CPD

Question 1

What does CPD mean?

Answer 1

Continuing professional development (CPD)

Question 1

What are the four requirements of CPD?

Answer 1

1. Members must undertake a minimum of 20 hours CPD a year.
2. Of the 20 hours, 10 must be formal and 10 must be informal.
3. All members must maintain a relevant and current understanding of RICS rules of conduct during a rolling 3-year period.
4. All members must record their CPD activity using the RICS CPD Management System available online on the RICS member by the 31st Jan each year.

Question 2

What is formal CPD

Answer 2

It is structured learning which has clear learning objectives and outcomes such as online training, professional courses/seminars and self managed learning

Question 3

What is informal CPD

Answer 3

This is any self-managed learning that is relevant or related to your professional role. This includes private study.

Question 4

What is negligence?

Answer 4

Duty of care exists to clients and third parties using ‘reasonable care and skill’. When breached, and there is a loss, a claim for damages arises. Example of negligence in the case of Yianni v Edwin Evans (1981) - resi valuer has a duty of care to the mortgagee.

Question 5

What act deals with negligence?

Answer 5

The Limitation Act 1980

Question 6

What the current limitation periods for negligence in Contract and Tort?

Answer 6

Contract - 6 years from the date of the negligent act, breach of contract or omission. S14a provides an alternative limitation period of 3 years from the date of knowledge of the damage subject to the 15 years long stop from the negligent act or omission.
Tort - 6 years from the date the claimant suffered loss.

Question 7

How to avoid negligence claims

Answer 7

• understanding the client’s objectives and confirming precise instructions in writing in the terms of engagement
• Ensure you are competent to undertake the instruction
• Make detailed notes and photos
• Keep up to date with market knowledge and legislation and keep CPD record

Question 8

Why is PII used?

Answer 8

To protect clients, surveyors and third parties against negligence claims where there is a duty of care breached and a claim for damages arises.

Question 9

Who needs PII?

Answer 9

Mandatory for surveyors working in practice.

Question 10

Which document sets out the Professional Indemnity Insurance Requirements?

Answer 10

Professional Indemnity Insurance Requirements (2022)

Question 11

What must members ensure when it comes to PII when looking at a new instruction?

Answer 11

All members must ensure that an adequate and appropriate level of insurance is put in place for each instruction having considered potential liabilities which may exist.

Question 12

What must all PII be underwritten by?

Answer 12

By a RICS approved insurer

Question 13

What are the minimum requirements based on turnover of the firm?

Answer 13

£100,000 or less turnover requires a minimum level of indemnity for each claim £250,000
£100,001 to £200,000 - £500,000
£200,001 and more - £1,000,000

Question 14

What is the maximum level of uninsured excess required by rics?

Answer 14

Firms turnover - up to £10m, maximum uninsured access, the greater of 2.5% of the sum insured or £10,000
Over £10m, no set limit

Question 15

When should PII Certificates be sent to the RICS?

Answer 15

On an annual basis as part of the firm’s annual return

Question 16

What is run-off cover?

Answer 16

RICS run-off cover is a type of insurance required when a firm or member ceases to trade. It is on a claims-made basis and fully retroactive, so it covers all historic work carried out by the firm1. RICS requires firms to obtain fully retroactive run-off cover to ensure that firms, members and their clients are not exposed to financial detriment in the period following a firm ceasing to trade. RICS members need to have a minimum of six years’ worth of run-off cover with a minimum of £1,000,000 of aggregate cover. Firms must consider what is adequate and appropriate for a minimum of 6 years.

Question 17

What happens if firms or members are unable to obtain run-off cover?

Answer 17

They can apply for coverage to the RICS Run-off Pool

Question 18

Is PII cover required for ‘pro bono’ (unpaid work)?

Answer 18

yes

Question 19

What is the RICS Assigned Risk Pool?

Answer 19

The ARP is open to all UK RICS regulated firms that are unable to obtain PII, which meets the minimum requirements of the RICS, in the insurance market.

Question 20

What is the Members Support Service?

Answer 20

Its for members facing claims for work carried out by an employer who has gone into administration, offering help, advice and further support.

Question 21

What document provides guidance on liability caps and reliance?

Answer 21

RICS Practice Information - Risk, Liability and Insurance 2021, which provides advice on the use of liability caps to manage risks associated with professional work, and to be aware of third-party reliance and make it clear that advice can only be relied upon by the client named in their terms of engagement.