Level 1 Flashcards
Why do you want to become a member of RICS?
a prestiguous achievement,
What is the role of RICS?
The RICS Promotes and enforces the highest standards in the development and management of land, real estate, construction and infrastructure.
What are the key functions of RICS?
What is a Royal Charter?
A Royal Charter is an instrument of incorporation, granted by The King, which confers independent legal personality on an organisation and defines its objectives, constitution and powers to govern its own affairs.
What does the RICS Royal Charter require?
requires us to promote the usefulness of the profession for the advantage of the UK public and in other parts of the world.
Who is the current RICS president?
Ann Gray - In January 2023
What do you understand by the term self-regulation?
meaning that it operates within it’s own published regulatory framework, rather than being legislated by Government
Can you tell me what you understand by the principles of better regulation?
What is a Byelaw?
A byelaw is a set of rules or law established by an organization or community so as to regulate itself, as allowed or provided for by some higher authority
Give an example of one of the RICS Byelaws.
Membership and registration
Explain to me the new RICS Rules of Conduct - what do they replace?
The new rics rules of conduct is A consolidated report incorporating the former RICS Rules of Conduct for firms and for members and the global professional standards.
When do they (Rules of Conduct) take effect?
11 October 2021, effective 02 February 2022
Who do they (Rules of Conduct) relate to?
Members and firms regulated by the RICS.
What are the 6 ethical principles that the Rules of Conduct are based on?
Honesty, Integrity, competence, service, respect and responsibility
What are the 5 Rules of Conduct?
Rule 1 - to be honest and act with integrity and comply with their professional obligations
Rule 2 - maintain their professional competence and ensure services are provided by competent individuals
Rule 3 - must provide good-quality and diligent service
Rule 4 - must treat others with respect and encourage diversity and inclusion
Rule 5 - Act in public interest, take responsibility and maintain public confidence
Give an example behavior’s for each Rule of Conduct.
Rule 1 - do not take unfair advantage of others
Rule 2 - only undertake work that they have the knowledge, skills and resources to carry out competently
Rule 3 - understand clients’ needs and objectives before accepting any professional work.
Rule 4 - respect the rights of others and treat others with courtesy.
Rule 5 - respond to complaints made against them promptly, openly and professionally
What are the core professional obligations of firms to RICS?
Publish a complaints handling procedure, including ADR, and maintain a complaints log.
Ensure all previous and current professional work is covered by adequate and appropriate professional indemnity cover.
Make appropriate arrangements for professional work to continue where necessary.
Cooperate with RICS.
Promptly provide all information reasonably requested by the Standards and Regulation Board, or those exercising delegated authority on its behalf.
Display on their business literature that they are regulated by RICS.
Report to RICS any matter that they are required to report under the Rules for the Registration of Firms.
What are the core professional obligations of members to RICS?
Comply with CPD.
Cooperate with RICS.
Promptly provide all information reasonably requested by the Standards and Regulation Board, or those exercising delegated authority on its behalf.
What disciplinary procedures can the RICS impose?
A Regulatory Compliance Order - - where the regulated member admits the allegations.
A single member of the regulatory tribunal - where the regulated member does not admit the allegations.
Disciplinary panel - for serious allegations
In what circumstances can these be imposed?
When allegations have been made against a regulated member
When did RICS last update their disciplinary panel rules?
02 March 2020
What are the different levels of action within these procedures?
What do you understand by the term professional practice?
Used to describe activities which will help you apply your knowledge to your industry, job role or workplace.
What money laundering regulations or legislation are you aware of?
The Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017
What is a red flag of money laundering?
Frequent Cross-Border Money Transfers to Different Accounts
What bribery legislation are you aware of?
the Bribery Act 2010
What is a bribe?
money or any other valuable consideration given or promised with a view to corrupting the behavior of a person
What are the penalties for accepting a bribe?
a fine or imprisonment for up to 10 years
What are the penalties for being involved in money laundering?
a jail sentence of up to 14 years or a large fine
What constitutes an offence under the Bribery Act 2010?
to pay or receive a bribe, either directly or indirectly.
What constitutes an offence under the current money laundering regulations?
concealing, disguising, converting, transferring or removing criminal property
How long should you keep anti money laundering records for?
5 Years
What is Professional Indemnity Insurance (PII)?
protects you against claims for loss or damage made by clients or third parties as a result of the impact of negligent services you provided or negligent advice you offered.
Can you tell me about the RICS requirements in relation to PII?
PII must cover any claims firms may face,
What is a PII aggregation clause?
allows or requires a number of, usually, similar or linked claims to be treated as a single claim.
What does ‘claims made’ mean in terms of PII?
payment will be made for a claim made during the cover term, regardless of when the incident – or alleged incident – took place.
Is a PII excess usually paid for per claim?
In a negligence claim, what would help to show that you acted with consideration and due process?
Can good record keeping help to provide a defence in a PII claim?
Yes. It allows firms to defend themselves against claims of professional negligence
If you were providing services outside of your usual scope to a client, what might you need to do in relation to your PII cover?
What is run off cover?
insurance for claims made against a firm after it has stopped doing business.
What RICS requirements are there relating to run off cover?
requires that firms have ‘adequate and appropriate’ run-off cover, meaning a minimum of six years for consumer claims
What changes did RICS recently make to the Minimum Approved PII Wording?
There are no changes to the RICS UK PII requirements
What precedent has caselaw set in terms of keeping adequate site notes (and therefore providing a defence in a PII claim)?
Would a dictated report avoid the need to have any written site notes?
Explain PII requirements relating to fire safety cover and cyber cover.
Fire safety - the minimum terms now state that, absent dispensation, any exclusion in a PII policy ‘will not apply to professional work relating to buildings four storeys or under’
Cyber Security - now exclude claims relating to the use of, or inability to use, a computer system arising from the receipt or transmission of malware, or from so-called ‘cyber acts’ including damage to or destruction of programs, software or stored data