The Ethics, Rules of Conduct and Professionalism competency is applicable to all APC candidates and is regarded as being the pass or fail area of the APC. Candidates must note that any failure to answer an Ethics question correctly will result in an automatic referral of the candidate. To achieve this competency you will need to demonstrate your understanding on ethical issues and demonstrate how you ensure compliance with the legislation and legal systems in your country of practice.
From my experience of helping colleagues pass their APC over the last 9 years, the following Questions & Answers have helped around 90% of my colleagues pass their APC first time and I really hope you find this a useful revision tool when preparing for your Final Assessment Interview.
RICS APC Ethics Questions & Answers You Must Know
Question) Please explain your understanding of the term conflict of interest?
Answer) A conflict of interest is where someone in a position of trust has competing personal or professional interests making it difficult for them to fulfil their duties impartially. An existing relationship will result in reduced impartiality and Chartered Surveyors have an obligation to make clients aware of this and if necessary decline work opportunities where a conflict of interest occurs.
Question) How could the conflict of interest be managed internally if two separate departments were working for the same client?
Answer) This could be manged by putting the following measures in place:-
- Ensuring exclusivity of staff to each department.
- Ensure separate communication lines are reporting back into the client.
- Separate the geographical locations of each department.
- Sign team members up to non disclosure agreements.
- Monitor the potential conflict and keep the client updated.
Question) If the client was insistent that you worked for them despite an existing conflict of interest, how would you proceed?
Answer) I would firstly check the clients understanding around the conflict of interest to ensure they understood the implications regarding the potential risk for reduced impartiality. A letter of instruction to continue would be required from the client. I would then discuss the working procedures to manage the conflict of interest and agree this formally in writing with the client.
Question) Please explain your understanding of the Main Principles of the Bribery Act?
Answer) Offences under the Bribery Act Include:-
- Making a bribe.
- Receiving a bribe.
- Bribery of a foreign public official.
- It applies to all UK Entities and includes associated persons.
Firms must ensure they can demonstrate the six principles of prevention are in place which are made up of:-
- 1. Proportionate Procedures
- 2. Top Level Commitment.
- 3. Risk Assessments.
- 4 Due Diligence.
- 5 Communication.
- 6 Monitoring & Review.
Question) Under the Bribery Act, under what circumstance is a facilitation payment permitted?
Answer) The only circumstance in which it is OK to make a facilitation payment is when you are under duress where there is a real and present risk or danger to “life, limb or liberty”. If you or your companions are under immediate physical threat you should put safety first, make the payment and report the matter immediately or as soon as is practicable to your manager or your ethics compliance contact.
Question) You are attending a Main Contractor organised business conference where it is announced that you have been randomly selected as the winner of this months prize draw. It is an I-pad air of significant value. How would you act in this scenario?
Answer) I would be extremely uncomfortable accepting the prize in this scenario. The prize is of a significant value and could be interpreted as a bribe. Furthermore due to working on a project with the Main Contractor at the time of this scenario, accepting the prize would have been highly inappropriate and could be interpreted as having an affect on my business conduct during the project. I would respectfully decline the prize and suggest that this is made as a charitable donation to a charity of the Main Contractor’s choice. I am aware that bribes are commonly distributed as random prizes and due to the seriousness of this incident I would report this to my line manager.
Question) You receive an invite to attend the Theatre with some members of your Project Team but they dropped out due to illness at the last minute, would you still attend?
Answer) In the first instance I would declare this hospitality on my companies gifts and hospitality register. Assuming the invite was approved and I was authorised to attend, I would need to decline the invite due to the Project Team dropping out at the last minute as this would no longer be classed as a genuine business event.
Question) You are bidding for a project and the client advises that if you reduce your fee bid by £3,000 you will be first place and win the tender, how would you advise the client?
Answer) This is an extremely sensitive issue in that this offer, if accepted would result in an unfair competition and would not be acting with integrity or with respect of competing firms. Taking a long term view, it is not sustainable to conduct business in this manner and would also devalue the services of the profession if repeated. I could advise that I would need to reduce my scope of services so that this is reflective of the fee reduction but in the first instance this offer from the potential client could also be interpreted as a bribe.
Question) A client takes you out for lunch after a business meeting, where they continue to discuss business. The bill for the lunch comes to £200. What should you do now?
Answer) This lunch had a legitimate business purpose, so it’s fine to accept the hospitality however the client should have considered how a £200 bill for lunch could be perceived and have chosen a more modest restaurant. Given the size of the bill, it must be declared on the hospitality register and I would make my line manager aware immediately afterwards. I would offer to reciprocate but ensure this is carried out in a more modest manner as the lavishness of the restaurant could be interpreted as inappropriate and disproportionate.
Question) A newly appointed project manager working for your Client’s organisation advises that they are concerned about the terms their predecessors agreed with you. They state not to expect the same terms and advise that if you give a 20% discount they will renew your contract. How would you respond?
Answer) Although this client is asking for a steep discount, it’s more a matter of them trying to renegotiate contract terms with us so this can’t be classed as a bribe. I would advise that we would consider offering the saving but the level of service and resource would need to be reviewed inline with the reduction. I would also evaluate if the original fees can still be considered as good value and a fair and reasonable sum. Providing this is still the case then any significant fee reduction would result in a devaluation of my services and profession. It may also not be sustainable and in the clients interests if I cannot provide a high standard of service that is required. A fee profile and resource schedule would need to be prepared to determine if the saving and adequate level of service can be offered. I may need to decline this opportunity if I am unable to offer the required level of service.
Answer) I could not offer advice on my own without PI insurance being in place. If I did have my own PI cover I would ensure that the information and advice provided was offered at the same level and subject to thorough checking processes as is the case under a regular client appointment regardless of this being for a friend. If I am not comfortable acting for them, I would advise them to use the RICS ‘find a surveyor scheme’.
Question) Assuming you were successful in getting chartered, how would you deal with a situation such as a friend who asks you to provide them with QS advice?
Question) A tender is in progress for which you have submitted a bid. You get a call from the client who advises that they are involved as a parent in a junior theatre group. The client says they have read about your firm’s community initiatives and ask you to sponsor their annual performance. They advise that they are desperately short of funds and that they have donated money themselves. How would you advise the client in this scenario?
Answer) The client may not be soliciting a bribe here however as a tender is in progress, any sponsorship made could be perceived as an undue influence and a bribe. In the first instance you would explain this to the client and decline to make a donation. To ensure transparency, you would also report the request to your line manager. Depending on advise from Senior Management it may be appropriate to escalate this to our firms whistleblowing policy.
Question) A contractor invites you to lunch to a restaurant and advises they’ve got two Michelin stars and a wine list second to none. They say they are keen to discuss the details of their tender they are about to submit for the project you are working on. How would you respond?
Answer) Going to what sounds like a lavish lunch paid for by a bidder in the middle of a tender process is against Company policy and could be an offence under the UK Bribery Act. If this were the first time, it would be OK just to decline and explain that such an invitation is inappropriate. However if the contractor is persistent and there is a red flag in that he wants to discuss things that he cannot put in writing, I would report this infringement.
Question) The partner says you have spent all the fees on the job, the final accounts are still to be agreed and some areas are still to be re-measured according to the contractor, what should you do?
Answer) In this scenario I would need to ensure that I do not lower my level of services despite the fees being expended. I would look to investigate why all the fees have been spent and determine any errors in our fee calculations. Measures should be put in place to ensure this does not happen again however if it is due to additional services being provided, I would provide all the relevant details to my director to prepare a claim for additional fees. I would ensure that I keep track of all fee spending and of all works not included in our scope of services.
Question) What are the New Rules of Conduct?
- Rule 1. Members and firms must be honest, act with integrity and comply with their professional obligations, including obligations to RICS.
- Rule 2. Members and firms must maintain their professional competence and ensure that services
- are provided by competent individuals who have the necessary expertise.
- Rule 3. Members and firms must provide good-quality and diligent service.
- Rule 4. Members and firms must treat others with respect and encourage diversity and inclusion. Rule 5. 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.
Question) Please explain your understanding of Rule Number 1?
Answer) Having reviewed the example behaviours in adhering to Rule 1, RICS Members and firms should
not allow themselves to be influenced improperly through the acceptance of work referrals, gifts
or hospitality. Members and Firms must also be sure to identify conflicts of interest and not provide services or advice where these conflicts of interest occur. This could be a scenario where you have reduced impartiality due to an existing relationship, for example being friends with a Main Contractor who has subsequently been selected to submit a tender would form a conflict of interest.
Question) Please explain your understanding of the professional obligations of members?
Answer) The professional obligations of members include:-
- 1. Members must comply with the CPD requirements set by the RICS which requires 20 hours of CPD for each calendar year, 10 hours of which must be formal CPD.
- 2. Members must cooperate with RICS.
- 3. Members must promptly provide all information reasonably requested by the Standards and Regulation Board, or those exercising delegated authority on its behalf.
Question) What are the professional obligations of firms?
Answer) The professional obligations of firms include:-
- 1. Firms must publish a complaints-handling procedure, which includes an alternative dispute resolution provider approved by RICS, and maintain a complaints log.
- 2. Firms must ensure that all previous and current professional work is covered by adequate and appropriate professional indemnity cover that meets the standards approved by RICS.
- 3. Firms with a sole principal must make appropriate arrangements for their professional work to continue in the event of their incapacity, death, absence from or inability to work.
- 4. Firms must cooperate with RICS.
- 5. Firms must promptly provide all information reasonably requested by the Standards and Regulation Board, or those exercising delegated authority on its behalf.
- 6. Firms must display on their business literature, in accordance with RICS’ published policy on designations, a designation to denote that they are regulated by RICS.
- 7. Firms must report to RICS any matter that they are required to report under the Rules for the Registration of Firms.
RICS APC Ethics Questions & Answers PDF
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