01 Professional Practice Flashcards
1
Q
What is the purpose of the RICS?
A
- Regulate and promote the surveying profession
- Maintain the highest educational and professional standards
- Protect clients and consumers via a strict code of ethics
- Provide impartial advice and guidance
2
Q
What is the purpose of the Royal Charter?
A
- Changes a body from a collection of individuals into a single legal entity
- Written description of the RICS’ powers (e.g. self-regulation) and obligations (e.g. advancement of knowledge, appointment of a Governing Council etc.)
- Requires the RICS to develop the profession for the public advantage
- Allows members to use the term ‘chartered’ in their job title
3
Q
What are bye-laws?
A
A list of laws applied internally using powers granted by the Royal Charter (aka the RICS’ constitution)
4
Q
Explain the relationship between the Privy Council and the RICS.
A
- Privy Council - a body set up in the early days of the monarchy to advise the king/queen on matters of state and not put before parliament
- Any changes to the bye-laws have to be approved by the UK Government, through the Privy Council, even if the changes have already been approved by a majority vote of RICS members
5
Q
What is the RICS Governing Council?
A
- Manages the Royal Charter Obligations, setting direction and strategy
- Establishes the Regulatory Board, Management Board and other committees (e.g. Audit Committee)
6
Q
How is the RICS Governing Council elected?
A
- Elections are held every two years and are open to all FRICS, MRICS and AssocRICS members
- Comprises of members from world regions, specific countries, regions of England, the professional groups, Matrics and members as a whole
- All Members can vote in the whole membership category
- For geographical seats, only Members based in that geographical area may vote
7
Q
How many RICS regional boards are there in the UK?
A
Nine regional boards:
- East Midlands
- East of England
- London
- North East
- North West
- South East
- South West
- West Midlands
- Yorkshire and the Humber
8
Q
How does the RICS communicate with its members?
A
Listed within the Rules of Conduct:
- Post
- Fax
- Telephone
- In person
9
Q
What are the functions of professional groups?
A
- Drafting, reviewing and maintaining professional guidance internationally
- Setting up the standard of professional competence required for successful qualification into RICS membership and the different designations (e.g. chartered building surveyor, chartered facilities management surveyor etc.)
- Contribute to policy formation
- Commission and undertake specialist research
- Contribute to CPD events
10
Q
What professional groups are there within the RICS?
A
Three sectors contain different RICS professional groups:
- Land (e.g. environment, minerals and waste, planning and development etc.)
- Property (e.g. valuation, facilities management, residential property etc.)
- Construction (e.g. building surveying, building control, project management, quantity surveying etc.)
11
Q
How many professional groups can a member of the RICS belong to?
A
- A member is automatically attached to the professional group through which they qualified (e.g. building surveying) as part of the annual subscription, i.e. their primary professional group
- To use an alternative designation of a specific professional group, the member must have achieved the relevant RICS qualification through that group
12
Q
What is RICS Matrics?
A
- Established to support, develop and provide networking for its members, who are either entering or not long qualified in the surveying profession
- Organises networking opportunities, charity events and CPD, as well as providing a voice for individuals new to the profession
13
Q
What is Lion Heart?
A
- Charity funded through past and present RICS members
- Provides support to members (past and present) and their families, including financial support, health and wellbeing packages and work-related support
14
Q
What is the BCIS and what is its relationship to the RICS?
A
- Building Cost Information Service (BCIS) is published by the RICS
- It provides independent cost and price information for key areas in the construction industry
15
Q
Who is the current RICS President?
A
Kathleen Fontana
16
Q
Who is the current RICS Vice-President?
A
Ann Gray
17
Q
Who is the current RICS President Elect?
A
Clement Lau
18
Q
Who is the current RICS Chief Executive Officer?
A
Dr Sean Tompkins
19
Q
Who is the chair of RICS North West regional board?
A
Stephen Ashworth
20
Q
Who is the chair of the RICS Building Surveying faculty?
A
Alex Charlesworth
21
Q
Who is the chair of RICS Matrics?
A
James Baker
22
Q
What different types of professional guidance is published by the RICS?
A
- Practice Statements
- Codes of Practice
- Guidance Notes
- Information Papers
23
Q
What are the differences between Practice Statements, Codes of Practice, Guidance Notes and Information Papers?
A
- Practice Statements - provides members with mandatory requirements in order to comply with the RICS bye-laws and regulations in the interest of maintaining the highest professional standards
- Codes of Practice - documents approved by the RICS and endorsed by another professional body/stakeholder that provides recommended best practice to practitioners
- Guidance Notes - provides users with recommendations for accepted good practice as followed by competent and conscientious practitioners
- Information Papers - practice based information that provides users with the latest information and/or research
24
Q
Do you have to comply with Practice Statements, Codes of Practice, Guidance Notes and Information Papers?
A
- Practice Statements - mandatory
- Codes of Practice - mandatory or recommended good practice (will be confirmed in the document itself)
- Guidance Notes - recommended good practice
- Information Papers - information and/or explanatory commentary
25
Give some examples of Practice Statements, Codes of Practice, Guidance Notes and Information Papers related to your pathway.
1. Practice Statements - Property Measurement
2. Codes of Practice - Code of Measuring Practice
3. Guidance Notes - Dilapidations
4. Information Papers - Flat Roof Coverings
26
As a surveyor, why should you follow the guidance produced by the RICS?
If an allegation of professional negligence is made against a surveyor, the court is likely to take into account compliance with relevant professional standards published by the RICS in deciding whether or not the surveyor acted with reasonable competence
27
Who regulates members of the RICS and ensures they comply with the rules?
1. The RICS is a self-regulatory body, meaning members are not regulated by government but are internally monitored and inspected
2. The Regulatory Board helps regulate the profession, deciding on policy and overseeing the implementation of regulatory matters
3. The Conduct and Appeals Committee also help in regulating the profession
28
What are the RICS' principles for better regulation?
As determined by the Better Regulation Commission, a division of the UK Cabinet Office:
1. Proportionality
2. Accountability
3. Consistency
4. Targeting
5. Transparency
29
What are the rules of conduct for members?
1. Ethical behaviour - act with integrity and avoid conflicts of interest
2. Competence - carry out work with due skill, care and diligence
3. Service - carry out work in a timely manner and to the proper standards of service
4. CPD - comply with the RICS' CPD requirements
5. Solvency - ensure personal and professional finances are managed appropriately
6. Information to RICS - submit required information to the Regulatory Board in a timely manner
7. Co-operation - co-operate fully with RICS staff and the Regulatory Board
30
What are the rules of conduct for firms?
1. Professional behaviour - act with integrity and avoid conflicts of interest
2. Competence - carry out work with due skill, care and diligence
3. Service - carry out work in a timely manner and to the proper standards of service
4. Training and CPD - have in place procedures to ensure staff are properly trained and competent
5. Complaints handling - operate a CHP and maintain a complaints log
6. Clients' money - preserve the security of clients' money
7. PII - ensure all previous and current work is covered by adequate PII
8. Advertising - promote services only in a truthful and responsible manner
9. Solvency - ensure finances are managed appropriately
10. Arrangements to cover incapacity/death - sole practitioner has arrangements in place for such (aka 'locum agreement')
11. Designations - must display an approved 'regulated by the RICS' designation on literature
12. Information to RICS - submit required information to the Regulatory Board in a timely manner
13. Co-operation - co-operate fully with RICS staff and the Regulatory Board
31
What determines when a firm has to register with the RICS?
A firm must register for regulation by the RICS if it provides surveying services in the UK and at least 50% of its partners/directors are RICS members
NB: a firm can still register if at least one of its partners/directors is a member of the RICS
32
What are the benefits of RICS regulation?
1. Quality assures competence through adherence to the rules of conduct
2. Enhances members' professional status through providing confidence to consumers
3. Provides guidance, support and advice for members
33
If you were to leave here today and set up your own firm of Building Surveyors, what would you need to put in place?
1. Create a business plan
2. Register the new company on Companies House (if required)
3. Comply with the RICS obligations
4. Comply with statutory obligations
5. Take out sufficient insurance policies
34
Name some of the RICS obligations for starting a new surveying business.
1. Register for regulation - no cost unless the firm will hold clients' money
2. Ensure clients' money handling procedures as per RICS guidance are in place if applicable
3. Obtain sufficient professional indemnity insurance (PII)
4. Adopt a sufficient complaints handling procedure (CHP)
5. Ensure processes are in place ensure staff are adequately trained and competent (including CPD provision)
6. Comply with the rules of conduct for firms
7. Appoint a Contact Officer designated to be the main liaison point with the RICS
8. Appoint a locum if a sole practitioner
35
Name some of the statutory obligations for starting a new surveying business.
1. Comply with employment legislation (e.g. HASAWA, Equalities Act)
2. Follow statutory policies for staff recruitment, contracts, hours, pay, holidays, illness, paternity/maternity, grievances, disciplinary, dismissals, redundancy
3. Comply with other legislation:
* Data Protection Act 2018
* Money Laundering Regulations 2017
* Bribery Act 2010
36
Other than PII, what other insurances should you have in place when starting a new surveying business?
1. Public liability insurance
2. Employers' liability insurance
3. Business vehicle insurance
4. Buildings insurance
5. Contents insurance
6. Directors' and officers' insurance
7. Business interruption insurance
37
What is a locum agreement and what should it contain?
An agreement for a person to temporarily fulfil the duties of another due to their incapacity or death, including:
1. Description of duties
2. Timetable of work
3. Remuneration provisions
4. Restriction to create or incur liabilities beyond the powers granted in the agreement
5. Restriction to carry out work that creates a conflict of interest
6. Restriction to disclose confidential information
7. Insurance policy arrangements (must be maintained by locum)
8. Termination arrangements
38
What is the RICS Annual Return?
The RICS contacts all regulated firms on an annual basis to ensure all information held on the firm is correct and up-to-date, including details regarding PII, training, CHP and clients' money procedures (where applicable)
39
How does the RICS regulate firms?
RICS Regulation employs a risk-based approach to regulating firms and members, initially employing a Desk-Based Review (DBR), followed by a Regulatory Review Visit (RRV) if necessary
40
What is a Desk-Based Review (DBR)?
Following completion of the Annual Return, RICS Regulation may require a firm to undertake a DBR (in the form of an electronic questionnaire), which looks to determine what level of risk a firm or member poses based on their activities
41
Give some examples of high risk activities under a Desk-Based Review (DBR).
1. Holding clients' money
2. Undertaking general insurance mediation work (i.e. holds a DPB licence - see below)
3. Undertaking valuation work in accordance with the RICS Valuation Standards
42
What is a Regulatory Review Visit (RRV)?
Where serious issues have been identified in the DBR, the RICS will undertake a RRV, where an RICS staff member will visit the firm and review what action has been taken to address the findings of the DBR, as well as the procedures and controls in place to reduce risk
43
What is the Designated Professional Body (DPB) scheme?
Approved by HM Treasury, it enables the RICS to regulate its members for general insurance mediation activities on behalf of the UK Financial Conduct Authority (FCA)
44
For how long should files be preserved?
Files should be kept for at least the duration of the limitation period (6/12 years) depending how agreements are signed
NB: consideration must be given to the Data Protection Act, which states records should be kept for 'no longer than is necessary'
45
What does the RICS require when a firm handles clients' money?
Regulated firms that hold clients' money must pay a regulatory review fee on an annual basis (fee table can be downloaded from RICS website)
46
What is the purpose of a client holding account?
To preserve the security of clients' money entrusted to regulated firms against:
1. Insolvency of the firm
2. Misappropriation by any party
3. Death of a sole practitioner
47
What is the difference between a general and a discrete client account?
* General client account - holds money belonging to more than one client
* Discrete client account - holds money belonging to a single client
48
If you hold client's money, how do you set up an appropriate account?
1. Must be held in bank account separate from all other monies
2. Account title must include the word 'client'
3. Firms must advise clients in writing of account details and agree terms of account handling
4. A 'Principal' (i.e. director/partner of the firm) or appropriately qualified individual is appointed to oversee client accounting functions
5. Written consent must be obtained if the firm is to retain any interest accrued
6. Details of money paid into and out, including a running balance, must be made available
7. A central list of client accounts must be maintained, including opening and closing dates
8. Clients' money must be banked within 3 working days
9. Fees received in advance for professional work not yet billed must be paid into a client account pending completion of the work
49
Who does interest earned on a client account belong to?
Belongs to the client unless written consent states otherwise
50
What is the maximum length of time you should keep a client's money before placing it in an appropriate account?
3 working days
51
What is the Clients' Money Protection Scheme?
* Free to use RICS service (paid for by firms as part of their yearly regulatory review fee) that allows members of the public to be reimbursed for any direct loss of funds (i.e. clients' money held by a regulated firm that has been misappropriated)
* The scheme is one of last resort - the firm is primarily responsible for making good the loss and the scheme only comes into operation when the firm are unable to make payment
52
What are the current monetary limits on the Clients' Money Protection Scheme?
Current limit is £50,000 per claimant up to an overall limit for all claims under the scheme of £10,300,000 in any one calendar year
53
Within what timeframe must claims be made under the Clients' Money Protection Scheme?
Claims must be made within 6 months of discovery of loss
54
What steps would you take if any surplus money was discovered in a client's account?
1. Ensure all efforts are made to trace the clients/owners of the money
2. Hold the surplus money in a suspense account
3. Hold surplus money for at least 6 years
4. Donate to a registered charity if no owner has been found (keeping a receipt and preferably an option recover the donation)
55
What is money laundering?
The process by which the proceeds of crime are converted into assets that appear to have a legitimate origin
56
What legislation covers money laundering in the UK?
Money Laundering Regulations 2017
57
Who does the current money laundering legislation apply to?
Apply to anybody in the 'regulated sector' (includes estate agents and High Value Dealers)
NB: High Value Dealers are those that receive payments of €15,000 or more in cash in exchange for goods (not services)
58
What are the requirements under the current money laundering legislation?
Regulated firms must:
1. Register with HMRC
2. Carry out customer due diligence measures to check customers are who they say they are
3. Keep records of customer due diligence checks and financial transactions
4. Put systems in place to avoid money laundering
5. Appoint a 'nominated officer' who is responsible for reporting suspicious activity to the National Crime Agency (NCA) under the Proceeds of Crime Act 2002
59
What may still be required for individuals/firms that are not governed by the current money laundering legislation?
Firms that are not within the regulated sector may also need to submit a Suspicious Activity Report (SAR) to the NCA if they have knowledge or suspicion of money laundering activities
NB: failing to do so is an offence
60
What legislation governs the reporting of suspicious activity?
1. The Proceeds of Crime Act 2002
2. The Terrorism Act 2000 (all individuals and companies must report terrorist financing where suspected/known)
61
What are some typical indicators of money laundering?
1. Large payments made in cash
2. Party is being overly secretive or evasive
3. Source of funds is not known or questionable
4. Party refuses to provide information, data or documents usually required to enable transactions
62
What can you and your firm do to prevent fraud?
1. Set up a fraud response plan, outlining procedures for detection, investigation, prevention of further loss, securing evidence, recovery and reporting
2. Never hand out confidential information to any unsolicited phone calls, texts or emails
63
What should you do if you know of or suspect fraud?
Report it to Action Fraud
64
A client gives you money to cover planning and building regulations applications for a project - what should you do with it?
Set up a clients' holding account in accordance with the RICS requirements
65
A client gives you a large sum of cash to pay for a builder whilst he is out of the country - what would you do?
1. Question why cash is being used
2. If circumstances are not deemed to be suspicious, set up a client holding account in accordance with the RICS' obligations
3. If circumstances are deemed to be suspicious, report to the National Crime Agency (NCA)
66
How are disciplinary matters dealt with by the RICS?
Disciplinary rules are made by the Regulatory Board (found in RICS document 'Disciplinary, registration and appeal panel rules') and are implemented when a member/firm breaches the rules of conduct
67
What sanctions can the RICS impose on members and firms?
1. Fixed penalty - a caution and/or fine payable by the member/firm
2. Consent order - formal written agreement between the RICS and the member/firm for the latter to take/refrain from taking action within a specified time or pay a fine
3. Panel hearing - for serious breaches in front of the Disciplinary Panel where penalties can be anything from a caution to expulsion
68
When might a fine be deemed necessary to discipline a member/firm?
Only applicable for insufficient CPD, failing to provide information to the RICS and insufficient firm registration fees
69
When might a consent order be deemed necessary to discipline a member/firm?
1. Breaches not serious enough for a public disciplinary hearing
2. The member/firm admits the breach and is willing to co-operate with the RICS
70
When might a panel hearing be deemed necessary to discipline a member/firm?
For serious breaches (e.g. mishandling clients' money, accepting bribes etc.)
71
What is the Conduct and Appeal Steering Committee?
1. Set up by the Conduct and Appeal Committee, comprising 5 of its members, including a chair who is not a RICS member
2. Oversees the appeals process against regulatory and disciplinary decisions
3. Responsible for appointing panellists eligible to sit on the Disciplinary Panel, Registration Panel and Appeal Panel
72
What is the Disciplinary Panel?
1. Comprises 3 members - a chair and 2 others, at least one of which must be a non-member of the RICS
2. Hears disciplinary cases and exercises the disciplinary powers of the RICS
73
What is the Registration Panel?
1. Comprises 3 members - a chair and 2 others, at least one of which must be a non-member of the RICS
2. Reviews decisions relating to the registration of firms/members
74
What is the Appeal Panel?
1. Comprises 3 members - a lay chair and 2 other panellists
2. Hears appeals arising from decisions of the Disciplinary Panel and Registration Panel
75
What is CPD?
Continuing Professional Development - commitment by members to continually update their skills and knowledge in order to remain professionally competent
76
What qualifies as CPD?
CPD can cover a diverse range of activities and can be formal or informal
77
What is the difference between formal and informal CPD?
* Formal - any form of structured learning that has clear learning objectives and outcomes (e.g. professional courses, seminars and conferences, technical training, formal teaching/training for others etc.)
* Informal - any self-managed learning relevant to your professional role (e.g. private study, attendance at informal seminars or events where the focus is on knowledge sharing etc.)
78
What are the RICS CPD requirements for APC candidates?
APC candidates must undertake 48 hours of CPD each year, of which at least 50% must be formal CPD
79
What are the RICS CPD requirements for members?
Members (FRICS, MRICS and AssocRICS) must undertake at least 20 hours of CPD each year, of which at least 10 hours must be formal CPD
80
How do RICS members keep records of their CPD?
Members must record all their CPD online, either via computer or on the RICS CPD smartphone app
81
What would happen if you did not record the required CPD in a year?
Failure to record the required CPD in a year will result in a fixed penalty caution that will remain on record for 10 years
82
You are studying French at evening classes - could this constitute part of your CPD requirement for the RICS?
Only if it is relevant to your profession
83
What interesting articles have you read in the RICS Modus magazine lately?
"Show and Tell" article about utilising visualisations, such as 3D models and augmented reality, to increase stakeholder engagement whilst planning developments, as well as communicating health and safety hazards and risks on site more effectively
84
What news/events have recently been happening with the RICS?
Misappropriation of funds
85
How would you keep up to date with changes in legislation?
1. RICS website - news section
2. Modus
3. Building Surveying Journal
4. CPD seminars
86
What events are currently planned in your local region?
RICS Matrics events, CPD seminars (see RICS website)
87
What would you do if you accidently sent a confidential email?
The client who's information it is should be informed. The third party should be told that it was sent in error and it should be properly deleted. The compliance officer should be informed and the incident logged
