Ethics and Conduct: The NIESV Code in Practice
Ethics questions are usually scenarios. You are tested on the NIESV Code of Professional Conduct and Ethics and on ESVARBON's disciplinary powers, and you must be able to state what a member does before, during and after an instruction.
The five anchors
Integrity (straight dealing), objectivity (no bias, conflict or undue influence), competence and due care, confidentiality, and professional behaviour (comply with the law; avoid conduct that discredits the profession).
Rules that are commonly tested
- Disclose in writing any personal or family interest in a client's property. If you buy from or sell to a client, withdraw from the agency and advise an independent valuation.
- Secret commissions are forbidden. A fee, gift or 'referral' from a developer, contractor, lawyer or landlord must be disclosed and consented to; otherwise it is a secret profit recoverable by the principal.
- Clients' and tenants' money belongs in a designated client account, separately identified in the books, never in the firm's office account.
- Confidentiality survives the end of the retainer.
- Do not advertise misleadingly or tout for business, and do not solicit a client you know is under an active retainer with another firm without informing that firm.
- Discipline runs from complaint to investigation to tribunal, with sanctions from caution and fine to suspension and striking off the register.
Worked example
A developer offers your agency an extra 2% 'marketing support' if you steer buyers to its estate, on top of the 5% paid by buyers. Accepting without disclosure is a secret profit. It must be declined, or disclosed in writing to each buyer and client with consent obtained, and reflected in the fee notes and records.
Traps
Calling a kickback a referral; 'disclosing' only after the money is taken; mixing client funds with office funds; discussing another member's client matters.