RICS APC RICS Rules of Conduct & Ethics 2 — Questions and Answers
Question 1: What is the RICS 'professional indemnity insurance' (PII) requirement for regulated firms?
- RICS-regulated firms must maintain adequate PII cover to protect clients from financial loss due to professional negligence (Correct answer)
- PII is optional for small firms with fewer than 5 surveyors
- PII only applies to firms undertaking valuation work
- RICS provides collective PII cover for all member firms centrally
Correct answer: RICS-regulated firms must maintain adequate PII cover to protect clients from financial loss due to professional negligence
RICS requires all regulated firms to maintain qualifying professional indemnity insurance that meets RICS minimum requirements. This protects clients who suffer financial loss due to errors, omissions, or negligent advice. The minimum level of cover depends on the firm's fee income and the nature of its work.
Question 2: How many hours of Continuing Professional Development (CPD) does RICS require qualified members to complete per year?
- 20 hours per year, of which at least 10 must be formal/structured CPD (Correct answer)
- 40 hours per year with no distinction between formal and informal
- 10 hours per year for all grades of membership
- 50 hours over a 3-year rolling period with no annual minimum
Correct answer: 20 hours per year, of which at least 10 must be formal/structured CPD
RICS requires members to complete a minimum of 20 hours CPD per year. At least 10 of these must be formal/structured CPD (e.g., seminars, courses, webinars with assessed learning). The remaining 10 can be informal (e.g., reading, peer discussions). CPD records must be maintained and are subject to audit.
Question 3: What should an RICS member do if they are asked by a client to do something they believe is unethical?
- Refuse to comply and advise the client that they cannot carry out the instruction, explaining why it conflicts with professional obligations (Correct answer)
- Carry out the instruction if the client insists and it is not technically illegal
- Ask a colleague to carry out the instruction on their behalf
- Report the client to the police immediately
Correct answer: Refuse to comply and advise the client that they cannot carry out the instruction, explaining why it conflicts with professional obligations
RICS members must not carry out instructions that conflict with professional ethics, regardless of client pressure. The obligation to act with integrity takes precedence over the obligation to follow client instructions. The member should explain their position clearly and, if necessary, decline the instruction and cease acting.
Question 4: What is RICS's Regulatory Board responsible for?
- Setting and enforcing the regulatory requirements for firms, monitoring compliance, and investigating and disciplining misconduct (Correct answer)
- Delivering APC assessments and moderating the assessment process
- Publishing valuation standards and technical guidance
- Negotiating CPD content with universities and training providers
Correct answer: Setting and enforcing the regulatory requirements for firms, monitoring compliance, and investigating and disciplining misconduct
The RICS Regulatory Board oversees the regulation of RICS-regulated firms and members. It sets regulatory requirements, monitors compliance through audits and reporting, investigates complaints, and has the authority to impose sanctions including reprimand, fines, and expulsion from RICS.
Question 5: What is the significance of Rule 5 of the RICS Rules of Conduct — 'act in the public interest'?
- It requires members to consider the wider impact of their professional advice on third parties and society, not only the interests of their immediate client (Correct answer)
- It requires members to provide free advice to local communities
- It means RICS members must always prioritise public sector clients over private clients
- It only applies to members working in planning or public authority roles
Correct answer: It requires members to consider the wider impact of their professional advice on third parties and society, not only the interests of their immediate client
Rule 5 reflects the concept that professional status carries a broader responsibility. RICS members' advice on property, land, and construction affects communities, the environment, and the wider economy. Chartered surveyors must balance client obligations with their duty not to harm third parties or undermine public trust in the profession.
Question 6: What is a 'whistleblowing' obligation in the context of RICS professional conduct?
- Members are expected to report serious misconduct by colleagues or within their firm to RICS, particularly where public harm may result (Correct answer)
- Whistleblowing refers to advertising professional services in a way that does not mislead the public
- Members must report all client complaints to RICS within 28 days
- Whistleblowing only applies to financial fraud situations
Correct answer: Members are expected to report serious misconduct by colleagues or within their firm to RICS, particularly where public harm may result
RICS expects members to speak up about serious misconduct they witness in their professional environment, particularly where clients or the public could be harmed. This duty to report sits alongside RICS Rule 1 (integrity) and Rule 5 (public interest). RICS provides guidance and whistleblowing protections for members who raise concerns.
RICS APC RICS Rules of Conduct & Ethics 2
What is the RICS 'professional indemnity insurance' (PII) requirement for regulated firms?