Hot Topics 2024

Question 1

When did the new Rules of Conduct take effect?

Answer 1

February 2022

Question 2

What 3 docs does the Rules of Conduct overhaul?

Answer 2

1. Rules of Conduct for Members
2. Rules of Conductor for Firms
3. Global Professional and Ethical Standards

Question 3

Why did the rules change?

Answer 3

To provide a single document to enable greater clarity for RICS members and firms.

Now a greater focus on clearer example behaviors, understanding evolving technology and tackling climate change.

Question 4

What are the new Rules of Conduct?

Answer 4

M&Fs must be honest, act with integrity and comply with their professional obligations, including obligations to RICS.

M&Fs must maintain their professional competence and ensure that services are provided by competent individuals who have the necessary expertise.

M&Fs must provide good quality ad diligent service.

M&Fs must treat others with respect and encourage diversity and inclusion.

M&Fs must act in the public interest, take responsibility for their actions and act to prevent harm and maintain public confidence in the profession.

Question 5

What are the professional obligations of members?

Answer 5

Members must comply with the CPD requirements set by the RICS which requires 20 hours of CPD for each calendar year, 10 hours of which must be formal CPD.

Members must co-operate with RICS.

Members must promptly provide all information reasonably requested by the Standards and Regulation Board, or those exercising delegated authority on its behalf.

Question 6

Why did the previous rules of conduct change?

Answer 6

The previous rules had been in place since 2007.

Following research and consultation with RICS Members, Firms and members of the public, the majority voted in favour of replacing the existing Rules of Conduct and separate Global Professional and Ethical Standards.

This was to provide a single document to enable greater clarity for RICS Members and firms.

There is now a greater focus on clearer example behaviours, understanding evolving technology and tackling climate change.

Question 7

What are the professional obligations of firms?

Answer 7

1. Complaints handling procedure including ADR provider approved by RICS and complaints log.
2. PI cover that meets RICS standards.
3. If sole principle, arrangements for professional work to continue in event of death.
4. Cooperate with the RICS.
5. Provide info to Standards and Regulations Board if requested
6. Must abide by RICS’ published policy
7. Report any matters required to under the Rules for the Registration of Firms

Question 8

What is the RICS motto?

Answer 8

There is measure in all things.

Question 9

Who is the RICS president?

Answer 9

Tina Paillet

Question 10

Who is the RICS president Elect?

Answer 10

Justin Sullivan

Question 11

Who is CEO of the RICS?

Answer 11

Justin Young

Question 12

What is the RICS Mission Statement?

Answer 12

• To qualify and equip their members to offer the highest standards of professional service.
• To promote and enforce standards.
• To lead solutions to the major challenges facing the built environment through professional expertise.

Question 13

What does the RICS Governing Council do?

Answer 13

It is the highest governing body and sets RICS global strategy and ensures the RICS fulfils its Royal Charter obligations.

Question 14

When was the RICS founded?

Answer 14

1868

Question 15

When did the RICS receive it’s Royal Charter?

Answer 15

1881

Question 16

What are Bye-Laws?

Answer 16

Bye-Laws are set out in the Royal Charter and determine how the RICS is regulated.

Question 17

How many Bye-Laws are there?

Answer 17

10

Question 18

Give some examples of the Bye-Laws?

Answer 18

Bye-Law 1: Application and Definitions

Bye-Law 2: Membership and Registration

Bye-Law 3: Designations

Bye-Law 4: Contributions to Funds

Bye-Law 5: Conduct

Bye-Law 6: Governing Council, Officers and Staff

Bye-Law 7: Subordinate Boards, Committees and Groups

Bye-Law 8: Procedure for General Meetings

Bye-Law 9: Accounts and Audit

Bye-Law 10: Regulation

Question 19

What are RICS Regulations?

Answer 19

The regulations add further details to the bye-laws and sets out the different classes of membership and contains further details of when fees are payable etc.

Question 20

How many regulations are there?

Answer 20

10

Question 21

How much is the RICS Membership?

Answer 21

GBP 539

Question 22

What are the FIVE principles of better regulation?

Answer 22

1. Proportionality
2. Accountability
3. Consistency
4. Targeting
5. Transparency

Question 23

Why have Rules of Conduct?

Answer 23

• It’s a framework we can all work to.
• Client knows they are getting a set level of service.
• A useful professional guide for individual members.

Question 24

How is the RICS structured?

Answer 24

• Governed by its Royal Charter (1881).
• Self-regulated and internally monitored by it’s Bye-Laws.
• Governing Council manage and agree strategy.
• Regulatory board, audit committee and Management board execute the strategy.

Question 25

When were the RICS Professional Indemnity Requirements updated?

Answer 25

Updated following issue of UK Professional Indemnity Insurance requirements Version 9 with effect 1st April 2022 (changes to maximum uninsured excess - previously based on level of cover).

Question 26

What is the purpose of PII?

Answer 26

- To provide financial cover in the event a client suffers financial loss as a breach of professional duty. - The professional is protected from financial losses. - The firm does not have to meet the claim from their own assets and resources.

Question 27

On what basis is PII underwritten in the UK?

Answer 27

- On a claims made basis. - The insurance policy used is the one at the time of breach (not when breach is made).

Question 28

What limitation periods are in place under hand and deed forms of contract?

Answer 28

6 years when executed under hand. 12 years when executed as a deed.

Question 29

What are the minimum levels of indemnity?

Answer 29

If firms turnover: <£100k = £250 cover £100k-£200k = £500k cover £200k+ = £1m cover

Question 30

What are the PII excess requirements?

Answer 30

Based on turnover, the MAXIMUM excess is as follows: <£10m turnover = greater of £10,000 or 2.5% of insured sum. £10m+ turnover = no maximum limit of uninsured excess

Question 31

What happened in Merrit vs Babb?

Answer 31

Surveyor sued for negligence by client. As firm shut down the individual surveyor was perused for damages successfully. Need to ensure run-off cover in place.

Question 32

What is the RICS requirement for having run off cover?

Answer 32

Must be in place for AT LEAST 6 years.

Question 33

Who should the PI cover include?

Answer 33

Past and present employees, directors and partners.

Question 34

What are the steps for setting your own firm?

Answer 34

1. Contact RICS for company start up pack 2. Inform RICS and register for regulation 3. Appoint contact officer for RICS communication 4. Prepare complaints handling procedure 5. Obtain PI cover. 6. Abide by Rules of Conduct for Firms 7. Use designation 'Regulated by RICS' on all practice material.

Question 35

What are professional obligations of firms?

Answer 35

1. Complaints handling procedure (RICS approved ADR provided and maintain log) 2. PI cover 3. Arrangements if sole principal for death/incapacity 4. Cooperate with RICS 5. Info for standards and regs boards 6. Firms display literature in accordance with RICS policy 7. Report any matter required to Registration of firms

Question 35

What should be included in the Complaints Handling Procedure?

Answer 35

Minimum 2 stage procedure with redress mechanism. Policy issued in Terms of Engagement. Complaint must be investigated within 28 days. Note to advice PI Insurers immediately.

Question 36

What TEN things must RICS regulated firms do when handling clients money?

Answer 36

1. Clear duties for employees 2. A Principal to oversee 3. Principals cannot override controls. 4. Competent staff 5. Accounting systems secure 6. Kept separate in 'client' named account 7. Clients should always have access to funds 8. Agree terms and advise client on bank details 9. The account must not be overdrawn 10. Maintain client ledgers and provide running balance.

Question 37

How do you carry out the annual return? What if you don't?

Answer 37

Annual return (online) Failure to do so leads to fixed penalty.

Question 38

What FIVE things are included in the annual return?

Answer 38

1. Type of business and staffing. 2. Nature of clients. 3. Training provision. 4. PI insurance details. 5. Whether a firm holds clients' money.

Question 39

Are you aware of any guidance that applies to RICS members when using social media?

Answer 39

Guidance Note ‘Use of Social Media: Guidance for Members Version 1' Effective June 2021 Rules of Conduct should be applied to social media.

Question 40

How do you ensure you operate inline with RICS guidance on the use of social media?

Answer 40

Be responsible and professional. Use respectful language . Never be dishonest or cause offence. Realise public confidence risk in trust in profession.

Question 41

When would the RICS investigate a Social Media post made by one of its members?

Answer 41

If it is: o Discriminatory. o Dishonest. o Abusive or threatening. o Likely to cause significant harm, distress or offence to a person. o Shows a pattern of frequent or large number of concerning communications. o Ignores previous advice or warnings about concerns.

Question 42

Please explain your understanding of the recent updates to RICS Professional Indemnity Insurance Cover around Fire Safety?

Answer 42

Fire safety cover removed from PII following Grenfell.