APC Mandatory Competencies

Question 1

What are the five Rules of Conduct (2021)

Answer 1

1) Members and firms must act with honesty and integrity, maintain their professional obligations, and the obligations of the RICS

2) Member and firms must act within their professional competences and ensure services are provided by a competent individual within the scope of their expertise

3) Members and firms must provide a good quality and a diligent service

4) Members and firms must treat others with respect, and promote diversity and inclusion

5) Members and firms must act in the public interest, take responsibilities for their actions and prevent harm and maintain public confidence.

Question 2

What was the Bichard Review and date it was published

Answer 2

Lord Michael Bichard published his independent Bichard RICS Review (June 2022) which was commissioned by the RICS Governing Council to review the Institution’s purpose, governance and strategy following the recommendation from the Levitt Review.

Question 3

What are the key recommendations from the Bichard review

Answer 3

Creating a public interest panel to advise governing council

Increase focus on diversity and inclusion across the profession and within RICS governance

Maintaining self regulation, through greater independence for regulatory functions

Undertaking an independent review of RICS governance and effectiveness at delivering against it’s charter for the public advantage once every 5 years

Greater leadership on sustainability and climate change

Question 4

Who is the new CEO of RICS

Answer 4

Justin Young from 5 July 2023

Question 5

Who is the RICS president and what is their role

Answer 5

Ann Gray

An ambassador responsible for driving leadership across the profession helping to deliver RICS goals.

Question 6

What is the role of RICS

Answer 6

To promote and enforce the highest professional qualifications and standards in the development and management of land, real estate, construction and infrastructure

Question 7

What is a conflict of interest

Answer 7

A conflict of interest arises when a firm’s independence or impartiality is threatened due to the existence of conflict between two client. Examples include:
- Any financial conflict
- A personal conflict
- Commercial relationships
- Acting on both sides of a transaction

Question 8

What is the professional guidance note on Conflict of Interest

Answer 8

RICS Global Professional Statement on Conflicts Statement on Conflicts of Interest (2017) - Effective from Jan 2018

Question 9

What does it state in the Professional guidance note for conflict of interest

Answer 9

‘Members must not advise or represent a client where doing so would involve a conflict of interest or significant risk of a conflict of interest, other than where all those who are or may be affected have provided informed consent’

Informed consent can only be sought where RICS member or regulated firm is satisfied that proceeding despite a conflict of interest is in the interests of all those who are or maybe affected and is not prohibited by law (RICS 2017)

Question 10

What are the three types of conflicts of interest

Answer 10

A party conflict - relating to work on the same or related instruction for two different parties

An own interest conflict - relating to personal interest

A confidential information conflict - relation to work between two parties that are confidential

Question 11

How can informed consent be provided and what measures should be in place

Answer 11

This can only be given in writing by the party if the person explaining the position to them is entirely transparent about any material factors and sure that the party affected understands what they are doing

Surveyors should only seek informed consent if satisfied that all relevant parties are best served by doing so

Question 12

What are other key areas of the professional statement

Answer 12

• All conflict must be managed in accordance with the Professional Statement
• Every RICS firm must have in place effective systems and controls appropriate to the size and complexity of their business to ensure compliance
• All firms must keep records to show their compliance with the Statement

Question 13

What is FG’s conflict of interest policy

Answer 13

All individual’s at FG must comply with policy and RICS professional statement of COI

The responsible principle is - Clare Philipson

• Must carry out COI checks before accepting instruction
• We carry out COI annually for existing management clients
• Colleagues must monitor COI daily
• Information barriers can be put up (ie. separate office areas)
• The instruction partner must decide whether or not a conlifct
• Can request an informed consent form

Question 14

Name a time when you had a conflict

Answer 14

I was advising on a potential acquisition of land in Belvedere. I was aware that Fisher German’s lease advisory team were actively involved with the landowner. I raised this as a potential conflict with the instruction partner who advised me that they had requested informed consent from the landowner to act for the other party. We did not proceed with the land acquisition due to other factors.

Question 15

How do you handle conflict of interest

Answer 15

Must undertake three steps:
1) Conflict Avoidance
2) Written advice to both parties
3) Conflict Management

Question 16

1) What is conflict avoidance

Answer 16

Upon receipt of the full facts, consider whether the conflict is irresolvable because your impartially is compromised and should be avoided or whether it can be properly manged maintaining transparency and openness.

Decide whether you want to accept or decline the instruction from Client A and Client B

Question 17

2) What is written advice to both parties

Answer 17

Assuming you wish to accept the isntruction, set out in writing as soon as possible the following information to Client A and Client B:

1) Disclose the nature of the conflict, the circumstances surrounding it and any other relevant facts and set out how your proposal s for how the firm intends to deal with the conflict, such as setting up of an information/ethical barrier.

2) Be as clear as you can and ensure that both parties can make their own decision (inform them to seek independent advice if needed)

3) Request written confirmation from both clients of their INFORMED CONSENT that your firm can act in accordance with the provisions of the procedure proposed.

Question 18

3) Conflict Management

Answer 18

Once you have received written consent to your declaration of the conflict and set up an information barrier in accordance with the provisions agreed with both clients.

Question 19

What goes into Terms of Engagement - Valuation

Answer 19

The client
The borrower (third party)
Property address
Interest to be valued
Purpose of the valuation
Basis of the valuation i.e. Market Value as defined in VPS4 section 4 and IVS 104 of the RICS Valuation –Professional Standards
Valuation date
Special assumptions
Fees

Question 20

What are the principles of the Estate Agency Act 1979

Answer 20

1. Clarity as to the terms of agency (section 18)
2. Honesty and accuracy
3. Agreement and liability for costs
4. Openness regarding personal interests (section 21)
5. Absence of discrimnation
6. Legal obligation to tell the client about offers recieved
7. Keep clients’ money seperate

Question 21

Some important takeaways from the Estate Agency Act 1979

Answer 21

Specify all costs/fees in advance, in writing terms of business (section 18)

Specify mature of agency and selling rights to be agreed (sole selling right or joint agency rights)

Disclosure of personal interests - a ‘connected person’ (section 21) is someone who could benefit financially from the transaction such as relation or business associate

Misrepresentation of interest/offers - you can only tell truth regarding offers received.

Question 22

What is they key guidance note for complaint handling

Answer 22

RICS Guidance Note on Complaints Handling (2016)

Question 23

Key details to note on Complaint Handling

Answer 23

• A firms written complaint handling procedures (CHP) must be approved by the RICS
• Always remember to notify your PII Insurers as soon as possible of there is a complaints as this could lead to a claim for negligence
• Details of the CHP should be issues to client as the same time as Terms of Business
• A complaint log must be maintained to show details, progress and outcome of any complaints
• Firms must include an RICS approved Alternative Dispute Resolution (ADR) mechanism in their complaint handling procedure

Question 24

How do you handle a complaint

Answer 24

• Must be quick, clear, transparent and impartial
• Details of nominated person who will investigate must be specified
• Complaint must be in writing
• Acknowledged within 7 days by sector lead/divisional partner
• Investigated and responded within 28 days

Question 25

How do FG handle compliant system

Answer 25

• Everyone should be aware of the CHP
• Within 1 day, refer to the Complain Handling Officer - Sanjay Pantel
• Ask for the compliant to be in writing and supply them with CHO email address
• Must be acknowledged within 7 days (FG aim for 5 days)
• CHO to respond to compliant within further 21 days (to make up to the 28 days)

Question 26

What is PII

Answer 26

Personal Indemnity Insurance

• It’s a mandatory practise for surveyors
• It’s there to protect clients, surveyors and third parties against negligence claims when there is a duty of care breached and a claim for damage arises
• Al member must ensure that previous and current work is covered by appropriate POO covers that meets RICS standards
• All policies must be underwritten by an RICS approved insurer

Question 27

What is good negotiation skills

Answer 27

• Agreeing your clients objectives and negotiating strategy before you start negotiations
• Detailed research and SWOT analysis
• Preparing your win win and fall back positions
• Decided what points you can give on and what is non negotiable
• Creating a constructive environment for the negotiations
• Understanding the other parties opinions
• Considering the method of communication
• Create a partnership/collaborative approach
• Maintain communication always
• Walk away when you need

Question 28

What should be included in the contents of a set of public limited company accounts

Answer 28

• Chairman statement
• Independent auditors report
• Income statement
• Statement of financial position( Balance sheet)
• Income Statement (profit and loss account)
• Corporate governance report
• Remuneration report
• Other stat. information

Question 29

What is a profit and loss and a balance sheet

Answer 29

Balance sheet (statement of financial position) is a statement of the businesses financial position showing its assets and liabilities at a given date, usually at the end of a financial year.

Profit and loss (income statement) is a summary of the business’s income and expenditure transactions, prepared usually on an annual basis

Question 30

What is UK GAAP

Answer 30

It is the UK Generally Accepted Accounting Principles - which is a common set of principles companies use to compile their financial statements to ensure maximum consistency. Accounts must be drawn up in accordance with these principles.

Question 31

What was the changes from IFRS 16

Answer 31

IFRS us the lease accountancy standard which all companies have to comply when using the International Financial Reporting Standards. The full costs of leases have to be accounted on the balance sheet. An occupiers obligation to pay rent has to be recognised as a liability, though service charge payments would be accounted for separately. Exceptions exist for leases of 12 months or shorter.