RULES OF CONDUCT API 2005
The
Rules of Conduct are an interpretation and expansion of the Code of
Ethics of the Institute. These Rules are mandatory for all Members.
Rule
1: Professional and Personal Conduct
1.1 Members
shall conduct their professional duties and activities in a manner
that reflects credit upon themselves and their profession. High
standards of competence, honesty, loyalty, integrity and fairness
shall be observed at all times.
1.2
Members are bound by and agree to abide by all Fundamental Rules
which include the Code of Ethics, Rules of Conduct, Constitution,
By-Laws, Practice Standards and compliance with CPD as adopted
by the Institute.
1.3
Members shall not accept an assignment that is contingent upon or
influenced by any condition or requirement for a predetermined result
where the exercise of objective judgment is required.
Members
shall maintain the strictest independence and impartiality in
undertaking their professional duties. To this end, no Member shall:
(a)
adopt the role of advocate in a case where their duty is to exercise
independence and impartiality;
(b)
(i) act as an advocate and as an expert in the same matter;
(ii)
act as an advocate in a matter where another member of the same firm
has acted as an expert in the same matter
(iii)
act as an expert in a matter where another member of the same firm
has acted as an advocate in the same matter.
(c)
allow the performance of their professional duties to be improperly
influenced by the needs or
preferences of a client or other party;
(d)
rely upon critical information supplied by a client without
appropriate qualification or confirmation
from other sources;
(e)
act in any other way inconsistent with the duties of independence and
impartiality.
Same
Matter is defined as being; A matter in which it may reasonably be
construed that the member, or another representative from the
member's firm, has acted or is acting as either an expert or advocate
in a related context concerning the subject property.
1.4
Members shall not provide any advice or make any statement without
reasonable foundation unless
it is appropriately qualified or limited.
1.5
Members shall not claim or present professional qualifications which
may be subject to erroneous interpretations or which they do not
possess.
1.6
Members shall not accept instructions beyond their competence;
however, assignments may be undertaken in conjunction with a person
having the required competence after disclosure to the client.
1.7
Fees may be negotiated with a client on any agreed basis that does
not:
a)
infringe any statute, rule of conduct or regulation;
b)
depend on a client-nominated particular outcome of any valuation or
other independent objective advice.
1.8
No Member shall pay by commission, allowance or other benefit any
person who may introduce clients to them without appropriate
disclosure.
1.9
Members shall not accept payment or favours from another party which
may affect their relationship
with a client.
1.10
A valuation shall not be performed by a Certified Practising Valuer
without an inspection of the property concerned. The inspection shall
be sufficiently comprehensive to enable the Member to complete the
valuation in accordance with the Practice Standards of the Institute.
Where, however, a client’s instructions expressly exclude the
requirements for a comprehensive inspection
and these instructions are accepted by the member then the
limitations to the valuation must be clearly acknowledged by the
member and client.
1.11
Members shall not reproduce any work or reference prepared and
presented by any other Member,
person, body or authority which creates the impression that it is
their own.
1.12
Members shall be fair and honest in any public criticism of the
Institute or fellow Members.
1.13
Members shall include in reports, references to any relevant
assumptions, conditions, requirements and limitations arising from
their instructions or inquiries, or imposed from any other source.
1.14
Members shall retain for as long as legally required, adequate file
notes which substantiate their opinions by way of inquiry, objective
comparison, deduction and calculation.
1.15
Where information critical to the assignment being undertaken is
relied upon by a Member, the source of that information should either
be disclosed in the relevant report or contained in the working
papers supporting the relevant report and be appropriately attributed
in either case, unless the information is protected by
confidentiality, or the member is prevented by privacy or other like
laws from disclosing or referring to the source.
1.16
Members shall accept full responsibility for the content of their
reports. Where the report relies on
professional opinion from outside experts, the degree of reliance
must be indicated.
1.17
Co-signatories to reports shall indicate the extent of their
involvement or the capacity in which they are signing.
1.18
Members will fully cooperate with any request for information or
directive from the Institute where a complaint has been lodged or
where there is deemed to be a prima facie breach of the Rules of
Conduct.
1.19
Members shall not maliciously or carelessly do anything to injure,
directly or indirectly, the reputation,
prospects or business of other Members.
1.20
Instructions accepted by Members should preferably be in writing
and/or be confirmed in writing by the Member in sufficient detail to
avoid any misinterpretation.
Any
variations or extensions of the original instructions should
similarly be confirmed in writing.
1.21
A Member who is convicted of an offence involving dishonesty is in
breach of these Rules of Conduct.
Rule
2: Conflict of Interest
Members
shall not accept or carry out any instruction where there may be, or
may reasonably be construed to be a conflict of interest Members
shall withdraw from any instruction if a conflict of interest arises
or becomes known after an instruction has been accepted. An exception
to this rule
is where the conflict of interest is disclosed to and accepted by the
party or parties.
2.1
Where a conflict of interest arises or could arise a Member shall
promptly disclose the relevant facts
to the client and where appropriate:
a)
advise the client to obtain independent professional advice;
b)
inform the client that neither the Member nor the firm can act or
continue to act for the client
unless the appointment or instruction is confirmed in writing
acknowledging the actual or
potential conflict of interest; and
c)
disclose the matter in any relevant document or report.
2.2
Where a conflict arises or could arise between the interests of
different clients of a Member or a
firm or company of which a Member is a partner director or employee,
a Member shall promptly disclose
the relevant facts to the instructing client and where appropriate:
a)
advise the client to obtain independent professional advice;
b)
inform the client that neither the Member nor the firm can act or
continue to act for the client unless the appointment or instruction
is confirmed in writing acknowledging the actual or potential
conflict of interest, and disclose the matter in any relevant
document or report.
Rule
3: Client Relationships
3.1
Members shall not disclose to any other person or party any
confidential information provided directly
or indirectly by a client or to a client without the permission of
the client except where there
is a legal requirement for disclosure or the information is of public
or common knowledge.
3.2
Members shall conduct themselves in a manner and demeanour which is
neither detrimental to their profession nor likely to lessen the
confidence of clients or the public in the Institute or the
profession.
3.3
Members shall act promptly and efficiently in the servicing of the
client’s instructions.
3.4
Members shall, in the case of unavoidable delay, communicate to the
client the progress being made
in respect of the instructions issued to the Member.
3.5
Consistent with the duty of a Member to preserve the confidentiality
of a client’s affairs, a Member shall not accept a retainer to
act for another person in any action or proceedings against, or in
conflict with, the interests of the client.
Rule
4: Advertising
4.1
Any advertisement by a Member must not reflect adversely on the
professional integrity of the Institute or its Members.
4.2
Members shall not include exaggerated or false claims in any
advertisement.
Rule
5: Reference to the Institute
5.1
No Member or Members shall:
a)
purport to represent the views of the Institute unless expressly
authorised to do so
b)
publicise the Institute or its Members generally in terminology which
has not either already appeared
in an advertisement published by the Institute or received the
approval of the Institute.
Rule
6: Inducements for the Introduction of Clients
6.1
No Member shall invite instructions for work except in accordance
with these Rules.
6.2
No Member shall directly or indirectly exert undue pressure or
influence on any persons, whether by the offer or provision of any
payment, gift or favour or otherwise, for the purpose of securing
instructions for work, or accept instructions from any person where
there is reason to believe that undue pressure or influence may have
been exerted by a third party in expectation of receiving
a reward for the introduction.
Rule
7: Departure Provisions
7.1
Where a Member considers circumstances exist that warrant departure
from or non-compliance with any rule herein, the Member’s
report shall include a statement that outlines the reasons for the
departure or non-compliance and any impact on the content of the
report.