous year (or estimated for a new firm). Firm’s turnover in the preceding year: Minimum limit of indemnity £100,000 or less: £250,000 £100,001 to £200,000: £500,000 £200,001 and above: £1,000,000 Maximum level of uninsured excess (the part of each claim the firm must pay itself) Limit of indemnity : Maximum uninsured excess Up to and including £500,000 : The greater of 2.5% of the sum insured, or £10,000 Over £500,000 : 2.5% of the sum insured Policies must be: Fully retroactive, Underwritten by a listed insurer, Cover for past and present employees |
| What are the purposes of having professional indemnity insurance? | The purposes of having professional indemnity insurance are to: • ensure that if the firm faces a claim, it is protected from financial loss that it cannot meet from its own resources • protect the insured member or firm against the consequences of its liability to pay damages to third parties for breaches of professional duty that it commits through its professional activities and • ensure that the firm’s clients do not suffer financial loss, which the firm cannot meet. |
| What is Fully retroactive in PII? | PII policies work on a ‘claims made’ basis. This means that the policy covers claims that are first made against the insured during the period of insurance regardless of when the negligent act occurred. If the retroactive date of the policy is stated as ‘none’ then the policy is fully retroactive and all former work carried out by the firm will be covered. |
| What is runoff cover? | To ensure that firms, members and their clients are not exposed to financial detriment in the period following a firm ceasing to trade, RICS requires firms to obtain fully retroactive run-off cover. The requirement is for a limit of £1,000,000 in all for a period of six years from the expiry date of the policy in force at the time of cessation. |
| Please explain your understanding of the Merritt vs Babb caselaw and the importance of this? | The defendant, a chartered surveyor, was employed by a firm of valuers (owned by an individual) as manager of one of the firm’s branch offices. In the course of his work the defendant carried out a mortgage valuation for a building society, signing the valuation report in his own name and stating his professional qualifications. By the time the house purchaser sought to bring an action for negligence on the basis of this report the owner of the firm had become bankrupt and the firm’s professional indemnity insurance policy had been cancelled. The firm was therefore not worth suing. The Court of Appeal held by a majority that the purchaser was entitled to recover damages from the defendant personally, despite the fact that the purchaser had not actually seen the valuer’s report and was unaware, at the time of purchase, of his identity. This case potentially increases the categories of ‘professional persons’ who may be held to owe a duty of care personally to those who rely on their services as well as to their employers. That has implications for professional indemnity insurance. Employed professionals need to be insured in their personal capacity for services they render in the service of their employer. |
| Please explain your understanding of the professional obligations of members? | The professional obligations of members include:- 1. Members must comply with the CPD requirements set by the RICS which requires 20 hours of CPD for each calendar year, 10 hours of which must be formal CPD. 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. |
| What are the professional obligations of firms? | The professional obligations of firms include:- 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. |
| What is CPD and why is it important? | Continuing professional development (CPD) is a commitment by RICS members to continually update their skills and knowledge in order to remain professionally competent. CPD is important as RICS is a standard based organisation and its members operate in a constantly changing environment e.g. new legislation. RICS expect its professionals to be competent in order to provide the best possible service. CPD is a highly beneficial career tool if it is planned and managed in the right way; it can be used to strengthen the member’s business skills and to acquire new skills / specialisms. |
| What is the RICS’ CPD policy | CPD requirements for members 1. All members must undertake a minimum of 20 hours CPD each calendar year (January to December). 2. Of the 20 hours at least 10 hours must be formal CPD. The remainder can be informal CPD. 3. All members must maintain a relevant and current understanding of our professional and ethical standards during a rolling three-year period. Any learning undertaken in order to meet this requirement may count as formal CPD. 4. Members must record their CPD activity online by 31 January. |
| What is ‘Formal’ CPD? | Formal CPD can be any form of structured learning that has clear learning objectives and outcomes, such as a professional course or structured online training. It could also be learning that includes an assessment measure. Members could be asked to provide supporting evidence of any formal learning entered onto the CPD management system. |
| What is ‘Informal’ CPD? | Informal CPD is any self-managed learning that is relevant or related to a member’s professional role. This could include activities such as private study, on-the-job training, attendance at informal seminars or events where the focus is on knowledge sharing. Members could be asked to provide supporting evidence of any informal learning entered onto the CPD management system. |
| What happens if a member does not comply with the rule to complete 20 hours of CPD and/or does not record this online by the deadline? | The first year that a member fails to record sufficient CPD to meet the requirements of the CPD rule, they will have committed a breach and receive a Fixed Penalty caution in accordance with Rule 4(c) of the Disciplinary, Registration and Appeal Panel Rules 2009. This first CPD breach and the issue of a Fixed Penalty caution will remain on the member’s disciplinary record for 10 years Second CPD breach (within 10 years of receipt of caution): o Fixed Penalty caution and fine (of £150 or local equivalent). o RICS will also publish on the RICS website a list of members who are non-compliant for a second time. o Non-payment of the fixed penalty fine within 28 days of notification will lead to the fine being increased (to £250 or local equivalent). o If the fine remains unpaid, debt recovery action will be taken, and the member may be referred to a Disciplinary Panel. Third CPD breach (within 10 years of receipt of caution): o Potential referral to Disciplinary Panel which may result in expulsion from membership and likelihood of costs being awarded against the member. |
| Is it possible for a member to be granted an exemption from their CPD requirements? | Yes – in certain situations, a member can be granted an exemption from recording their CPD in a particular year. E.g. Compassionate grounds/ill health, Exceptional Hardship, Maternity / Paternity /adoption of a child under the age of 16 / Family Raising, Unemployed/ Retired/ Non-practising, Dual Membership etc. |
| If you are not sure whether CPD is formal or informal, what could you do? | Refer to RICS CPD decision tree |
| What is the role of Professional Groups? | Professional groups are the way that RICS segments the various technical specialisms of the profession. In total there are 18 groups covering the broad spectrum of surveying services. Our Professional Groups: Building Control, Building Surveying, Commercial Property, Dispute Resolution, Environment and Resources, Facilities Management, Geomatics, Machinery and Business Assets, Management Consultancy, Minerals and Waste Management, Planning and Development, Personal Property/Arts and Antiques, Project Management, Quantity Surveying and Construction, Residential Property, Rural, Valuation |
| What is RICS Matrics? | RICS Matrics is our early career community designed to support students, apprentices, trainees and those who are newly qualified (up to 10 years), as they move into the industry. It gives the community a platform to influence the profession, as well as an opportunity to network and gain support as they go through the assessment. |
| What is Lionheart? | “- Lionheart is an independent charity run by RICS professionals, for RICS professionals – Benevolent fund established over 100 years ago – Offers advice and in certain circumstances financial assistance – It is independent to the RICS – Provides support to current and past members of the RICS and their families “ |
| What is a Construction and Technology Court? | It is a specialist court with specialist judges who deal with all types of construction, engineering and technology disputes both from within the UK and which arise internationally. In Dubai, at Dubai International Financial Centre Courts (DIFC) there is a Technology & Construction Division (TCD) which draws on specialist judges and a new set of industry-specific rules to fast-track dispute resolution, providing greater certainty to businesses in court. The Division will only hear technically complex cases. Examples in the construction sector might include complicated engineering disputes or claims arising out of fires. Technology-related cases could include liability for cybercrime incidents, disputes over the ownership and use of data, and issues relating to emerging technologies such as artificial intelligence or connected cars. |
| What is a locum? | RICS requires ‘a Firm which has a sole principal (i.e. a sole practitioner or a sole director in a corporate practice) to have in place appropriate arrangements in the event of that sole principal’s death or incapacity or other extended absences’. A locum is effectively another professional who is appointed to ‘stand in’ for the surveyor if they are unable to work, e.g. in the event of an accident/illness, unforeseen circumstances, prolonged absence (e.g. holiday or a sabbatical) or death. Typically, a locum will be another Chartered Surveyor, although they could also be aa solicitor or accountant by trade, i.e. a trusted professional. If a firm is being run by a locum then RICS must be notified. |
| Please explain your understanding of the term conflict of interest? | A conflict of interest is where someone in a position of trust has competing personal or professional interests making it difficult for them to fulfil their duties impartially. An existing relationship will result in reduced impartiality and Chartered Surveyors have an obligation to make clients aware of this and if necessary decline work opportunities where a conflict of interest occurs. |
| What are the types of Conflict of Interest? | 1. Party Conflict – a situation in which the duty of an RICS member or a regulated firm to act in the interests of a client or other party in a professional assignment conflicts with a duty owed to another client or party in relation to the same or a related professional assignment 2. Own Interest Conflict – a situation in which the duty of an RICS member or a regulated firm to act in the interests of a client in a professional assignment conflicts with the interests of that same RICS member/firm 3. Confidential Information Conflict – a conflict between the duty of an RICS member to provide material information to one client, and the duty of that RICS member or of a regulated firm to another client to keep that same information confidential |
| How could the conflict of interest be managed internally if two separate departments were working for the same client? | This could be manged by putting the following measures in place:- Ensuring exclusivity of staff to each department. Ensure separate communication lines are reporting back into the client. Separate the geographical locations of each department. Sign team members up to non disclosure agreements. Monitor the potential conflict and keep the client updated. |
| What is Information Barrier? | ‘Information Barrier’ means: the physical and/or electronic separation of individuals (or groups of individuals) within the same firm that prevents confidential information passing between them. |
| If the client was insistent that you worked for them despite an existing conflict of interest, how would you proceed? | I would firstly check the clients understanding around the conflict of interest to ensure they understood the implications regarding the potential risk for reduced impartiality. A letter of instruction to continue would be required from the client. I would then discuss the working procedures to manage the conflict of interest and agree this formally in writing with the client. |
| What is RICS policy on Conflicts of Interest? | An RICS member or regulated firm must not advise or represent a client where doing so would involve a Conflict of Interest or a significant risk of a Conflict of Interest; other than where all of those who are or may be affected have provided their prior Informed Consent. Every RICS member working independently or within a non-regulated firm or within a regulated firm must: a) identify and manage Conflicts of Interest in accordance with this professional standard and b) keep records of the decisions made in relation to whether to accept individual professional assignments, the obtaining of Informed Consent, and any measures taken to avoid Conflicts of Interest arising |
| What is Informed Consent? | ‘Informed Consent’ means: consent given willingly by a party who may be affected by a Conflict of Interest. |
| When should Informed Consent be sought? | Informed Consent may be sought only where the RICS member or regulated firm is satisfied that proceeding despite a Conflict of Interest is: a) in the interests of all of those who are or may be affected and b) is not prohibited by law, and that the conflict will not prevent the member or regulated firm from providing competent and diligent advice to those that may be affected. |
| What is Confidential Information? | Confidential information is information that is not publicly available, may or may not have commercial value, is communicated in confidence, and is reasonably protected. |
| When is it permitted to disclose Confidential information? | When the disclosure is required or permitted by law, or the RICS member or regulated firm concerned can demonstrate that the relevant party consented to the disclosure before it was made. |
| Under the Bribery Act, under what circumstance is a facilitation payment permitted? | The only circumstance in which it is OK to make a facilitation payment is when you are under duress where there is a real and present risk or danger to “life, limb or liberty”. If you or your companions are under immediate physical threat you should put safety first, make the payment and report the matter immediately or as soon as is practicable to your manager or your ethics compliance contact. |
| What is a complaint? | A complaint is any expression of dissatisfaction. |
| What is RICS policy regarding complaints? | RICS Rules of Conduct place professional obligations on RICS-regulated firms, set out in Appendix A to the Rules, which include: Firms must publish a complaints-handling procedure, which includes an alternative dispute resolution provider approved by RICS, and maintain a complaints log. |
| What are Terms of Engagement? | Terms of engagement are a written record of the agreement between the client and the firm, in order to avoid doubt and confusion. Terms of Engagement help to define the circumstance and context in which complaints may be made or managed. |
| What is an effective CHP? | An effective CHP should: • be fit for purpose – it should reflect the size and structure of the business • made available to all staff – a CHP is intended to provide clarity and consistency to staff and clients • be understood by all staff – keep records of staff training • readily be shared with complainants or potential complainants – supplying them with a copy should be routine • be regularly reviewed at a senior level – record evidence of review, to include reviewer details and review date • be agreed with PII brokers/provider(s) – the CHP should reflect processes that do not compromise PII cover and • provide details of access to independent redress if the firm cannot resolve the complaint. |
| What to do when we receive a complaint? | • Establish who is in communication with you and be careful to whom you give information out. • Seek to establish the context of the complaint by listening carefully to what the customer has to say. • Record the details of the complaint promptly and accurately. • In accordance with the CHP, acknowledge receipt of the complaint promptly. Supply the complainant with a copy of the firm’s CHP and a nominated contact. • Evaluate whether the issue is one that should be notified to insurers under the terms of the firm’s PII; if in doubt, seek your broker’s advice. • Establish one point of reference for the complainant to communicate with; this provides confidence and reduces the risk of future confusion. • Clearly set out the next steps and provide clear timeframes within which they will occur. • Evaluate the complaint in accordance with the CHP. • Evaluate the significance and potential consequences of the complaint. Consequences may be financial and/or reputational. • Where appropriate or required, obtain a view from insurers and/or legal advisers. • Respond within the timeframes previously set out to the complainant or contained within the CHP. Stick to the facts. • If the complaint is rebutted explain why, referring if appropriate to specific clauses of the Terms of Engagement or to specific circumstances of the inspection or the purpose of the report. • Additional investigations may include a re-inspection of the property by the firm, possibly using another surveyor, or alternatively advice may be sought from independent third parties with relevant skills. There are costs associated with the use of third parties. The basis of settlement for these costs may require agreement with the complainant, and reference to insurers may be required. • Where escalation or continuing negotiation is necessary, ensure that the processes set out in the CHP continue to be adhered to. |
| What is RICS policy on Gifts? | RICS ROC Rule 1 requires members and firms to act with integrity and not to be influenced improperly by others (as a result of, for example, giving or receiving work referrals, gifts, hospitality or payments) Only offer or accept gifts and hospitality that are customary, proportionate and reasonable in terms of value |
| What is petty cash? | It is a small amount of company funds kept aside to make minor or not-so-significant purchases. For example, daily travel tickets, office tea or coffee, sanitary products for the workspace, stationary, etc. |
| What is RICS Whistle blowing policy? | RICS launched a new whistleblowing policy in 2022 in collaboration with Protect, a UK charity established to provide advice on whistleblowing. The new Whistleblowing Policy will support and protect our employees across the globe in raising their concerns where the public interest is at stake: risk to the wider public, members and firms, customers, staff or RICS itself. The term ‘whistleblowing’ describes raising serious concerns about malpractice, mistreatment, suspected wrongdoing or danger at work. This could include potential health and safety concerns, financial inaccuracies or breaches of regulation among others. |
| If RICS member firm is unable to renew the PII then what will happen? | To ensure the availability of professional indemnity insurance (PII) RICS has a market facility, the Assigned Risks Pool (ARP). The ARP is collectively underwritten by all RICS Listed Insurers and managed on behalf of insurers and RICS by Miller Insurance Services LLP. The ARP is open to all UK RICS regulated firms that are unable to obtain PII, which meets the minimum requirements of RICS. Firms may be unable to obtain PII for a variety of reasons. Failure to explore the ARP route in these circumstances will put the firm in breach of RICS Rules of Conduct and may lead to disciplinary action by RICS. |
| After applying ethical decision tree still if you are not clear whether certain act is ethical or not, what would you do? | I will not proceed with the activity when I am not sure if it is ethical or not. Record the decision and the reasoning for it. |
| What are the classes of members of RICS? | (a) Chartered Members, comprising: (i) Fellows; (ii) Professional Members; (b) Non-Chartered Members; and (c) Honorary Members. |
| Is a Chartered Surveyor allowed to use social media? | Yes, RICS member is allowed to use social media in line with the “Use of social media: guidance for RICS members” published by RICS. This guidance is intended to help RICS members and regulated firms understand how the Rules of Conduct apply to the use of social media, and what RICS will take into account when concerns about social media use are reported to us. Members of RICS and regulated firms are likely to want to use social media to network with others, promote their businesses, comment on issues and engage in debate. The use of social media engages the right to freedom of expression. While using social media, members should check the following things: 1. Whether the content is dishonest or misleading 2. Whether the content is discriminatory 3. How closely connected the content is to professional life 4. Whether the content is confidential or private |
| What is money laundering? | Concealing the source of the proceeds of criminal activity to disguise their illegal origin. This may occur through hiding, transferring and/or recycling illicit money or other currency through one or more transactions, or converting criminal proceeds into seemingly legitimate property. |
| What are some typical indicators of money laundering? | 1. Unusual and secretive clients 2. Unusual transactions 3. Unusual source of funds 4. Third-party funding 5. Sudden changes in instructions |
| What is RICS policy on Money laundering and terrorist financing ? | RICS-regulated firms must: • not facilitate or be complicit in money laundering or terrorist financing activities • have systems and training in place to comply with local legislation, and ensure these are followed • report any suspicions of money laundering or terrorist financing activities to the relevant authorities (as specified in local legislation); where there is no local legislation the activity should be recorded • take appropriate measures to understand the client and the purpose of the transaction • verify the identity of their client by undertaking identity checks, such as examining an identity document and obtaining proof of address RICS-regulated firms should: • have a written policy addressing money laundering and terrorist financing risks • provide appropriate, recurring training for staff to ensure they are familiar with the risks associated with money laundering and terrorist financing and the firm’s systems to counter these risks • have appropriate governance and systems controls in place, proportionate to the type of work the firm does |
| What is the difference between bribery and corruption? | Bribery involves giving or receiving something of value to influence a person’s actions or decisions, often in violation of the law or ethical standards. Corruption involves using power or authority for personal gain, often through illegal or unethical means. |
| What is RICS Client money protection scheme ? | RICS operates a Client Money Protection Scheme (CMPS) in the UK. This scheme provides protection, as a last resort, in instances where an RICS Regulated firm is unable to repay a client’s money, up to the limits and exceptions set out in the scheme rules. |
| Revised requirement in Client money protection scheme since 25 June 2020? | 1. Claim time limit increased from 6 months to 12 months of a loss being discovered 2. Aggregate annual claim limits increased from £5.3 million to £10.3 million |
| How would you close down a practice (RICS Compliance)? | Inform RICS, apply to deregister your firm and ensure your contact details are up to date. When you have ceased to practise, ensure that anyone trying to contact you will be notified that you have closed. Consider who else should be contacted about the closure of your practice. If you have professional indemnity insurance notify your professional indemnity insurers and arrange run-off cover. Make arrangements in respect of files and digital records you are holding to keep them safe and confidential for as long as required. Deal with client money outstanding in your client account. |
| If the Client is absconding and your firm has Client money, what you suggest? | If your firm has any surplus client money in a client account, best practice is to: Ensure that all efforts are made to trace the clients or owners of the money. Hold the surplus money in a client suspense account. Hold surplus money for at least three years. If, after three years, the client or owner of the money has not been found and no true claimants to the money have come forward, it must be donated to a registered charity. A receipt must be obtained for this transaction so should a true claimant come forward to collect the money it can be made available to them. The receiving charity should offer the donating firm an indemnity to enable the firm to recover a donation in the event of a claim. You can choose to donate surplus client money to RICS’ registered charity, LionHeart. |
| What is Fixed Penalty? | A fixed penalty is an administrative fine and/or caution issued by RICS when a Regulated Member breaches the Rules. It is only applicable to a breach of the following rules: Rule 2 of Rules of Conduct in regards to Continuing Professional Development (CPD) Professional Obligations under Rules of Conduct in regards to providing information to RICS |
| What is the difference between an Institute and an Institution? | “Institute” is generally educational organization. ‘institution’ is more commonly used for organisations which provide a public services. |
| When Chartered Surveyor has dilemma whether his act is ethical or not, what he has to do? | Refer RICS Ethics Decision Tree. If still not sure, then don’t act. |
| What is Bribery act? | UK Act of 2010 which places obligations on companies to prevent bribery offences in their operations. |
| What is meaning of ‘Regulated by RICS’ ? | ‘Regulated by RICS’ is a recognised and respected designation used by RICS Member firms. Eligibility criteria to require firms to have at least 25% RICS qualified principals The requirement for regulated firms to designate a ‘Responsible Principal’ who will provide oversight, accountability and engagement with RICS standards and regulation. |
| What information does Chartered Survey firms has to send to RICS annually? | RICS Regulated firms are required to submit an annual report or return. This report provides information about the firm’s financial performance, governance, and compliance with RICS standards. |
| What you need to do to set up your own practice in terms of RICS compliance? | Insurances in place, CHP in place, follow RICS Rules of Conduct. |
| What is Regulatory Compliance Order? | A Regulatory Compliance Order is an agreement between RICS and a Regulated Member / Firm that they are liable for disciplinary action. In the agreement the Regulated Member: accepts that they have fallen short of the standards expected; and accepts the proposed sanction; and, in some cases, accepts to take steps to meet the standards expected and/or to prevent it happening again. A Regulatory Compliance Order shall consist of one or more of the following: Caution Reprimand A requirement that the Regulated Member gives one or more undertakings as to future conduct A requirement that the Regulated Member takes or stops taking certain actions within a specified period of time Conditions on the Regulated member’s continued membership of RICS Conditions on a Regulated Members registration for regulation A requirement that the Regulated Member pays a fine of up to £2000 per breach The new rules allow RICS to agree to impose cautions and reprimands which was previously not available through Consent Orders. |
| What is a Consent Order? | RICS may only enter into a Consent Order in relation to any concerns or information received prior to 1 October 2019, when the Regulatory Compliance Order were introduced. A Regulated Member agrees to accept a Consent Order with the Head of Regulation which can contains the following terms: To take a certain action within a specified period of time To desist from taking a certain action within a specified period of time Pay a fine (up to £2,000 per breach or equivalent currency value) Pay RICS’ costs |
| When is a Disciplinary panel applicable? | We will refer a matter to a Disciplinary Panel to consider imposing interim measures where the alleged breach of RICS standards is of such seriousness, of such concern or of such urgency that it appears necessary to restrict the activities of the member and/or firm in order to protect the public or the public interest |
| What are the seven pillars of RICS? | Pillar 1: Thinking ahead Pillar 2: Leadership and inspiration Pillar 3: Sustainability Pillar 4: Multidisciplinarity and Lifelong learning Pillar 5: Networks and collaboration Pillar 6: Technology Pillar 7: Ethics, Values and Standards |
| What characteristics do MRICS member need to become a FRICS? | Acting to further RICS and the profession. Acting for the benefit of a third party to reflect RICS’ public interest mandate. Promoting RICS objectives and the profession. |
| If elected as Chartered Survey member, how will you contribute to RICS? | Encourage colleagues and students to attain Chartered Membership of RICS, advise clients to appoint Chartered Members, helping candidates with preparation. |
| Your friend who is a RICS QS is failing to meet standards, what should you do? | Verify the facts, talk to the friend, if not improving then complain to RICS |
| When a CS firm can’t obtain Run-off cover prior to ceasing its business, what to do? | Make use of run-off pool cover. |
| What are the major challenges to RICS? | The impact of big data and artificial intelligence, climate change, urbanisation on an unprecedented scale, the loss of institutional trust. |
| How do you choose your PI Provider? | Choose only from list of RICS approved PI Providers. |
| You learn you will be subject to a criminal investigation. Though you are innocent, the investigation will soon be public knowledge. What should you do? | Inform management, seek legal advice. |
| You represent a client in a property sale. Your client instructs you to ignore offers from a particular minority group. What is the BEST thing you can do? | We should not promote discrimination of any group. |
| You spot that a fellow RICS member, who you know reasonably well, has posted offensive and abusive comments in response to an article published on an online forum used by local business people. What should you do in the first instance? | Talk to the RICS member and inform their actions are against ROC, request them to withdraw their comments as it will affect trust in our profession and tarnish RICS image, if they don’t listen then complain to RICS. |
| After receiving inside information about a competitor’s quote, you consider altering your terms to win a commission. You realise that you may be promising more than you can deliver but the commission would make lots of money for the company. What is the BEST thing to do here? | Do not alter terms as it is unethical and we should provide good quality service to Client. |
| You have a client who is also a personal friend. He invites you on holiday with his family. Which is the BEST response? | Due to ongoing business relationship, it may not be appropriate, so I would politely decline. If family insists, I will get clearance from management, share expenses with friend. |
| You are acting as an agent in the sale of a property and your son would like to buy the house. What is the BEST thing to do? | Inform Conflict of Interest to Management. Take Informed Consent. Act with integrity and ensure no bias. |
| Do you know any case law regarding run-off cover? | Babb v Merrett – The defendant, a chartered surveyor, was employed by a firm of valuers (owned by an individual) as manager of one of the firm’s branch offices. In the course of his work the defendant carried out a mortgage valuation for a building society, signing the valuation report in his own name and stating his professional qualifications. By the time the house purchaser sought to bring an action for negligence on the basis of this report the owner of the firm had become bankrupt and the firm’s professional indemnity insurance policy had been cancelled. The firm was therefore not worth suing. The Court of Appeal held by a majority that the purchaser was entitled to recover damages from the defendant personally, despite the fact that the purchaser had not actually seen the valuer’s report and was unaware, at the time of purchase, of his identity. Can come after the individual if business ceases trading therefore need to keep PI run off. |
| What is RICS gifts and hospitality policy? | Encourage transparency within the organisation by implementing a register including but not limited to: – gifts – hospitality, entertainment and expenses RICS members should declare certain items to their employer, including but not limited to: – gifts – hospitality, entertainment and expenses |
| What are the rules for using RICS logo? | The RICS logo is a registered trademark and should not be used or altered without permission. RICS’ Rules of Conduct require that ‘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’. |
| You are attending a Main Contractor organised business conference where it is announced that you have been randomly selected as the winner of this months prize draw. It is an I-pad air of significant value. How would you act in this scenario? | I would be extremely uncomfortable accepting the prize in this scenario. The prize is of a significant value and could be interpreted as a bribe. Furthermore due to working on a project with the Main Contractor at the time of this scenario, accepting the prize would have been highly inappropriate and could be interpreted as having an affect on my business conduct during the project. I would respectfully decline the prize and suggest that this is made as a charitable donation to a charity of the Main Contractor’s choice. I am aware that bribes are commonly distributed as random prizes and due to the seriousness of this incident I would report this to my line manager. |
| You receive an invite to attend the Theatre with some members of your Project Team but they dropped out due to illness at the last minute, would you still attend? | In the first instance I would declare this hospitality on my companies gifts and hospitality register. Assuming the invite was approved and I was authorised to attend, I would need to decline the invite due to the Project Team dropping out at the last minute as this would no longer be classed as a genuine business event. |
| You are bidding for a project and the client advises that if you reduce your fee bid by £3,000 you will be first place and win the tender, how would you advise the client? | This is an extremely sensitive issue in that this offer, if accepted would result in an unfair competition and would not be acting with integrity or with respect of competing firms. Taking a long term view, it is not sustainable to conduct business in this manner and would also devalue the services of the profession if repeated. I could advise that I would need to reduce my scope of services so that this is reflective of the fee reduction but in the first instance this offer from the potential client could also be interpreted as a bribe. |
| A client takes you out for lunch after a business meeting, where they continue to discuss business. The bill for the lunch comes to £200. What should you do now? | This lunch had a legitimate business purpose, so it’s fine to accept the hospitality however the client should have considered how a £200 bill for lunch could be perceived and have chosen a more modest restaurant. Given the size of the bill, it must be declared on the hospitality register and I would make my line manager aware immediately afterwards. I would offer to reciprocate but ensure this is carried out in a more modest manner as the lavishness of the restaurant could be interpreted as inappropriate and disproportionate. |
| A newly appointed project manager working for your Client’s organisation advises that they are concerned about the terms their predecessors agreed with you. They state not to expect the same terms and advise that if you give a 20% discount they will renew your contract. How would you respond? | Although this client is asking for a steep discount, it’s more a matter of them trying to renegotiate contract terms with us so this can’t be classed as a bribe. I would advise that we would consider offering the saving but the level of service and resource would need to be reviewed inline with the reduction. I would also evaluate if the original fees can still be considered as good value and a fair and reasonable sum. Providing this is still the case then any significant fee reduction would result in a devaluation of my services and profession. It may also not be sustainable and in the clients interests if I cannot provide a high standard of service that is required. A fee profile and resource schedule would need to be prepared to determine if the saving and adequate level of service can be offered. I may need to decline this opportunity if I am unable to offer the required level of service. |
| Assuming you were successful in getting chartered, how would you deal with a situation such as a friend who asks you to provide them with QS advice? | I could not offer advice on my own without PI insurance being in place. If I did have my own PI cover I would ensure that the information and advice provided was offered at the same level and subject to thorough checking processes as is the case under a regular client appointment regardless of this being for a friend. If I am not comfortable acting for them, I would advise them to use the RICS ‘find a surveyor scheme’. |
| A tender is in progress for which you have submitted a bid. You get a call from the client who advises that they are involved as a parent in a junior theatre group. The client says they have read about your firm’s community initiatives and ask you to sponsor their annual performance. They advise that they are desperately short of funds and that they have donated money themselves. How would you advise the client in this scenario? | The client may not be soliciting a bribe here however as a tender is in progress, any sponsorship made could be perceived as an undue influence and a bribe. In the first instance you would explain this to the client and decline to make a donation. To ensure transparency, you would also report the request to your line manager. Depending on advise from Senior Management it may be appropriate to escalate this to our firms whistleblowing policy. |
| A contractor invites you to lunch to a restaurant and advises they’ve got two Michelin stars and a wine list second to none. They say they are keen to discuss the details of their tender they are about to submit for the project you are working on. How would you respond? | Going to what sounds like a lavish lunch paid for by a bidder in the middle of a tender process is against Company policy and could be an offence under the UK Bribery Act. If this were the first time, it would be OK just to decline and explain that such an invitation is inappropriate. However if the contractor is persistent and there is a red flag in that he wants to discuss things that he cannot put in writing, I would report this infringement. |
| The partner says you have spent all the fees on the job, the final accounts are still to be agreed and some areas are still to be re-measured according to the contractor, what should you do? | In this scenario I would need to ensure that I do not lower my level of services despite the fees being expended. I would look to investigate why all the fees have been spent and determine any errors in our fee calculations. Measures should be put in place to ensure this does not happen again however if it is due to additional services being provided, I would provide all the relevant details to my director to prepare a claim for additional fees. I would ensure that I keep track of all fee spending and of all works not included in our scope of services. |
