Definition

In an APC context, checking your employer's compliance with the RICS Rules of Conduct (effective 2 February 2022) means assessing whether the firm's procedures and culture are consistent with the five Rules: Honesty and Integrity, Competence, Service, Respect, and Responsibility. Both individual members and regulated firms are bound by the Rules, and an individual cannot escape personal responsibility by pointing to an employer's instruction.

Why this matters for Ethics, Rules of Conduct & Professionalism

  • Personal accountability: a member who follows an employer's unethical instruction can be disciplined by RICS even if the instruction came from a senior partner.
  • Whistleblowing obligation: where a member becomes aware of serious non-compliance, the Rules create a responsibility to address it, including reporting to RICS if internal routes have failed.
  • APC evidence: assessors frequently ask candidates to describe how their firm demonstrates compliance; an inability to answer raises a red flag.
  • Understanding employer compliance is essential for Level 3 candidates who may be expected to take on supervisory or compliance responsibilities.

Key principles

Areas to check in your firm

Key areas to assess include: conflicts of interest procedures (does the firm run conflict searches and maintain a register?); professional indemnity insurance (is adequate PI cover held and renewed annually?); complaints handling (is there a documented procedure and a redress scheme?); CPD (does the firm track the 20-hour annual minimum?); and AML compliance (is there a nominated MLRO and written AML policy?).

Red flags indicating non-compliance

Indicators of non-compliance include: acting for both sides without conflict checks; pressure to sign off work outside your competence; ignoring or burying client complaints; undisclosed referral fees; absence of a written anti-bribery policy; and no induction training on the Rules of Conduct. Any of these should prompt the candidate to raise concerns internally before they attract regulatory sanction.

What to do if you identify non-compliance

The first step is to raise the concern internally using the firm's whistleblowing or escalation procedure. If the concern relates to a serious breach that cannot be resolved internally, Rule 5 (Responsibility) requires the member to act in the public interest, which may include reporting to RICS Regulation. Resignation may be appropriate if continuing employment requires participating in conduct that would breach the Rules.

Distinction between firm and individual obligations

The Rules of Conduct apply to both individual members and regulated firms, but obligations differ. A firm must maintain systems ensuring compliance across all staff; an individual must comply personally. Where a firm lacks adequate procedures, the firm is in breach; where an individual acts dishonestly, the individual is in breach. Both can face sanctions simultaneously.

Relevant RICS guidance and legislation

  • RICS Rules of Conduct (effective 2 February 2022) — applies to both individual members and regulated firms; five rules with specific obligations on each.
  • RICS professional statement: Countering bribery and corruption, money laundering and terrorist financing — sets mandatory AML policies and procedures for regulated firms.
  • Money Laundering Regulations 2017 (as amended) — requires a nominated MLRO and written AML policies.
  • Public Interest Disclosure Act 1998 — provides statutory protection to employees making qualifying disclosures about their employer's wrongdoing.
  • Bribery Act 2010 — Section 7 corporate offence: a surveyor working for a non-compliant firm may be at risk even if they did not personally bribe anyone.

Ethics and Rules of Conduct angle

Rule 5 (Responsibility) requires members to act in the public interest and take responsibility for their own conduct and that of those under their supervision; this is directly engaged when a member discovers employer non-compliance. Rule 1 (Honesty and Integrity) means a member cannot turn a blind eye to dishonest practices. Together, Rules 1 and 5 create a positive duty to act on non-compliance, not merely to avoid participating in it.

APC-style Q&As

Q (Level 1)Who is bound by the RICS Rules of Conduct — individual members, firms, or both?

Both. Individual RICS members and RICS-regulated firms are each independently bound by the Rules of Conduct. A firm's breach does not absolve an individual, and an individual's breach does not automatically make the firm liable, though the firm may also have failed to maintain adequate systems.

Q (Level 1)Name three areas of firm compliance that an employed RICS member should be able to verify.

Professional indemnity insurance (is it in place and adequate?); complaints handling procedure (is there a documented procedure and redress scheme?); and AML procedures (is there a nominated MLRO and written AML policy?). CPD tracking and conflicts of interest procedures are also key areas.

Q (Level 2)A senior colleague pressures you to sign off a valuation report they prepared but that you believe contains an error. What do you do?

I refuse to sign off work I believe is incorrect. Rule 2 (Competence) requires me to act within my competence, and Rule 1 (Honesty and Integrity) prevents me certifying something I believe to be wrong. I would raise the concern with the colleague and, if unresolved, escalate to the responsible principal or compliance partner. If the instruction to sign without amendment persists, I would not sign it. This is a direct obligation under the Rules of Conduct, not insubordination.

Q (Level 2)How does your firm demonstrate compliance with the RICS Rules of Conduct in its day-to-day operations?

(example) My firm has a documented conflicts procedure, a gifts and hospitality register reviewed quarterly, an AML compliance officer who signs off all new client onboarding, and a complaints handling procedure referenced in our standard terms of engagement. All staff receive annual training on the Rules of Conduct and the firm's anti-bribery policy, forming part of our regulated firm obligations under the RICS Rules of Conduct (effective 2 February 2022).

Q (Level 3)You discover that your firm has been accepting referral fees from a developer without disclosing them to clients. The practice has been in place for several years. What steps do you take?

Undisclosed referral fees breach Rule 1 (Honesty) and Rule 3 (Service) by creating a conflict. I would document what I know and raise the matter formally with the compliance partner or managing director, requesting that the practice cease and that affected clients be notified. If the firm refuses to act, Rule 5 obliges me to consider reporting to RICS Regulation. I would take legal advice on my position and any whistleblowing protections under the Public Interest Disclosure Act 1998 before doing so.