RICS Ethics Test flashcards
RICS Ethics Test · Build recall with a focused review session.
32 cards. Read the term and the definition here. The deck at the top of this page is optional.
- RICS rules of conduct
- The binding standards applying to RICS-regulated firms and members, covering ethical behaviour, competence, service, respect and acting in the public interest.
- Integrity obligation
- A member must be honest and transparent, and must not mislead by statement or omission. Integrity obligations override conflicting client or employer instructions.
- Competence rule
- Members must only accept work within their competence, keep knowledge current, and properly supervise staff and subcontractors whose work they are responsible for.
- Terms of engagement
- Written agreement setting out scope, fees, timescales and responsibilities. It must be agreed before work starts and reviewed when the scope changes.
- Respect rule
- Members must treat others with courtesy and fairness, avoid discrimination, harassment and bullying, and protect the confidentiality and privacy of client information.
- Public interest duty
- Members must act in the public interest, disclose conflicts promptly, and decline instructions where independence cannot be preserved or managed.
- Conflict of interest rule
- Disclose the conflict in writing, obtain informed consent, apply information barriers, or decline the instruction if the conflict cannot be managed.
- Firm compliance responsibility
- A regulated firm must nominate a responsible principal accountable for compliance with the rules, and principals are accountable for the firm's conduct.
- Breach reporting duty
- A member aware of a breach of the rules by another member or firm must report it to RICS; failure to report is itself a breach.
- Misleading by omission
- Withholding material facts known to the member is a breach of integrity equal to making a false statement, and must be avoided.
- Confidentiality exception
- Confidential information may be disclosed only with authority, where law requires it, or where the public interest in disclosure outweighs the client's interest in confidentiality.
- Client due diligence
- Identify and verify the client and beneficial owner, apply risk-based ongoing monitoring, retain records, and report suspicious activity to the nominated officer without tipping off.
- Tipping off offence
- Disclosing to a client that a suspicious activity report has been made, or that an investigation is underway, is a criminal offence in money laundering legislation.
- Gifts and hospitality
- Gifts and hospitality must be proportionate, recorded in a register, and refused where they could improperly influence professional judgement or create a conflict.
- Objectivity in practice
- Judgement must be independent of fee arrangements, referral relationships, employment pressure and personal interest; conflicts must be disclosed and managed.
- Continuing professional development
- Members must maintain and record CPD relevant to their practice, keeping skills current so that services remain competent and compliant with the rules.
- Whistleblowing escalation
- Raise concerns internally first where safe; escalate externally to the regulator or prescribed person where internal channels fail or the matter is serious.
- Accurate advertising
- Marketing claims about qualifications, experience or results must be accurate, verifiable and must not imply RICS endorsement or approval that has not been given.
- Supervision accountability
- A member who delegates work remains accountable for its quality and must ensure the person doing it is competent and properly supervised.
- Referral fee disclosure
- Any fee or benefit received for referring a client to another party must be disclosed to the client in writing before or at the time of referral.
- Suspicious activity report
- A report of suspected money laundering sent to the firm's nominated officer and onward to the National Crime Agency or local equivalent financial intelligence unit.
- Nominated officer
- The person in a firm responsible for receiving internal suspicious activity reports, assessing them and deciding whether to disclose to the authorities.
- Cooperation with regulator
- Members must respond fully and within deadlines to RICS requests, and must not destroy, alter or conceal records relevant to an investigation or audit.
- Record retention
- Client identification, engagement terms, advice and transaction records must be kept for the period required by law and RICS, and produced on request.
- Protected disclosure
- A good-faith report of wrongdoing that qualifies for legal protection, shielding the reporter from detriment, dismissal or victimisation by the employer.
- Disciplinary outcomes
- RICS sanctions range from a caution or conditions on registration to a fine, suspension or expulsion; firms may face conditions or removal from the register.
- Compliance programme
- Written policies, a responsible principal, risk assessment, staff training, monitoring and a documented escalation and reporting procedure within the regulated firm.
- Bribery reporting route
- Bribery concerns go to the firm's compliance officer or the relevant law enforcement authority; internal escalation must not be used to suppress a genuine concern.
- Regulatory audit
- A RICS review of a firm's compliance with the rules, requiring production of records, policies and evidence of client due diligence and engagement terms.
- Breach of rules report
- A written, factual and evidenced report to RICS Regulation about a suspected breach of the rules of conduct by a member or regulated firm.
- Risk-based monitoring
- Ongoing client due diligence proportionate to assessed money laundering risk, with enhanced measures for higher-risk clients, jurisdictions and transactions.
- Sanction for non-cooperation
- Failing to cooperate with a RICS investigation, or obstructing it, is itself a breach of the rules and can lead to separate disciplinary action.