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What is today's blog about?
In this article, we will focus on what you need to know about conduct rules, ethics and professional practice for your final assessment interview. We've written it as a helpful crib sheet with additional links to find out further detail. Essential reading for RICS APC and AssocRICS candidates.
You can also listen to our CPD podcast on Anchor for more free AssocRICS and RICS APC training and support.
Who are RICS?
Global leading professional body promoting the highest standards in the property industry
Gold standard of professional regulation
Brief history of RICS
1792 - Surveyors Club formed
1868 - John Clutton elected first president of Institution of Surveyors
Incorporation by Royal Charter
Sets out objective - to promote usefulness of the professional for the public advantage
Changes to byelaws (RICS constitution) ratified by UK Government Privy Council after being approved by majority at a general meeting
Functions of RICS
Not regulated by Government - legislation only required if self-regulation not working
5 principles of better regulation (TPACT) - transparent, proportional, accountable, consistent and targeted
Benefits of being Regulated by RICS
Commitment to highest standards
Open to independent scrutiny
Protection (via Professional Indemnity Insurance - PII)
Security (via Complaints Handling Procedure - CHP)
Guarantee of professional training and experience
5 RICS Ethical & Professional Principles
Remember, ethical behaviour is a key part of being a professional.
Act with integrity
Always provide a high standard of service
Act in a way that promotes trust in the profession
Treat others with respect
Rules of Conduct for Firms
Part I - nominate a Contact Officer to liaise between the Firm and RICS, plus submit the Annual Return
Part II - conduct of business - ensure professional behaviour, act competently, provide a high standard of service, ensure staff undertake CPD, have a Complaints Handling Procedure (CHP), preserve security of clients' money, hold adequate Professional Indemnity Insurance (PII)
Part III - firm administration - advertise in a truthful and responsible manner, ensure finances managed appropriately, ensure arrangements are in place to cover incapacity/death of a sole practitioner, display Regulated by RICS designation in line with RICS' requirements, provide information to and co-operative with RICS as requested
Rules of Conduct for Members
Act competently (with due skill, care and diligence and proper regard for technical expectations)
Service instructions in a timely manner and to a high standard
Keep CPD up-to-date
Manage personal & professional finances appropriately
Provide information to and co-operative with RICS as requested
Know what happens if things go wrong. Potential sanctions by RICS include fixed penalty notices, consent orders, interim measures, panel hearings and expulsion from the institution.
PII has several purposes:
To protect firms from financial loss in the event of a negligence claim and consequences to pay third party damages
To protect clients from financial losses which the firm cannot meet
Firms must have adequate PII cover under Rule 9 of the Rules of Conduct for Firms. This means that it must be:
On an each and every claim basis / fully retroactive - covers claims made during the insurance cover period irrespective of when the original act occurred
Includes the RICS minimum policy wording
Provides a minimum level of indemnity based on turnover
Provides a maximum level of uninsured excess
Underwritten by an RICS approved insurer
Covers past and present employeesIncludes run-off cover when a firm or member ceases to trade
Ensure you read the RICS guidance to check the limits for cover - you may be asked in your final assessment interview.
Qualified members must undertake a minimum of 20 hours' CPD each year (i.e. completed by 31 December and recorded online by 31 January).
At least 10 hours must be formal, e.g. structured learning with clear objectives and outcomes.
Every three years, members must undertake CPD relating to professional ethics, e.g. the RICS online ethics walkthrough. Remember, these are different to the requirements for APC candidates.
Firms must have a CHP in place to deal with client complaints. The RICS publish guidance on how to fulfil this obligation.
Setting up in practice
From an RICS compliance perspective, the key things to do are to:
Advise RICS you are setting up in practice and registered for Regulation
Ensure you meet the requirements of the RICS Rules of Conduct
Put adequate insurance in place
Write appropriate policies, e.g. health & safety