Ethics Flashcards
(128 cards)
1
Q
Can you tell me how you would deal with a conflict of interest?
A
If I identify a conflict of interest, I would firstly raise it on the internal system and with my line manager.
I would then discuss the matter with my client if I felt it could be limited.
If it could, then an information barrier could be put in place and informed consent should be given by my client
If not, then I would advise that I would not be able to complete my services and instead someone else would have to fulfil our obligations
2
Q
Can you still work when a COI exists?
A
Yes, providing firstly:
I believe I can complete my work impartially and review other methods to prevent the conflict, for example an information barrier.
Also ensuring I receive informed consent from my client and they too understand the conflict of interest that has occurred.
3
Q
What are the requirements of a firm in terms of PI policy?
A
It should be written on a full civil liability basis wording.
It should be fully retroactive (on a claims made basis).
It should be covered by a RICS listed insurer.
The PI cover should be related to the firms annual turnover for minimum levels of indemnity, or if it is a new business, on expected turnover.
Cover should either be on an ‘each and every’ claim basis, or in the aggregate, with around the clock reinstatement.
It should comply with RICS requirements of uninsured excess.
There should be adequate run off cover.
4
Q
What is run off cover?
A
Run off cover protects clients and firms where claims are made against a firm that has ceased trading.
5
Q
Who does our PI policy protect?
A
The firm
Clients
Individuals
6
Q
What if a firm cannot obtain run off cover?
A
They can apply to the RICS Run off pool
This is set up by the RICS for firms that cannot obtain run off cover from the open market
7
Q
How do you differentiate between formal and inform CPD?
A
Formal
Structured and outcome is assessed
Held in a structured environment with key outcome
Interaction with other professionals
Informal
Outcome is self-assessed
Not held in a structured environment
Ultimately, I would refer to the RICS decision tree for informal / formal CPD to provide an assessment.
8
Q
Tell me how you have acted with integrity?
A
I act with integrity in everything that I do day-to-day in my role.
Especially when dealing with valuations, if the contractor has missed an item of works in their application, I would raise this with them and highlight that I will include it in my assessment unless left out for any other reason.
9
Q
What must our complaints handling procedure be?
A
2 stage process
Easily understood
Be agreed with PII providers
Provide details for independent redress if the firm cannot resolve the complaint
10
Q
What if the complaint is not settled?
A
As part of the requirements of the complaints handling procedure outlined by the RICS there must be an independent form of redress in place (ADR)
This allows the complaint to be decided using the ADR to provide an outcome.
11
Q
What legislation relates to gifts?
A
Bribery Act 2010
Proceeds to Crime Act 2002
RICS Countering Crime: Countering Bribery, Corruption, money laundering and terrorist financing – being updated now for 2025 to take into account AI.
RICS Rules of conduct – Rule 1 – Integrity and Honesty
12
Q
What are the offences under the Bribery Act?
A
Accepting a bribe
Offering a bribe
Failure to prevent a bribe
Bribing a foreign public official
13
Q
What is a bribe?
A
An exchange of a tangible good or promise to gain an unethical advantage.
14
Q
What are the penalties for bribery?
A
Imprisonment for up to 10 years
Unlimited fines
Disqualification of directors
15
Q
Why do you think the rules of conduct are important?
A
Ultimately, they underpin how a firm and member of the RICS should act in their day to day to role
They ensure that the industry is maintained the leading global property body and also upkeep the industry in the public image.
16
Q
Q. Pick one of the Rules of Conduct and how you comply with it.
A
o Rule 1 – Chosen as I think my case study is a good example of how I act with integrity and honesty.
o This is highlighted as it demonstrates how I ensured the contractor was comfortable in their proposal, so as to not ask them to sign up to risk proposals they were not uncomfortable and making sure all parties were happy with the final agreements.
17
Q
Q. What is the role of the RICS? (SRAM)
A
o Responsible for setting standards, regulating members, advancing knowledge and maintaining public trust.
18
Q
Q. What is professional indemnity insurance? Who does it protect?
A
o PII insurance protects against professional negligence
o It protects, clients, firms and individuals
19
Q
Q. What does PI not cover?
A
o Fines and penalties
o Work beyond the agreed scope of services
o Bodily injury and property damage (other forms of insurance for these i.e. Employer liability insurance or public liability insurance)
20
Q
Q. What is the difference between in the aggregate and each and every claim?
A
In the Aggregate
o The limit of indemnity is the total amount that the insurer will pay out over the entire policy term (usually one year) for all claims combined.
Each and every (any one claim)
o The limit of indemnity applies to each individual claim, regardless of the number of claims made during the policy period.
21
Q
Q. What is a locum?
A
o A locum is an appointed professional person who can complete the services of another, should they leave the company for any reason.
o Typically, important for sole practitioners.
22
Q
Q. How do you ensure compliance with the Modern Slavery Act?
A
o Abide in line with my company’s modern slavery statement.
o This outlines how the company ensures that modern slavery is prevented and also reported correctly.
Reported to:
o Police
o Modern slavery helpline
o Local authorities
23
Q
Q. How do you act with integrity?
A
o I act with integrity in everything that I do, making sure that I do the right thing, no matter what.
24
Q
Q. What 4 things constitute a bribe under the bribery act 2010?
A
o Accepting a bribe
o Offering a bribe
o Failure to prevent a bribe
o Bribing a foreign public official
25
Q. A client asks to take £1 million in cash to make interim payments to the contractor. what would you do?
o Advise that I would not be able to do this, even if this was going to be held in a client money account, AtkinsRealis operates a “no cash” policy.
26
Q. If you prepare an estimate or cost plan that is incorrect, can a client claim on their PI insurance
o It would depend on the situation.
o If the professional has be deemed as negligent and not taken reasonable care then yes.
o If the cost plan was affected by external factors out of the control of the professional (hyper inflation, unforeseen wars etc) then no.
27
Q. Other than valuations and payment, what other topics are in the rics black book?
o Acceleration
o Loss and expense
o Change control and management
o Final account procedures
o Management of risk
28
Q. What will your CPD requirements be once chartered?
o 20 hours, of which a minimum of 10 hours must be formal
29
Q. Hopefully you never have to worry about this, but are you aware of the disciplinary options that the RICS can impose on their members?
o 1st Step: Formal investigation by the Head of Regulation
o RICS can request information to investigate compliance
o Members must cooperate fully with enquiries
o Fixed penalty
o CPD sanction
o Disciplinary and regulatory decisions (expulsion)
o Regulatory Compliance order
Consent order – submitted to a judge to make it enforceable
30
Q. Can you tell me what the requirements for PI insurance are?
o Written on a full civil liability wording basis
o Underwritten by a RICS approved insurer
o Meets the minimum levels of PI based on a firms turnover in the preceding year
o On a claims made or in the aggregate basis, with around the clock reinstatement
o Meets maximum levels of uninsured excess
o Full retroactive
o Run off cover
31
Q. Under what circumstances would you be able to attend the social event? Even variations?
o Depends on the timing of the event and the proportionality
o If to celebrate a project completion, with the whole team invited for a low value dinner then this would be acceptable
32
Q. Why do you want to be MRICS?
o To become part of the leading global professional property body.
o Increase my client’s confidence in my work
o For future career opportunities.
33
Q. What is the procedure for a breach of a rule of conduct?
o 1st Step: Formal investigation by the Head of Regulation
o RICS can request information to investigate compliance
o Members must cooperate fully with enquiries
Fixed penalty
CPD sanction
Disciplinary and regulatory decisions (expulsion)
Regulatory Compliance order
34
Q. What are the obligations for members?
1. Complete the minimum CPD requirements
2. Make information freely available to the Standards and Regulations board upon request
3. Cooperate with the RICS.
35
Q. What are the obligations of firms under the rules of conduct?
1. Publish a complaint handling procedure with an alternative dispute resolution procedure
2. Ensure that all previous and current work is covered by adequate PI insurance
3. Firms with a sole practitioner must have a locum
4. Firms must cooperate with the RICS
5. Firms must promptly provide information requested by the Standards and Regulations board
6. Firms must display on their business literature the RICS designation
7. Firms must report to RICS any matter that they are required to under the rules for firms.
36
Q. When MUST a firm register with the RICS or be eligible to register?
o Firms required to register
The firm provides surveying services to the public
50% or more of the firms’ principals are RICS members
The firm is operating in regulated Area A (United Kingdom)
o May be eligible if:
The firms provide surveying services to the public and
At least 25% of the firms Principals are RICS members or
The firm has clear plan in place to secure compliance with 25% of RICS members.
The firm is supported by another RIC-Registered firm that fulfil the requirements of mandatory registered firms.
37
Q. How can a firm be deregistered?
o Form of the RICS website to file for deregistration
o Deregistration of the firm by the Head of the Regulation
o Ceasing to trade
o Insolvency
o Mergers
o Retirement of principals
38
Q. Why might a firm be declined deregistration?
o The firm is required for registration (operating in regulated area A, 50% of principals are RICS members, the firm provides surveying services to the public.
o The firm is subject to investigation under bye law 5
o Head of the regulation believe the firm has breached the rules of conduct or
o It has not paid registration fees
39
Q. What are the obligations of registration of a firm? Section 8 of the registration of firms
* Comply with the Rules of Conduct
* Act in accordance with the obligations set out in the RICS Royal Charter and Bye-laws
* Inform the Head of Regulation of any findings against it by any disciplinary or regulatory body, court or statutory
authority
* Inform the Head of Regulation of any findings of insolvency against the firm and
* Notify the Head of Regulation within 7 days if there is a material change regarding the firm, and provide full details
40
Q. What does an RICS firm need to send to RICS annually
o Staffing numbers and changes
o Types of client
o CHP (with ADR)
o PI details
o Information on client money held
41
Q. What should a good complaint handling procedure entail?
o 2 stage process
o Tracked and logged
o Ensure all staff have access to and understanding of a firms CHP.
42
Q. What is the longstop rule?
o The longstop rule refers to the “limit of liability”
o Essentially meaning the time frame in which a claim can be made against a party
o 15 years
43
Q. What is uninsured excess?
o Uninsured excess is the amount a firm would be liable to pay in the event of a claim.
44
Q. What are the minimum levels of uninsured excess?
As of 2024 - based on the sum being insured
o £10m PI or less = 2.5% of the sum being insured or £10,000, whichever is greater
o Greater than £10m = No limit set
45
Q. What must RICS regulated firms do in regard to bribery?
o Top Level Commitment
o Proportionate procedures
o Risk Assessment
o Due diligence
o Monitoring and Review
o Communication
46
Q. Types of Client Account
o General – This account holds funds from multiple clients together. Records must be kept to identify different amounts of money for each client and the expenditure
o Discreet (or designated) - This account is set up specifically for an individual client
47
Q. What do you if suspect money laundering?
o Firstly, report it to a company director
o Then report to the serious crime office / national crime agency and fill out suspicious activity form.
48
Q. How have you identified a conflict of interest?
o My company has an internal system for flagging a conflict of interest which is then dealt with, tracked and recorded
o I would raise it internally first also with my manager, and then raise it to the client
o Either informed consent and an information barrier would be put in place, or the conflict would be removed (by i.e. not working on the project)
49
Q. What is the RICS guidance on Conflicts of Interests?
o Professional Statement – Conflict of interest 2018
50
Q. What is the RICS Matrics?
o Early career community of the RICS that supports students, apprentices, trainees and new qualified professionals
o Offers
Free CPD
Peer support groups
Local communities
Social events and networking
51
Q. What charity is the RICS aligned to?
o Lionheart – Independent charity that offers support to RICS professionals and their families
Financial assistance
Mental health and wellbeing
Legal and employment advice
Support during illness
52
What is the process for registration of a firm?
- Application completed for the firm to be registered
- Agree the RICS may publish its decision
- Agree the RICS may share information on the firm to the government or other regulatory body
53
What is the process for shutting down a company?
Upon receipt of an application for deregistration, the Head of Regulation will, subject to Rule
9.3, deregister the Firm with immediate effect.
The Head of Regulation may refuse to deregister a Firm if:
a the Firm is required to register for regulation under Rule 3
b the Firm is the subject of an investigation under the provisions of Bye-Law 5
c the Head of Regulation believes that the Firm may have breached the Rules of Conduct or
d it has not paid all registration fees due and/or any fees, costs or fines levied under RICS’
regulatory rules
54
What is the role of the RICS?
1. Regulate [control] and promote the profession [in the public interest]
2. Maintain high professional standards
3. Protect clients through the implementation of strict rules of conduct and professional practice
4. Provide impartial advice and guidance
55
How is the RICS governed?
* Privy Council
* Governing Council
* Standards & Regulation Board
* Management Board
* Audit Committee
56
Who are / what do you know about the Privvy Council?
* Grants and awards Royal Charter
* The Privy (or ‘private’) Council is a formal body [which is external to the RICS], usually made up of senior politicians from the House of Commons or the House of Lords, which advises the Queen on government business which falls outside the remit of specific departmental ministers.
* Grants of changes to the institution
57
Where are the RICS headquarters?
* Great George Street, Parliament Square, London
58
What is the RICS motto?
“Est Modus in Rebus”, which means ‘there is measure in all things’
59
What does the RICS motto mean to you?
* To me, it has a double-sided meaning
* 1 = measurement as in measurement and quantification is pivotal to all construction projects
* 2 = measurement and quantification are vital in all things e.g. someone’s patience, determination, drive, etc. the measure of each of these characteristics is what makes us all unique
60
What are the principles of the bribery act?
Proportionate Procedures
Anti-bribery policies and procedures should be proportionate to the risks faced and the nature of the business.
Top-Level Commitment
Senior management must be committed to preventing bribery and fostering a culture of integrity.
Risk Assessment
Regular, documented assessments of internal and external bribery risks.
Due Diligence
Apply due diligence procedures to persons performing services on behalf of the organisation.
Communication (Including Training)
Ensure anti-bribery policies are embedded through internal and external communication and training.
Monitoring and Review
Regularly monitor and review procedures and make improvements where necessary.
61
Give me an example of a ‘party conflict’?
* Representing two clients who are both bidding for the same plot of land
62
Give me an example of an ‘own interest conflict’?
* Personal relationship e.g. brother who works at same firm, good friends with CEO of contractor
63
Give me an example of ‘confidential information conflict’?
* Where you have information about the plans of a client but also act for their neighbour who would be affected by these plans.
64
What is an effective conflict of interest procedure?
* Identify
* Manage
* Monitor
65
What legislation are you aware of in relation to modern slavery?
Modern Slavery Act - 2015
66
What are some point under the modern slavery act?
- Firms with turnover of £36m or more must publish a modern slavery statement
- Risk Assessments completed
- Training provided
- Due diligence into supply chains
- Monitor and review
- Provides help for victims of modern slavery
67
Who would you report modern slavery to?
- To the modern slavery helpline
- Or to the authorities
68
What is corruption?
* Corruption is a form of dishonesty or criminal offence undertaking by a person or organisation which is entrusted with a position of authority / power, for personal / professional gain.
* E.g. tender collusion – where bidders collude / discuss to fix tenders
69
What is Terrorist Financing?
* The solicitation, collection, or provision of funds with the intention that they may be used to support terrorist acts or organisations. Funds collected directly or indirectly for this purpose constitute terrorist funding.
70
What legislation are you aware of in relation to Money Laundering?
- UK Sanctions and anti-money laundering act 2018 (recently amended in 2022 for the Ukraine and Russia war)
- Money laundering, terrorist financing and transfer of funds Regulations - 2017
- Proceeds of Crime Act - 2002
- Countering bribery, corruption, money laundering and terrorist financing - 2019
71
What is the max limit for cash?
- 10,000 EUR's
* Otherwise have to register as a high value dealer with HMRC
72
Who would you report money laundering to?
- Serious fraud office
73
What MUST members ensure in relation to bribery and corruption?
* AVOID – Not offer or accept, directly or indirectly, anything that could constitute a bribe
* LEARN – Ensure that they have adequate knowledge of bribery and corruption to be able to comply with the requirements of this professional statement
* REPORT – report any activity they are aware of that breaches anti-bribery and corruption laws to the relevant authorities and / or to a senior manager
74
What MUST firms ensure in relation to bribery and corruption?
* AVOID – Not offer or accept, directly or indirectly, anything that could constitute a bribe
* COMPLY – have plans in place to comply with applicable laws governing bribery and corruption, and ensure that these are followed
* REPORT – report any activity they are aware of that breaches anti-bribery and corruption laws to the relevant authorities and / or to a senior manager
* REVIEW – act with due diligence to perform periodic written evaluations of the risks that face the firm and that may lead to the facilitation of bribery or corruption; in determining the appropriate level of due diligence, the firm may consider the type of business activities they engage in and the environment in which they operate
* RECORD – retain information explaining / detailing how the firm has met the requirements of the RICS professional statement.
75
Why might the RICS refuse registration of a firm?
- The firm has been refused registration within the previous 12 months or
- The firm has been deregistered within the previous 12 months
- A Firm that has been removed from registration as a result of disciplinary action
76
What is money laundering?
Money laundering is the process of disguising illegally obtained money to make it appear legitimate, allowing criminals to use their profits without detection.
77
What is a facilitation payment?
* A payment made to a government official with the purpose of speeding up a routine administrative action. Such payments are customary and legal in some countries, but in many jurisdictions they are criminalised.
* It is a type of bribe.
* Facilitation payments are illegal under the Bribery Act 2010.
78
What about if the bribe wasn’t a drink or dinner, but it was for £10,000?
* Decline the gift
* Declare / report on internal gifts and hospitality system
* Notify your client
* Report the crime to the authorities – potentially to the serious fraud office or call 101 for more advice.
79
Why could a gift be seen as a bribe?
* The timing of the gift could contribute to it being seen as a bribe e.g. during a tender
* The proportionality / value of a gift could contribute to it being seen as a bribe e.g. a Rolex
80
What does the Money Laundering & Terrorist Financing Regulations 2019 cover?
* Firms must have policies, controls and procedures
* Firms must have ensure that appropriate measures are taken
* Must undertake annual “client due diligence” checks
81
Why does Money Laundering & Terrorist Financing Regulations 2019 matter to a surveyor?
* We are often working with clients that have a large amount of capital, and facilitate payment to contractors
* We would be liable if the money is illicit
* If they accept illicit money, they will be considered a facilitator [i.e. payment for our services]
- LIMITS ON CASH IMPORTANT
82
What guidance does the RICS publish on handling client money
* Client Money Handling Professional Statement [2019]
* Client Money Protection Regulation [2019]
83
What is client money?
Client money is money of any currency (whether in the form of cash, cheque, draft or electronic transfer) that:
* an RICS-regulated firm holds for or receives on behalf of another person, including money held by a regulated firm as stakeholder and
* is not immediately due and payable on demand to the RICS-regulated firm for its own account
84
What is a client money account?
An account in the name of an RICS-regulated firm, [a wholly owned subsidiary company of the firm or an appropriately contracted third-party transaction service provider], holding client money that belongs to:
* a single client of the firm (discrete client money account)
* more than one client of the firm (general client money account).
85
What are the key objectives of the Client Money professional statement?
* Client money is kept safe
* Client money accounts are used for appropriate purposes only
* RICS-regulated firms have the appropriate controls and procedures to safeguard client money e.g. the RICS Client Money Protection Scheme (for Surveying Services)
86
What does the RICS (Rules of Conduct) say about client money handling?
* Rule 1 of the new Rules of Conduct – Firms must keep client money safe and have the appropriate controls and procedures in place.
87
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1.
88
What is the purpose of the RICS Money Protection Scheme?
* To allow RICS Registered Firms to offer client money protection in accordance with the Rules of Conduct
* To compensate clients of an RICS registered Firm for the losses resulting from the RICS Registered Firm failing to account for Client Money to the person entitled to it in accordance with the Rules of Conduct
89
What MUST RICS regulated firms ensure when holding Client money?
1. Hold all client money in a client money account over which the RICS-regulated firm has exclusive control
2. Client money account ONLY holds client money
3. Office money should NOT be held in a client money account
4. ensure ALL client money accounts include the word ‘client’ and the name of the firm in the title of the account
5. Client money in account is immediately available even at the sacrifice of interest (unless otherwise agreed)
6. ensure that where the client has given instructions to hold monies in a high interest account with penalties for instant access, penalties are only paid out of the client account if the client has provided specific informed consent, and this will not result in an overdrawn balance
7. confirm the bank operating conditions in writing with the bank that holds the client money account
8. ensure that where a client requests that money is held in an account to which it and the firm has access, this is a bank account set up by the client, not a firm bank account.
90
What information should be provided in writing to the Client? (client bank account)
1. Details of the bank account the client money is held in.
2. Confirmation that the RICS-regulated firm has exclusive control over the client money and whether the account is in the name of the regulated firm
3. advice to clients who pay fees in advance for surveying services (but not property agent services in England) that this money is not covered by the Client Money Protection scheme
4. disclosure of all commissions earned by the firm while managing their property
5. procedure for unidentified funds
6. a copy of the firm’s written procedures for handling client money.
91
How would you set up a client account?
* Set up account that is in the client's name
* Clients must always have access to the funds
* Clients’ money must be kept separate and clearly identifiable
* interest on the account must be agreed with the client
* Generate a cashflow
* You must maintain a client Ledger or running balance of any transactions
* Agree the terms and advise clients on the bank details
* The account must never be overdrawn
* Once services are complete the account must be closed with balances reimbursed (or donated to charity if the period of the client response elapses)
92
What is the RICS Money Protection Scheme?
* The RICS operates a Client Money Protection scheme in the UK. This scheme provides protection, as a last resort, in instances where an RICS Regulated firm is unable to repay a client's money, up to the limits and exceptions set out in the scheme rules.
* It is limited to:
o £50,000 per claim
o In the aggregate, can pay out £10.3million per year
* Where any conflict may exist between the professional statement on Client Money Handling and the Client Money Protection Scheme Rules, the Scheme Rules will take precedence.
93
What is best practice if your firm has any surplus client money in a client account?
* Trace the clients or owners of the money
* Hold money in a client suspense account
* Hold for at least 3 years.
* Donate to charity if the money cannot be returned.
94
When did the new Rules of Conduct come into force?
* February 2022
95
What documents did the Rules of Conduct replace?
1. The old Rules of Conduct for Members
2. The old Rules of Conduct for Firms
3. The Global Professional and Ethical Principles
96
What are the new Rules of Conduct? - 2021
1. Rule 1: Members and firms must be honest, act with integrity and comply with their professional obligations, including obligations to the RICS.
2. Rule 2: Members and firms must maintain their professional competence and ensure that services are provided by competent individuals who have the necessary expertise
3. Rule 3: Members and firms must provide good-quality and diligent service
4. Rule 4: Members and firms must treat others with respect and encourage diversity and inclusion
5. Rule 5: Members and firms must act in the public interest, take responsibility for their actions and act to prevent harm and maintain public confidence in the profession
97
How do you ensure you are conducting yourself in the right manner?
* Always adhere to the rules of conduct
* Always consult your line manager for advice or a second opinion [if an ethical situation arises]
* Refer to the Ethics tree
* If you think something is wrong or doesn’t seem right- it probably isn’t!
* Raise any concerns if you believe your firm is not adhering to the rules of conduct for firms
* Have the RICS 5 ethical standards embedded into everything you do
98
What tools can be used to make ethical decisions?
* RICS Ethics Decision Tree – tells you whether to ACT, RECORD, or NOT PROCEED
* Which is a sequential list of questions to ask yourself if you find yourself in a complicated ethical situation. The questions include:
o Do you have sufficient facts on the issue?
o Is it legal?
o Is it in line with the RICS Rules of Conduct?
o Etc.
99
What is a duty of care?
* A duty of care is a responsibility to provide professional services at the level of skill of care of a “reasonable” professional.
100
What is negligence?
* Negligence is a ‘failure to take proper care over something’ or a ‘breach of a duty of care which results in damage’.
101
What do you mean by “full civil liability basis”?
* In terms of professional indemnity insurance, a 'civil liability' wording is the widest available form of cover and wider than the usual 'negligence' or 'errors and omissions' wordings.
* it means if a claim isn't specifically excluded, then it’s included – it’s all-round protection.
102
What does the RICS mean by “claims made”?
* PII is written on a claims made basis, meaning that it is the policy in place on the date that the claim is made against you that will respond, as opposed to the policy in force at the date of the negligent act, error or omission itself.
LINKED TO FULLY RETROACTIVE
103
What will AtkinsRéalis cover for PI?
* AtkinsRéalis have cover between £1-10m [limit of indemnity]
* £5m and above requires sign off from the CEO
104
What is the latest RICS Guidance on PI insurance?
* Professional Indemnity Insurance Requirements 2024
* Risk, liability and insurance – April 2021
105
How to avoid PII claims?
* Never act outside of your scope of competence
* Never act beyond your scope of services
* Always refer to RICS guidance (although not mandatory, if you can prove you have acted in accordance with the guidance provided by the RICS a court will favor this)
* Keep a record of all work done
* Ensure you carry out QA procedures
106
For a firm to be eligible to register with the RICS, what must it demonstrate?
* At least 25% of the companies principals (Directors) must be RICS Members
* The Firm provides surveying services to the public
* Must have a Complaints Handling Procedure with an alternative dispute resolution provider approved by RICS, and maintain a complaints log
* Must have adequate and appropriate PI Insurance that meets the standards approved by RICS
107
What is included in an application to register for regulation by the RICS?
* Registration form found on the RICS website
* Company details
* Principals names
* Data Protection declaration: Agree that RICS may share relevant information about the Firm with the government or other regulatory bodies as appropriate and
* Agree that if RICS declines to register the Firm, RICS may publish its decision.
108
What is the procedure for registration?
* Provide information to the RICS via a form found of the RICS website, which includes company details, principal names, etc.
* Agree / sign the Data Protection declaration: Agree that RICS may share relevant information about the Firm with the government or other regulatory bodies as appropriate and
* Agree that if RICS declines to register the Firm, RICS may publish its decision.
109
Who else to you need to notify when setting up a new company?
* Company House
* HMRC (tax)
* Insurance’s providers
* Licences or permits
* RICS [if >50% of Principals are RICS members]
110
What sort of information do registered firms have to send to the RICS annually?
* Type of business and staffing
* Nature of clients
* Complaints handling procedures details and records
* PI insurance details
* Whether the firm holds clients’ money
111
What insurances would you need if you were starting up your own firm?
* PI Insurance
* Employer’s Liability
* Public Liability
* Contents / Building insurance of own office.
112
Are you aware of any other ADR providers?
* CEDR – Centre of Effective Dispute Resolution
* Adjudication
* RICS Dispute Resolution Service
* Chartered institute of Arbitrators
* Construction Industry Council
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What is your companies Complaints Handling Procedure?
2 stage process
1st Stage
Complaint is received in writing and then receipt is confirmed in writing within 7 days
Full response is then issued by the designated complaints handler within 28 days
2nd Stage
Stage Two: Gives the client the opportunity to have your complaint reviewed and considered by an independent redress provider, approved by RICS Regulatory Board.
RICS DISPUTE RESOLUTION SERVICE = AR ADR
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Types of modern slavery?
* Human trafficking
* Forced labour
* Debt labour – own money to people
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What is modern slavery?
* Modern slavery is the exploitation of people for a personal or commercial gain. It is a human rights violation.
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What is the Modern Slavery Act 2015?
* The Modern Slavery Act 2015 punishes against modern slavery, trafficking and exploitation.
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Who must produce a slavery and human trafficking statement?
* Every organisation carrying on a business in the UK with a total annual turnover of £36m or more will be required to produce a slavery and human trafficking statement for each financial year of the organisation.
118
What is within F+Gs modern slavery and trafficking statement?
* Policies and procedures for ensuring modern slavery is not present / facilitated by F+G. This includes:
o Risks – where might modern slavery be prevalent / likely to occur?
o Actions – how have F+G mitigated these risks?
o Training and awareness – Code of Conduct is mandatory each year
o Monitoring – a review of how effective the processes are
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What is a slavery and human trafficking statement?
* A slavery and human trafficking statement sets out the steps a business has taken to ensure there is no modern slavery in their own business and their supply chains.
* Produced / updated annually
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What should you consider when / if you receive a gift?
- Value
- Timeliness
- Proportionality
- Appropriateness
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What are the RICS members fees?
- APC Candidate = £167 annually
- RICS Member = £462 annually (for the first two year)
- RICS Member = £558 annually (after 2 years)
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When must your CPD be logged to the RICS [as a chartered professional]?
Final date is the 31st of January each year
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What is ‘Royal Charter’?
* The Royal Charter is a document that is, granted and signed by the Monarch on the advice of the Privy Council and gives an organisation particular rights / power [e.g. to be self-regulating]
* The Royal Charter requires RICS to “promote the usefulness of the profession for the advantage of the UK public and in other parts of the world”.
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Who grants a Royal Charter?
* The Privy Council
124
How many Byelaws are there? Name a few
There are 10 Byelaws:
1. Byelaw 1: Application and definitions
2. Byelaw 2: Membership and registration
3. Byelaw 3: Designations
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What are the RICS 5 principles of better regulation and why are they relevant?
* Proportionality: penalties and actions must reflect the scope and level of work involved.
* Accountability: those responsible can be traced and held accountable if necessary.
* Consistency: to promote confidence in the profession, a consistent high-standard of service is key.
* Targeting: regulation must reach its targeted audience otherwise it will not have the desired effect.
* Transparency: to ensure fairness and accountability regulations must be transparent. Regulations must be interpreted easily by everyone.
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Benefits of being Regulated by RICS?
1. Commitment to highest standards
2. Open to independent scrutiny
3. Ethical approach
4. Protection (via Professional Indemnity Insurance - PII)
5. Security (via Complaints Handling Procedure - CHP)
6. Guarantee of professional training and experience
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What are the Levvit and Bichard reviews?
Levitt Review (2021) - Alison Levitt
Purpose: Investigated a governance scandal at RICS involving the suppression of a critical financial audit in 2018–2019.
Findings:
- Identified serious governance failures and a culture of defensiveness and lack of transparency.
- Highlighted the marginalization of non-executive directors and poor handling of whistleblower concerns.
Impact: Led to the resignation of four senior RICS leaders and called for a broader review of the institution’s governance and purpose.
Bichard Review (2022) - Lord Bichard
Purpose: Commissioned in response to the Levitt Review to conduct a wide-ranging examination of RICS’s purpose, governance, and strategy.
Key Recommendations:
- Return control of RICS to its members, emphasizing its role as a professional body rather than a commercial enterprise.
- Simplify governance by merging the roles of President and Chair of the Governing Council.
- Establish new committees to focus on public interest and member services.
- Focus on DEI
Goal: To restore trust, improve accountability, and ensure RICS operates in the public interest.
