Client Care / Ethics - CHP Flashcards
What documents do the RICS publish on Complaints Handling?
RICS Complaints Handling. Originally published as a Guidance Note in 2016. Reissued as a Professional Standard in October 2023.
What are requirements for RICS regulated firms on Complaints Handling?
Mandatory for all RICS-regulated firms to publish a complaints-handling procedure, which includes an Alternative Dispute Resolution (ADR) mechanism, and they must maintain a complaints log.
What are requirements for RICS Members outside of a RICS-regulated firm?
In accordance with the Rules for the Registration of Schemes, RICS Members who carry out work outside of a RICS-regulated firm but are registered on certain RICS Schemes must have in place a complaints-handling procedure which includes an ADR mechanism.
What is an Alternative Disputes Resolution?
Alternative Dispute Resolution is a way to resolve disputes between clients and firms after an internal complaints procedure has been exhausted. It is less costly and time-consuming than having to go to Court.
What should an effective CHP be as per RICS Complaints Handling Professional Standard?
- be fit for purpose – reflect size and structure of the business
- made available to all staff – provides clarity and consistency to staff and clients
- be understood by all staff – keep records of staff training
- readily be shared with complainants or potential complainants –details of policy should be in terms of business
- be regularly reviewed at a senior level
- be agreed with PII brokers/provider(s) – the CHP should reflect processes that do not
compromise PII cover - provide details of access to independent redress if the firm cannot resolve the complaint.
Whenever an RICS regulated firm issues Terms of Engagement, it should be made clear to the client that the firm operates a CHP.
What happens if a complaint is made?
Initial response given to claimant
All complaints must be investigated within 28 days
All complaints and their progress and outcome must be recorded
PI insurers need to be informed immediately of a complain
The process must have a minimum of two stages:
1. needs to be a consideration of the complaint by a senior member of the firm or the complaints handling officer
- if the issue is not resolved then the complaints is referred to an independent third party with the authority to award redress. The complainant may be expected to contribute towards costs at this stage.
Learn from the experience
What is the purpose of professional indemnity insurance?
- Provides financial cover in the event that a Client suffers a financial loss as a result of a BREACH OF PROFESSIONAL DUTY e.g. neglect, error or emissions
- The professional is protected from the financial loss
- The firm does not have to meet the claim from their own assets and resources
What are the requirements for PII set by the RICS
- The policy cover must be made on an “each and every” claim basis
- RICS sets out the minimum levels of indemnity
- Firm turnover £100k or less = £250k
- Firm turnover £100-200k = £500k
- Firm turnover £200k+ = £1m - RICS sets out the maximum level of uninsured excess
- Turnover is £10m or less = the greater of 2.5% of the sum insured of £10k maximum of uninsured excess
- Turnover is £10,000,001 or more = no limit set - Run-off cover in place for at least 6 years - so not exposed for financial detriment in a period following a firm ceasing to trade
- Cover for past and present employees
- Full retroactive - cover past work
On what basis is PII underwritten in the UK?
- On a claims basis
- The insurance policy that is in place AT THE TIME THE BREACH IS DISCOVERED is responsible for providing the indemnity not the insurance policy in place when the breach was made
What limitation periods are in place in under hand and deed forms of contracts?
Limitation periods
- 6 years when under hand
- 12 years when executed as a deed
What are the new RICS professional indemnity insurance requirements?
Updated following issue of UK PII requirements v9 (effective 1st April 2022)
- Introduce maximum limit of uninsured excess of PII
- Turnover is £10m or less = the greater of 2.5% of the sum insured of £10k maximum of uninsured excess
- Turnover is £10,000,001 or more = no limit set
What RICS document discusses PII?
UK professional indemnity insurance requirements - RICS Regulation (April 2022)
What were the old limits on PI?
based on level of indemnity cover
PII =<£500k = the greater of 2.5% of the sum insured of £10k maximum of uninsured excess
PII >£500k = 2.5% of the sum insured
These have now been overhauled
What is Clarions CHP?
Customer Charter -provide good quality homes and services, respond promptly and effectively, listen and keep informed, deliver value for money.
Complaints policy -Put things right within reasonable timescales, manage expectations, follow procedures, record details and actions throughout, use lessons learnt.
Complaints procedure -Complaint to be resolved within 10 working days, peer review/escalation if customer requests to be resolved within 20 working days, if unhappy with outcome the complaint can be referred to MP, Counsellor or The Housing Ombudsman Service (HOS).
How do you deal with a client complaint?
Transparency/ honesty/ integrity/ clear communication
