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RICS Professional Ethics© DeLever 2018
Agenda
• Ethical Principles
• RICS Global Ethical Standards
• What’s new in Conduct & Ethics
• Typical APC questions
RICS, the Royal Charter
• Incorporated by Royal Charter
• Sets out the objective of the Institution:
To “maintain and promote the usefulness of the profession for the public advantage.”
• Amended from time to time by the‘Supplemental Charter’
1792: First meeting
1868: RICS Council
2018:
RICS Constitution
Cons
titut
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Rul
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Info
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Gui
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Ethics
5
5 Principles of better regulation
• Are relevant!
• But are NOT the
5 Global Ethical Standards
Ethics - Generally
• Following a set of standards
• In professional & personal life
• Meeting standards of behaviour
• Expected of ALL members
What we already know!
• RICS 5 principles of better regulation
• Professional & Ethical standards
• Our own ‘Moral Values’
Following RICS Rules on ethical behaviour
could be a ‘partial’ defence should we be
accused of negligence…
My Ethical - Research
“A motivation based on ideas
of right and wrong”
“The philosophical study of
moral values and rules”
My Ethical - Research
Ethics?
“science of morals,
moral principles or code”
Morals?
“standard of conduct respected by
good men independently of positive law & religion”
Ethics – 5 Principles
Ethics – 5 Principles
1. Professional Ethics is a ‘process’
• Not a fixed text to be learned
• Way of viewing behaviour
• Constantly changing standards
• Ethical view TODAY may be different TOMORROW
Ethics – 5 Principles
2. Human behaviour
• Motive
• Money
• Power
• Compassion
Ethics – 5 Principles
3. Actions (= Consequences)
• Every force has an equal and
opposite reaction (Newton’s Third Law of Physics)
• Focusing on the issue of consequence
Ethics – 5 Principles
4. Points of View
• Dependent upon a individuals point of view
• Influenced by many factors
• Influenced by published codes and standards
• Often difficult in an international dimension
Ethics – 5 Principles
5. Good Ethical Business• Rests on mutual vulnerability• All susceptible to actions of others• To be treated how we treat others• RESPECT / REPUTATION
is NOT a right. It MUST be EARNED
RICS Global Ethical Standards
1. Act with Integrity
2. Always provide a high standard of service
3. Act in a way that promotes trust in the profession
4. Treat others with respect
5. Take responsibility
1. Act With Integrity
“This means being honest and straight forward in all that you do”
1. Act With Integrity
Including but not restricted to:• Being trustworthy in all that you do• Being open and transparent in the way you work. • Respecting confidential information of your clients • Not taking advantage of a client, a colleague etc.• Not allowing bias, conflict of interest etc• Making clear to all parties about a conflict of interest etc.• Not offering or accepting gifts, hospitality or services etc• Acting consistently in decisions or advice etc.
2. Always provide a high standard of service
“This means always ensuring that your client, or others to whom you have a professional responsibility, receive the best possible advice, support or performance of the terms of engagement you have agreed”
2. Always provide a high standard of service
Including but not restricted to:• Be clear about your service etc.• Act within your scope of competence• Be transparent about fees and any other costs• Communicate with your client in a way that will
allow them to make informed decisions • If you use the services of others then ensure
that you pay for those services as agreed etc.• Encourage your firm or organisation you work
for to put the fair treatment of clients at the centre
3. Act in a way that promotes trust in the profession
“This means acting in a manner, both in your professional life and private life, to promote you, your firm or organisation you work for and the profession in a professional and positive way”
3. Act in a way that promotes trust in the profession
Including but not restricted to:• Promoting what you and the profession stand for• Understanding that being a professional is
more than just about how you behave at work• Understanding how your actions affect others • Fulfilling your obligations. Doing what you say you will• Always try to meet the spirit of your professional
standards and not just the letter of the standards
4. Treat others with respect
“This means treating people with courtesy, politeness, and consideration, no matter their race, religion, size, age, country of origin, gender, sexual orientation or disability. It also means being aware of cultural sensitivities and business practices”
4. Treat others with respect
Including but not restricted to:• Always being courteous, polite and
considerate to people come into contact with• Never discriminate against anyone
for whatever reason• As much as you are able, encourage your
firm or organisation you work for to put the fair and respectful treatment of clients at the centre of its business culture
5. Take responsibility
“This means being accountablefor all your actions – don’t blame others if things go wrong, and if you suspect something isn’t right be prepared to do something”
5. Take responsibility
Including but not restricted to:
• Always act with skill, care and diligence
• If someone makes a complaint … respond in an
appropriate and professional manner
• If you think something is not right, being prepared
to question it and raise the matter as appropriate
Ethics – RICS Definition
Ethics?
“Giving of one’s best to ensure that clients’
interests are properly cared for, but in doing
so the wider public interest is also
recognised and respected”
Ethics – A broad spectrum
• Gifts, hospitality, bribes, inducements• Health & Safety• Equal opportunity, discrimination, sexual harassment• Conflicts of interest• Insider dealing• Money laundering• Disclosure of confidential information• Financial transactions
Ethics – A broad spectrum
• Fair competition• Alcohol & drug abuse• Whistle blowing• Non executive directors• Copyright & ownership of files• Standards in advertising• Protection of the environment • Relationships with local communities• Political and social behaviour
Ethics – In summary
• Ethics is increasingly important
• Green issues, codes of practice, health & safety
• Society continually developing views• Simple rules:
• Use your common sense
• Adopt a common balance
• Pause, think and reflect
Ethics – In summary
• Solutions to problems cannot be solely based upon ethical principles of ethical behaviour
• Often more than one solution may be • appropriate in a given context• You must follow your convictions• Acid test is if your decision reflects RICS guidance• Ultimately these are the standards we
will be tested against if we are judged
What’s NEW?
Diversity & inclusivity
Diversity & inclusivity
‘Inclusion’ is HOWwe make the mix work
to drive performanceand innovation…
‘Diversity’ is the MIX of differences that people bring to our lives every day…
Waterline of VisibilityWaterline of Visibility
GenderGender Skin ColourSkin Colour
RaceRace AgeAge
CultureCultureWealthWealth Social StatusSocial Status
EthnicityEthnicity
Physical AbilityPhysical Ability
NationalityNationalityLanguagesLanguagesValue SystemsValue Systems
Role / FunctionRole / FunctionLearning StylesLearning Styles
Life ExperiencesLife Experiences
TalentsTalentsThinking StyleThinking Style
HeritageHeritage Personality ProfilePersonality Profile
Family StatusFamily Status
SkillsSkills
Work StyleWork StyleLocationLocation
Political viewsPolitical views
ReligionReligionEducationEducation
BeliefsBeliefs Sexual IdentitySexual Identity
Diversity & inclusivity
Diversity & inclusivity
Bias…
“Inclination or prejudice for or against one person or group, especially in a way considered to be unfair”
Diversity & inclusivity
“RICS has introduced a policy and pledge to lead the industry as an influential leader in diversity & inclusion”
International Ethical Standards
International Ethical Standards
American Society of Appraisers (ASA) American Society of Farm Managers and Rural Appraisers (ASFMRA) Appraisal Foundation (TAF) Asian association for Investors in Non-listed Real Estate Vehicles (ANREV) Asia Pacific Real Estate Association (APREA) Asian Real Estate Association of America (AREAA) Asociacion Espanola de Analisis de Valor (AEV) Asociacion Espanola de Geometras Expertos (AEGEX) Asociacion Professional de Sociedades de Valoracion (ATASA) Association of International Property Professionals (AIPP) Association of Residential Managing Agents (ARMA) AssoimmobliareBulgarian Chamber of Professional Valuers (KPO) Câmara Brasileira da Indústria da Construção (CBIC) Chartered Institute of Architectural Technologists (CIAT) Chartered Institute of Building (CIOB) Chartered Institution of Water and Environmental Management (CIWEM) China Electricity Council China Institute of Real Estate Appraisers and Agents (CIREA) China Real Estate Valuers and Agents Association (CREVA) CORFAC International Commonwealth Association of Surveying and Land Economy (CASLE) Council of European Geodetic Surveyors (CLGE) Counselors of Real Estate (CRE) Dubai Real Estate Institute ETEK (Technical Chamber of Cyprus) European Association for Investors in Non-Listed Real Estate Vehicles Federação Nacional dos Corretores de Imóveis (FENACI) Ghana Institution of Surveyors (GhIS) Hong Kong Association of Property Management Companies (HKAPMC) HypZertIndonesian Society of Appraisers (MAPPI)
Initiative Corporate Governance of the German Real Estate Industry Institute of Estate Agents, Singapore (IEA) Institute of Philippines Real Estate Appraisers (IPREA) 4
Institute of Quantity Surveyors Indonesia (IQSI) Institute of Real Estate Management (IREM) Institute of Residential Property Management (IRPM) Institution of Civil Engineers (ICE) International Consortium of Real Estate Associations (ICREA) International Housing Coalition (IHC) International Real Estate Federation (FIABCI) International Right of Way Association (IRWA) International Valuation Standards Council (IVSC) Japan Association of Real Estate Counselors (JAREC) Japanese Society of Independent Appraisers (JASIA) Lonja De Propriedad Raiz De Bogota National Association of Realtors India (NAR India) National Society of Professional Surveyors (NSPS) Nigerian Institution of Estate Surveyors and Valuers (NIESV) Real Estate Institute of Australia (REIA) Real Estate Syndicate of Lebanon Real Property Association of Canada (REALpac) Royal Architectural Institute of Canada (RAIC) Royal Institute of British Architects (RIBA) Royal Institution of Chartered Surveyors (RICS) Royal Institution of Surveyors Malaysia (RISM) Russian Society of Appraisers Secovi-SP Singapore Institute of Building Limited (SIBL) Society of Chartered Surveyors Ireland (SCSI) South African Geomatics Institute (SAGI) South African Property Owners Association (SAPOA)
International Ethical Standards
1. Confidentiality 2. Disclosure3. Fiduciary Responsibility4. High Standard of Service5. Integrity6. Respect7. Responsibility8. Transparency 9. Trust10. Verification
Conflicts of interest GLOBAL / UK
Conflicts of interest GLOBAL / UK
MandatoryFrom
1 Jan 2018
Rules for Registration of Firms
Money laundering
What to look out forNumber of red flags1. The client2. The parties3. The source of funds4. The transaction5. The instructionsIt is important that professionals understand the factors that may indicate suspicious activity in each of these areas… etc.
General Data Protection Regulations
1. Lawful, fair, transparent2. Collected for specified purpose3. Adequate, relevant and limited4. Accurate / kept up to date; 5. Identification / for no longer than is necessary6. Processed in a manner that ensures appropriate
security“the controller shall be responsible for, and be able to demonstrate, compliance with the principles.”
General Data Protection Regulations
The GDPR provides the following rights for individuals:1. The right to be informed2. The right of access3. The right to rectification4. The right to erase5. The right to restrict processing6. The right to data portability7. The right to objectRights in relation to automated decision making and profiling.
PII review on Run Off Cover
• To ensure that private consumers are adequately protected by our current policy.
• to enable regulated firms to close down by being able to obtain the run-off cover they require in the market.
PII review on Run Off Cover
• 20hrs per annum
• 1 Jan to 31 Dec
• Min 10 hrs Formal
• Recorded online
• Ethics every 3yrs
Typical Final Assessment Questions?
Level 1Explain understanding of 5 Global Ethical StandardsAll of the explanation under each of the 5 headingsHOT TOPIC - Diversity & InclusionHOT TOPIC - Conflicts of InterestHOT TOPIC - IESCHOT TOPIC - GDPR 2018
Typical Final Assessment Questions?
Level 2• Explain doing / implementation of
Ethical Standards• Explain an example where you acted ethically• Select sample experience from your summary
of experience
Typical Final Assessment Questions?
Level 3• Select sample of advice from your summary of experienceOr a hypothetical scenario• Conflicts of Interest - New Global and UK practice note• Private function - PII, Terms of Engagement , CHP• Fee bidding - Underhand dealing, Unprofessional• Briefcase of cash - Clients Money, Money Laundering• Keeping Up to date
Ethical Benchmark – It’s your choice
= Consequence
CPDP
Further details – www.rics.org/ethics
Downloadwww.DeLever.co.uk/3cpd
© DeLever 2018