APC Series: New year, new rules of conduct

The Royal Institution of Chartered Surveyors Rules of Conduct aim to promote the highest ethical standards in all areas of the profession, as well as supporting positive change in the built and natural environments. This is a requirement of the RICS’ Royal Charter, which requires RICS to maintain the usefulness of the profession for the public advantage. In 2007, the RICS published the Rules of Conduct for Members and for Firms. These were supplemented by the Global Professional and Ethical Standards, which were published in 2009. The RICS undertook a substantial period of consultation in 2019, before launching the new Rules of Conduct. The key challenges highlighted by the consultation included: Simplifying the framework of the Ethical Standards and Rules of Conduct to make them easy for members and firms to follow. This, in turn, helps to raise public and client confidence in the surveying profession. Providing clear examples and case studies to support members’ ethical decision making. Focusing on respect, diversity and inclusion, which have previously not explicitly been part of the Rules of Conduct or Ethical Standards. Incorporating guidance on the use, risks and benefits of evolving data and technology. Tackling global challenges, including sustainable development and climate change. The new Rules of Conduct replace the existing Rules of Conduct for Members and for Firms and the Ethical Standards. They apply to all RICS members and regulated firms globally, although the Rules must be applied within the legal framework of the member’s or firm’s country of practice. The new Rules of Conduct take effect on 2 February 2022. Until then, the existing Rules of Conduct for Firms and for Members and the Global Professional and Ethical Standards apply. What is required? The new Rules of Conduct are built on the fundamental principles of honesty, integrity, competence, service, respect and responsibility. They provide a framework for ethical and professional decision making, requiring surveyors to apply professional judgment to the five fundamental rules. Only serious breaches of the Rules of Conduct are likely to result in disciplinary action. Minor breaches can instead be dealt with through members’ self-correction or improved processes within firms. Members and firms should be able to justify their actions and how they have complied with the Rules, particularly if an example behaviour has not been followed (for a legitimate reason). There are five new Rules of Conduct (see below), supported by a list of example behaviours demonstrating compliance by the firm or member with the relevant rule. The Rules are supplemented by Appendix A, which provides a list of mandatory professional obligations of members and firms to RICS. RICS members must comply with CPD requirements, co-operate with RICS and provide all information reasonably requested by the RICS Standards and Regulation Board. RICS regulated firms must: Publish a complaints handling procedure; Ensure they have adequate professional indemnity insurance; Make appropriate arrangements for a locum if a firm has a sole principal; Co-operate with RICS; Provide all information reasonably requested by the RICS Standards and Regulation Board; Appropriately display the “regulated by RICS” designation on business literature; Report any relevant matters under the Rules for the Registration of Firms. The new rules in detail Rule 1 includes example behaviours such as: Not misleading others and avoiding others being misled; Dealing appropriately with gifts, hospitality, referrals and payments; Dealing with conflicts of interest ethically and professionally; Advising based on evidence; Being open and transparent over fees and services; Not taking unfair advantage of others; Maintaining confidentiality; Handling client money appropriately; Being aware of and avoiding financial crime, money laundering, bribery, tax evasion and corruption. Rule 2 includes example behaviours such as: Ensuring employees and contractors are competent; Reflecting on the impact of advice; Undertaking sufficient CPD; Ensuring knowledge is up-to-date. Rule 3 includes example behaviours such as: Defining client needs and objectives; Setting out the scope of service, limitations and timescales; Working diligently and in a timely manner; Providing all material information to clients; Clear communication; Ensuring any referrals or introductions are in the clients’ best interests; Keeping proper records; Minimising harm and delivering balanced benefits to clients; Explaining the risks and benefits of technology; Ensuring high standards of data protection; Having effective quality assurance processes. Rule 4 includes example behaviours such as: Respecting others; Avoiding discrimination; Not bullying, victimising or harassing; Avoiding modern slavery; Reporting abusive labour practices; Working co-operatively; Providing an inclusive working culture; Avoiding unconscious bias. Rule 5 includes example behaviours such as: Raising concerns; Supporting others who have raised concerns; Responding to complaints promptly, openly and diligently; Ensuring an alternative dispute resolution provider is used for complaints that cannot be resolved by the firm; Making reasonable adjustments if required; Managing professional finances responsibly; Reporting breaches of the Rules of Conduct. Members and firms are encouraged by RICS to use the “decision tree” when working through an ethical dilemma. There are also 12 case studies available on the RICS website, which are a useful tool for members to work through. These include scenarios such as advising a client on negotiating with a charity, acting for a developer where there are local objections to a proposal and dealing with harmful social media posts. The new Rules of Conduct provide a streamlined framework and detailed guidance on how to act professionally and ethically. Firms and members should be aware of them, using their “gut” to guide ethical decision making and speaking out where required. Being familiar with the new Rules and supporting behaviours will help firms and members to be compliant, bearing in mind that ethics can be a grey area with no definitive right or wrong answer in some scenarios. The new Rules of Conduct Members and firms must be honest, act with integrity and comply with their professional obligations, including obligations to RICS. Members and firms must maintain their professional competence and ensure that services are provided by competent individuals who have the necessary expertise. Members and firms must provide good-quality and diligent service. Members and firms must treat others with respect and encourage diversity and inclusion. 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. Top candidate tips From Alice McCusker BSc MSc MRICS, chartered surveyor at MJ Group International You can all do this, so believe in yourself. I was quizzed on International Property Measurement Standards, so make sure you know them. If you don’t know the answer, don’t guess – either ask to come back to the question or refer to the RICS guidelines on where you would find the answer, be honest and say you need to double check. Make sure your Wi-Fi connection is strong – I bought an ssthernet cable as my Wi-Fi wasn’t great. Do loads of mock interviews with colleagues or external people. Take it easy on the day of and day before interview as you need a fresh mind. I did focused deep breathing for 10 minutes before the interview and it was amazing how much it calmed the nerves before the interview. Work really hard, but take breaks. Professional guidance alert International Cost Management Standard (ICMS) 3  International Property Measurement Standard All Building Classes consultation  RICS Valuation – Global Standards (Red Book Global) 2022 update consultation Further reading and resources New Rules of Conduct  RICS Rules of Conduct webinar  Ethics decision tree  Jen Lemen BSc (Hons) FRICS is a partner at Property Elite Photo © Jeff Blackler/Shutterstock