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Ethics, Rules of Conduct & Professionalism Flashcards

1
Q

Background of RICS

A
  • Founded in 1868
  • Present structure of RICS created by Agenda for Change, 1998
  • Royal Charter, granted by Privy Council
  • bye-laws set out by the governance of the institution
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2
Q

Membership (and levels)

A 
1340,000 qualified members
4 levels of membership
- FRICS (5+ years MRICS, leadership role, professional/technical achievement, academic achievement or raising profile of RICS - need portfolio of prof achievement)
- MRICS
- AssocRICS
- Trainee/Student
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3
Q

RICS Governance Structure

A

Awarded Royal Charter by Privy Council
Governing Council runs RICS, provides mgmt and strategic dirrection
Regulatory Board, Audit Committee and Management Board report to Governing Council
17 specialist professional groups covering property, land and construction (each group has elected board and is responsible for outlining standards of competence/practice

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4
Q

UK Structure

A 
4 National Associations
12 Regional Boards
Local Associations
CEO - Sean Tompkins
President - Timothy Neal
President Elect - Kath Fontana
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5
Q

Role of RICS

A

Accountable to both members and the public
It is involved in policy influence and political engagement
Undertakes regular market surveys
RICS 3 main roles:
1. maintain highest standards of education and training
2. Protect consumers through strict regulation of professional standards
3. Be leading source of information and independent advice on land, property, construction and associated envrionmental issues
Benefits of being a member status, recognition, market advantage, knowledge, network

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6
Q

RICS Global Professional and Ethical Standards, 2015

A
  1. Act with integrity (honesty, transparency, respecting confidential information, not allowing conflicts of interest, not accepting bribes)
  2. Always provide a high standard of service (act within scope of competence and do work to high standard)
  3. Act in a way that promotes trust in the profession (positive and professional, fulfill obligations)
  4. Treat others with respect (politeness and consider cultural sensitivities)
  5. Take responsibility (be accountable for your actions)
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7
Q

Importance of Ethics

A

Acts as anchor to appropriate behaviour.
Ensure consistency and clarity irrespective of changing factors such as state of economy or business practices in different market places.
Promotes the profession as a whole.
Supporting information: RICS Decision Tree, case studies of scenarios, RICS Regulation Confidential Hotline

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8
Q

International Ethics Standards, Dec 2016 (don’t need to learn)

A
  • Published by International Ethics Standards Coalition, promoted by RICS
    1. Accountability
    2. Confidentiality
    3. Conflict of Interest (disclosure, mgmt, avoidance)
    4. Financial Responsibility (transparent)
    5. Integrity
    6. Lawfulness
    7. Reflection
    8. Standard of Service
    9. Transparency
    10. Trust
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9
Q

Rules of Conduct for Members, March 2020

A

PART I
1. Interpretation (member means Chartered or non-charters, honorary or attached)
3. Communication via post, fax, email, telephone, in person
PART II
3. Ethical behaviour (integrity, avoid conflict of interest, avoid any situ that’s inconsistent with professional obligation)
4. Competence (skill, care and diligence)
5. Service (timely, standard)
6. Must comply with CPD requirements
7. Solvency (personal and professional finances to be managed properly)
8. Information to RICS (submit in timely manner and in whatever form Standards and Regulation Board requires)
9. Cooperation (comply with RICS staff and anyone appointed by Standards and Regulation Board

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10
Q

Rules of Conduct for Firms, March 2020

A

PART I
1. Interpretation
Providing a surveying pervice to the public means acting to provide a service considered by RICS to be within those which are the responsibility of RICS professional Groups to clinets
Contact office means individual designated by the Firm to be main liason point between firm and RICS and person authorised to submit firms annual return
Firm means a) whole or part of any body corporate, b) a partnership, C) LLP, D) unincorporated practice of sole practitioner doing survey or related service, regulated by RICS, e) equivalent in world regions of a-e
2. Communication, RICS will communicate with members by any of the following:
post, fax, email, telephone, in person
PART II CONDUCT OF BUSINESS
3. Professional behaviour (act with integrity, avoid conflict of interest, avoid situ’s inconsistent with professional obligations
4. Competence (due skill, care and diligence and with regard to technical standard expected)
5. Service (expedition and proper regard for standard of service and customer care expected)
6. Training and CPD (necessary procedures in place to ensure all staff are properly trained and competant)
7. Complaints handling (company must have complaints handling procedure and maintain complaints log, including ADR mechanism that is apporved by Standards and REgulation Board)
8. Clients Money (preserve security of clients money entrusted to its care in course of practice or business)
9. Indemnity (all previous and current professional work is covered by adequate and appropriate indemnity cover which meets standards approved by Standards and Regulation Board)
PART III FIRM ADMINISTRATION
10. Advertising (propmote services only in a trthful and responsible manner)
11. Solvency (all finances managed appropriately)
12. Arrangements to cover the incapacity or death of a sole practitioner (a firm that has a sole principal (eg. sole practitioner or sole director in corprate practice) shall have in place appropraite arrangements in the over of sole practitioners death/incapacity/other extended absences)
13. Use of designations (firms registed for regulation must display in business literature a designation to denote it is regulated by RICS
14. Information to RICS (firm to sumbit in timely manner such information about activities and in such form the Standards and REgulation Board may require)
15. Cooperation (firm shall cooperate fully with RICS staff and any person appointed by Standards and Regulation Board)

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11
Q

Disciplinary Procedures

A

Self-regulation by RICSActions range from cautions to expulsions or deregistration of Regulated Members
Less serious cases where regulated member admits allegations, Regulated Compliance Order can be used to ensure future compliance
Disciplinary procedure can be triggered by someone complaining to RICS, allegation by client, or because of information estalbished by RICS
3 levels of disclipnary actions: action by head of regulation, disciplinary planel, appeal panel
Common breaches include passing on information shared by a client in a report, repeated failure to communicate, company director failing to pay taxes and continuing to trade knowing the company was insolvent

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12
Q

Disciplanary: Initial Investigation Stage and Penalties

A

First step: formal investigation by head of Regulation of RICS, who can then initiate one of 3 following actions upon completion of investigation if he considers disciplinary action to be required:
1. Serve and Fixed Penalty Notice (used for breaches of rules relating only to supply of information to RICS)
2. Make a Consent Order (for low level breach, eg accounts regulations which can be easily corrected). It is a written doc that states terms upon which member/firm must take or desist from taking certain actions in a specified time
3. CPD Sanctions (obligation on member to follow CPD requirement)
4. Refer matter to Disciplinary Panel (for more serious breaches, Head of Regulation can consider a hearing is required, 50% of this panel are lay members not RICS members)
Penalties: issue consent order, impose unlimited amount of fine per breach proportionate to offence, impose conditions to continued RICS registration, expulsion from membership, publish results of hearing to Modus RICs website or local newspaper to firm
APPEAL PANEL
considers firm/members appeal against above, reviews decision with regard to evidence previously presented and any representation. Appeal Board can allow appeal and vary penalty imposed. 50% of panel are lay members.
RICS proposing to set up RICS Regulatory Tribunal

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13
Q

International Standards

A

MANDATORY

  • International Valuation Standards January 2020
  • International Ethics Standards December 2016
  • International Property Measurement Standards September 2019
  • International Construction Measurement Standards September 2019
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14
Q

Professional Statements

A

MANDATORY

  • Conflicts of Interest, 2017
  • Conflicts of Interest UK Commercial Property Market Investment Agency
  • UK Commercial Real Estate Agency, 2016
  • UK Residential Real Estate Agency, 2017
  • Real Estate Management, 2016
  • Property Measurement 2018
  • Service Charges in Commercial Property 2018
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15
Q

Practice Statements

A

MANDATORY

  • Surveyors acting as Expert Witness, 2014
  • Home Buyer Report, 2016
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16
Q

Guidance Notes

A

VOLUNTARY

  • Complaints Handling 2016
  • Contractors Basis of valuation of rating purposes 2017
  • Surveying Safely 2018
  • Rating Appeals 2017
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17
Q

Codes of Practices

A

MANDATORY/GOOD PRACITCE AS PER EACH

- Rating Consultancy Code of Practice 2017

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18
Q

Information Papers

A

Up to date information on specific topics:

- Japanese Knotweed and residential property

19
Q

Help Sheets

A

Supports Rules of Conduct, provide detailed information on aspects of regulation for members including CPD and advice for sole practitioners

20
Q

Consumer Guides

A

Short notes which introduce key topics and background information
- Letting a Property

21
Q

Fee Negotiation

A
  • Firms should avoid price fixing, agressive fee cutting (although healthy competition encouraged) or collusion with competitors
  • Fixed scale charges forsurveyors abolished in 1980s
  • Fees should be market based and agreed on ad-hoc basis with clients
  • You can enter further fee negotiations after sumbitting initial fee but need to be professional (can vary level of service when renegotiating initial fee proposal but need to be able to provide high standard of service)
  • Do not undercut firms
  • Remember RICS Global and Ethical Standards, 2015 and Rules of Conduct 2007 as amended
  • must be transparent with clients to understand you may be in receipt of, or offering, a referral fee and state in terms of engagement if applicable
  • The granting and acceptance of referral fees should also be considered in context of Bribery Act 2010 and RICS Global Professional and Ethical Standards 2015
  • 4 Somerset estate agents prosecuted by Competition and Markets Authority for admitting illegal price fixing in May 2017, fined £370,000. Agents colluded to set minimum commission rates of resi property sales at 1.5%
22
Q

Terms of Engagement

A

Must include clients agreement for proposed fees, payment of expenses and how calculates and that copy of firms complaint handling procedure is available upon request
1. check professionally competent
2. No conflict of interest
3. Confirm terms of engagement in writing and get written client approval before starting work
Compliance with Section 18 Estate Agents Act 1979 and money laundering checks (Money Laundering Regulations, 2017) for agency work
Consumer Rights Act 2015 - 14 days cooling off period
Reasons to decline a client: not competent, don’t have sufficient facts, conflict of interest, PII insurance liability cap cant be agreed, work is on pro bono basis and PII does not cover, potential client is in UK Gov sanctions list, CONSIDER DECISION TREE

23
Q

Professional and Ethical Standards Decision Tree

A

framework of questions on RICS website which members should ask themselves when facing a situation in which they are asked to act in a potentially unethical manner
Ultimate test is whether members would be content to have their decisions or actions made public
Encourages members to consider legality of actions and consistency with RICS Global and Professional Ethics Standards
RICS Regulation Confidential Hotline is a service offering members assistance with ethical decisions

24
Q

What are Conflicts of Interest

A

Any financial interest, personal interest, commercial relationships, acting on both sides of transaction
Eg: when asked to act for 2 clients within a practice in respect of a single transaction - ie buying and selling or acting for landlord and tenant
Personal insterst when acting for family of a connected person of whom you could benefit, this cannot influence professional judgement, full transparency required, decalre facts promptly in writing before accepting instruction (remember s21 of Estate Agents Act 1979 declaration required for agency work)
Conflict avoidance is not accepting instruction
Conflict Mgmt is when instruction is accepted, steps agreed and put in place to manage conflict (eg. information/ethical barrier), with written agreement of all parties

25
Q

RICS Global Professional Statement on Conflicts of Interest 2017

A
  • member must not advise a client where doing so would involve conflict of interest other than when all involved have provided informed consent (this can only be done when RICS member or regulated firm is satisfied proceeding despite CoI is not illegal)
    3 types of COI
    1. part conflict (work on same/related instruction for 2 different parties)
    2. own interest conflict (personal interest)
    3. confidential information conflict (relating to work between two parties which is confidential)
    INFORMED CONSENT can only be given in writing if person explaining position is entirely transparent about material factors and sure 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)
  • Evey RICS firm must have in place effective systems and controls appropriate to the size and complexity of their business to ensure full compliance and must keep records to show compliance with statement
26
Q

How to handle a conflict of interest

A

STEP 1 - CONFLICT AVOIDANCE
- upon receipt of full facts, consider whether conflict is irresolvable with impartially compromised and should be avoided or if can be managed through transparency and openness
- decide whether to accept or decline
STEP 2 - WRITTEN ADVICE TO BOTH PARTIES
If you accept instruction
- disclose nature of conflict, circumstances surrounding and other relevant facts and how firm proposes to deal with conflict such as setting up of information/ethical barrier
- be clear and ensure both parties can make own decision (inform them to seek independant advice if needed)
- request written confirmation from both clients of informed consent that firm can act in accordance with provisions of procedure proposed
STEP 3 - CONFLICT MANAGEMENT (use of ethical barriers)
- must be robust so no information passes between 2 parties
- must take reasonable steps to operate barrier
- surveyors must be physically seperated
- all information regarding the instruction must be securely stored
- clear audit trail of all written and oral comms and firms compliance offier must oversee all actions

27
Q

RICS Professional Statement Conflicts of Interest - UK Commercial Property Market Investment Agency 2017

A

Relates only to UK commercial investment agency work where specific risk is identified
DUAL AGENCY
- cannot be undertaken at any time
MULTIPLE INTRODUCTIONS
- agent must set out in terms of engagement if exclusive or non-exclusive basis (if exclusive, other prospective buyers whom the agent was in contact with must be informed the agent can no longer advise)
INCREMENTAL ADVICE
eg. if agent is acting for seller in relation to disposal but is approached by buyer or lender to provide valuation
- only provide incremental advise if consent is given and info barrier in place

28
Q

Bribery Act 2010

A

A brbibe can be giving, offering, promosing or receiving an advatage eg. payment, gift, service for an action which is illegal or a breach of trust
6 Principles:
1. Proportionality, 2. Top level commitment, 3. Risk Assessment, 4. Due Diligence, 5. Communication, 6. Monitoring and Review
4 Offences:
1. Bribing, 2. Recieving a bribe, 3. Bribing a foreign public official, 4. Failing to prevent bribery
- Companies respensible for employees corrupt acts unless they can show they had adequate policies to combat bribery
- hospitality not prohibitate, if responsible and proportionate, if recorded on gift register
- companies must meet guidance to prove they have taken steps to prevent bribery, including identifying potential risks, staff training, clear policies, regular reviews
- for cash, no payments over E10k as per Money Laundering Regulations 2017
- consider income tax liability for gifts in kind
- no gifts or hospitality from 3rd parties
Penalties:
- policed by Serious Fraud Office
- maximum 10 years in prison / unlimited fine for individuals, for companies an unlimited fine
Sweett Group 2016 (bribe offered to win Middle Eastern business by their subsidiary company and fined £1.4m, RICS then fined £125k)

29
Q

Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017

A

Money laundering is when proceeds of criminal activites are converted and realised as legit assets
Key provisions:
1. conduct written money laundering and terrorist financing risk assessment for firm
2. Implement systems, policies and controls and procedures to address money laundering and terrorist financing risks and meet requirements under regulations
3. Adopt appropriate internal controls
4. Provide staff training
5. Comply with new customer due diligence
6. Comply with requirements relating to politically exposed persons (PEPs)
7. Ensure appropriate record keeping, policies and procedures
8. AML checks must be undertaken to confirm identity of proposed puchaser of property and check source of funds before exchanging contracts
Key checks:
PublicLC - London Stock exchange listing
Publicly accountable body - gov ownership/control
PrivateLC - certificate of incorporation, registered details and names of all directors and shareholders over 25% holding and identification of high risk client
Private individual - passport/driving licence, bank statement etc not more than 3 months old
Other key points:
- firms must register with HMRC annually
- limit of E10k cash accepted
- on-going business relationships to be montiored
- RICS issued list of red flag indicators (eg. secretive, is PEP, witholds info)
- detailed record of procudures kept
- board member or senior staff must be appointed to take responsibility for compliance suspicions with Suspicious Activity Report to National Crime Agency
- firm to maintain record for minimum 5 years
- HMRC responsible for policing regulations for estate agents
Penalties:
- max 14 years in prison and unlimited fine for assisting money laundering
- max 5 years in prison and unlimited fine for tipping off person by informing them they are under suspicision

30
Q

Levels of Due Diligence

A

CDD (Customer Due Diligence)

  • identify client and verify identity using independant source (passport/driving licence)
  • if applicable, identify beneficial owners of client
  • if a company, registered name address and number required
  • names of directors required unless company on regulated market
  • obtain info on purpose and intended nature of busines relationship and proposed funding arrangements as appropriate

EDD (Enhanced due diligence)

  • additional procudures (more detailed examination ain background and purpose of transaction and increased monitoring) for transaction or business relationship involving person established in high risk third country or politically exposed person or PEP family member/business associate
  • PEP = someone with prominent public position, generally presents higher risk for potential involvement in bribery / corruption by virtue of positiona and influence held

SDD (Simplified Due Diligence)
- transactions where there is low risk of money laundering or terrist financing

31
Q

Proceeds of Crime Act 2002

A

provides powers for enforcement authorites in UK to recover in criminal/civil proceedings money and other asset deemed to be proceeds of crime.
creates set of criminal offences intended to combat money laundering (AML offences).
3 main areas of offence:
1. concealing criminal property
2. arrangements (if person enters or becomes concerned in arragement which they know or suspect facilitates acquisition, retention, use or control of criminal property
3. acquisition use and possession of criminal property

32
Q

RICS Professional Statement - Countering bribery, corruption, money laundering and terroriest financing, 2019

A

PART 1 - MANDATORY REQUIREMENTS
Bribery and corruption:
- must not offer or accept bribes, have procedures that comply with law, report suspicion to relevant authority, act with due diligence, retain records to show firm has met requirements
Money laundering and terrorist financing:
- do not facilitate or be complicit, have systems to comply with laws, report suspicion, evaluate risks presented, only use 3rd party quality checks if confident in quality of info, understand client and purpose of instruction, ID checks, retain records to show firm has met requirements
PART 2 - GUIDANCE
- written policy in place, code of behaviour for staff, transparency, use gifts register, provide staff training, senior mgmt take control of procedures, keep up to date with legislation
PART 3 - SUPPLEMENTARY GUIDANCE
- establish risk-based approach (3 w’s), dealing with PEPs, need to identify beneficial ownership of a company, partnership or trust eg by Certificate of Incorporation or Annual Return of company

33
Q

CPD

A
  1. member undertake minimum of 20 hours per annum
  2. of 20 hours, at least 10 must be formal
  3. all members must maintain relevant and current understanding of RICS Professional and Ethical Standards during rolling 3 year period
  4. Must record CPD using RICS CPD Management System on RICS website

FORMAL CPD
- structured learning (online training, courses, seminars, self-managed learning assessed by 3rd party)
INFORMAL CPD
- self-managed learning relevant to professional role

34
Q

Confidentiality

A

RICS Bye-Laws state that client confidentiality must be maintained for all client affairs including historic info and info provided prior to instruction
If 3rd party wants to access your files must get client permission (unless statutory duty overrides eg. police or HMRC investigation)
Old files must be held for a minimum of 6 years before disposal and destroyed securely
If surveyor finds out confidential information regarding party that is not their client, the client and sender should be advised of error and matter should be recorded in note of firms compliance officer
Any confidential info recieved in error should be securely disposed of

35
Q

Complaints Handling Procedures

A 
RICS Guidance Note on Complaints Handling 2016
A firms written complaints handling procedure must be approved by RICS
PII insurers must be notified as soon as possible if there is a complaint that could lead to a negligence claim
Details of CHP should be givens to client with terms of business
Complaints log must be maintained to show details, progress and outcome of complaints
Must have RICS approved ADR mechanism in CHP
STAGE 1 (IN-HOUSE)
details of CHP should be issued when firm recieving complaint from valid complainant to whom the firm owes duty of care, procedure needs to be quick clear and transparent, details of nominated person to investigate complaint (complaint handling officer) must be states as the person to contact in first instance, complaint must be made in writing, procedures and timescales to be followed are to be recorded, complaint should be acknowledged within 10 days and investigated within 28 days
STAGE 2 - ADR (3rd Part resolution)
- if complainant not happy with review, 2nd stage of CHP insolves independant redress scheme which firm has chosen to use, name of relevant appropriate redress mechanism to be provided to complainant eg Centre for Rispute Resolution, Property Redress Scheme and RICS Dispute Resolution Service
RICS should only become involved if a member fails to respond to compalinant or prevents party gaining access to an independant redress mechanism
A sole practitioner must nominate a surveyor in another firm to act as complaints handling officer
36
Q

Negligence & Case Law

A

Duty of care exists to clients, when breached & loss, there is a claim for damages.
YIANNI V EDWIN EVANS 1981 - resi valuer instructed by mortgagee also has duty of care in tort to mortgagor purchaser relying on valuation
SCULLION V BANK OF SCOTLAND PLC (T/A COLLEYS) 2010 - valuation report for a flat in Surrey, Court of Appeal helf that surveyor who provides advice to lender on buy-to-let does not owe duty of cute to borrower who is seeking fundering, over-turning original court decision
Margin of error allowed in permissible range:
SINGER & FRIEDLANDER LTD V JD WOOD 1977 - usual margin of error can be varied, and will be narrower for relatively straightforward valuations and wider for more complex
K/S LINCOLN & OTHERS V CBRE 2010 - 4 hotels valuation in 2005, judge stated appropraite margin may be +/-5% for standard resi property, or =/-10% for one-off commercial property, if exeptional property features +/-15%
DUNFERMLINE BUILDING SOCIETY V CBRE 2017 - asssumed acceptable margin of error of +/-15%, case dismissed on basis Court determined market value was within this

37
Q

Limitation Act 1980

A

Limitation periods for legligence:
Contract - 6 years from date of negligent act, breach of contract or omission. Section 14A also provides alternative limited period of 3 years from date of knowledge of damage subject to 15 years long stop from negligent act of omission
Tort - 6 years from date claimant suffered loss

38
Q

Avoidance of negligence

A
  • clearly understand clients objectives and confirm precise instructions in writing in terms of engagement
  • ensure competent to undertake instruction
  • undertake work in accordance with relevant RICS Standards and Guidance notes
  • make detailed file notes and take photos
  • keep up to date with market knowledge, legislation and undertake/record CPD
  • cap professional liability excess on PII policiy in terms of engagement
39
Q

Professional Indemnity Insurance (mandatory)

A

RICS Professional Indemnity Insurance Requirements 2019
- All policies must be underwritten by RICS approved insurer
- Minimum requirements of minimum level of indemnity needed per claim base on firm turnover:
£100k or less = £250k
£100k-£200k = £500k
£200k+ = £1m
(if new business, estimate turnover and adjust accordingly)
- Max level of unisnsured excess required by RICS:
liability up to £500k = greater of 2.5% of sum or £10k
liability over £500k = 2.5% of sum insured
Policy must be retroactive, work on claims made basis
- Cert sent annually to RICS as part of firms annual return to RICS
-appropraite run off cover required following ceasing trading (consumer claim - minimum £1m aggregate cover over minimum 6 years, commercial claims appripriate for 6 years, although RICS recommends more lengthy cover as claims can be made up to 15 years after work undertaken)
- firms unable to obtain run-off cover from incumbent insurer or open market can apply for coverage to RICS run-off pool
- PII needed for pro-bono work to charities or friends
- RICS Assigned RICS Pool at a cost for member who cant arrange cover
- RICS Low Earners Scheme for retired/part-time
- early notification to insurer required if a potential claim
- RICS has members support service for members facing claims for work carried out by employer that has gone into administration
- most firms cap liability with clients for individual instructions
- PII, Risk, Uncertainty and Insurance In Valuation Work 2018 covers Courts approach to valuers liabilities, liability caps, and PII

40
Q

Handling Clients Money (holding deposits, rent, service charges, retentions)

A

RICS Clients Money: General advice for firms 2011
1. Obligation to keep client accounts
2. Obligation to keep accurate records
3. Reporting obligations
- keep client accounts seperate and clearly identifiable
- word client must be on bank account and cheque book
- client must be able to have monies on demand
- agree payment of interest with client and accounts must be kept in credit
- regular bank reconcilliaton checking payments recieved are transferred to bank acct and expenditure checked monthly
- keep accourate records with running balance available
- annual audit and reporting by certified accountant employed by RiCS
- money can only be withdrawn from client account if properly required
- if cash transactions used, records of cash receipts must be kept
- 2 signatories must be agreed with authorised staff
- discrete account for single named client only
- RICS Regulatory Review Visits of Inspection usually on 3 years basis by RICS employed accountant
RICS Client Money Protection Scheme - last resort protection when RICS regulated firm unable to repay clients money, 2 parts: client money protection for surveying services (general client money protection covering money held by firms undertaking surveying acitivities), Client money protection for resi agents
- all firms handling client money need to display procedures on website (resi agencies also need to display scheme membership cert in premises)

41
Q

Starting a new practice - RICS Compliance

A
  • inform RICS of new practice through Firm Detail Form
  • appoint Contact Officer for all RICS comms
  • Register with RICS for regulation of firm by regulatory board
  • Arrange PII and send to RICS
  • set up procedures for Members Accounts Regulations for handling clients money including Client Money Protection scheme details
  • register for RICS Valuation REgistration Scheme if undertaking Red Book vals work
  • obtain RICS approval for Complaints Handling Scheme, set up complaints log and compalints handling officer
  • obtain logo kit from RICS to use to produce all practice material
  • plan for succession/future running of business if sole practicioner
  • ensure CPD logged
  • set up staff training plan
  • ensure completion of online RICS Annual Return at end of each year
42
Q

Starting a new practice - Statutory compliance

A
  • disclose business name
  • Disability discrimination compliance(Equality Act 2010)
  • Financial services compliance (Financial Services and Markets Act 2000 and Financial Services Act 2012)
  • Bribery Act 2010 compliance
  • Appoint Money Laundering Reporting Officer (Money Laundering Regs 2017)
  • H&S compliance (H&S Act 1974)
  • asbestos register (Control of Asbestos Regulations 2012)
  • fire safety compliance (regulatory reform fire safety order 2005)
  • register for data protection (general data protection regulation 2016 and data protection act 2018)
  • set up estate agency complaicne (estate agency act 1979, comsumer protection regulations 2008, misrepresentation act 1967)
  • inform hmrc for VAT and tax registration (check VAT registration threshold)
  • ensure compliance with current employment law i.e. national living wage, stakeholder pensions, gender pay gap reporting etc
  • ensure insurance compliance for employer and public liability
43
Q

Closing a practice - RICS compliance

A
  • inform RICS of closure
  • ensure clients informed at earliest opportunity and hand over arrangements to new firm
  • return any monies held by clients to their own acounts
  • inform insurers and procure PII run off cover for a minimum of 6 years from expiry of policy in force at time of cessation in accordance with RICS requirements
  • retain copy of client files and records for minimum 6 years

Revision (13 decks)

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