What is the RICS
A professional body founded in 1868 of surveyors which regulates the activities of those professionals and aims to promote the highest ethical and professional standards in the industry.
When was the RICS founded?
Who is the RICS president
How many hours of CPD are required if you qualifty?
20 per annum - 50% must be formal
What is formal CPD?
To be formal the training must have a structured programme, have learning objectives, assessed by an expert, involve interaction.
Rules of conduct for members?
- Information to the RICS
- Ethical Behaviour
What are the RICS rules for Firms
• CPD • Information to the RICS • Competency • Cooperation • Communication • Ethical Behaviour • Solvency • Service - Use of designations - Advertising - Complaints handling - Clients money - Indemnity - Arrangements for the death of a sole practitioner
What does the GDPR require you to do?
The General Data Protection Rules requires that you only keep data on third parties (tenants/ clients/ contractors) if you have a reason for doing so, if they request that you delete it then you do so, with certain types of sensitive info (passports etc..) you need to have a password protected folder.
What goes into ToE – is it okay to agree these via email?
- The clients name
- The surveyors name and firm
- The agreed scope of work
- An agreed fee basis
- The firms complaint handling procedure
- Rules on AML checks
- Limitations on liability
- An agreed timescale
What types of client accounting are there/ what do you have to do?
Either a Discretionary or General account, a general can have multiple clients but discretionary only one.
Levels of PI required.
Firm’s turnover in the preceding year Minimum limit of indemnity
£100,000 or less = £250,000
£100,001 to £200,000 = £500,000
£200,001 and above = £1,000,000
What is Runoff 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 requires firms to obtain fully retroactive
Must be maintained for at least six years.
How often are you required to do RICS ethics training?
Every three years
What is a recent piece of CPD you did? What did you learn from it?
Formal CPD delivered on Health and Safety, updated my knowledge on managing contractors and instructing works proceedures.
What is the purpose of ToE?
he purpose of an engagement letter is to set expectations on both sides of the agreement. An engagement letter is a less formal than a contract, but still a legally-binding document that can be used in a court of law.
What are the rules on handling clients money?
ensure that clients’ money can be clearly linked to the clients to whom it belongs and is protected on their behalf at all times and in particular, in the following circumstances:
● death of a sole practitioner
● misappropriation by any party
● transfer of client money to another organisation.
What would you do if you found out a clients money had been missapropriated?
Should clients’ money be misappropriated, the firm must inform RICS and, where appropriate, the Police and their insurers.
What is your firms gifts policy?
Whenever a gift or hospitality is given or received, it must be:
1. for a genuine business purpose
2. given or received openly and transparently
in compliance with relevant laws
3. appropriate in a business setting
4. declined if deemed inappropriate or unreasonable; and
5. Properly authorised (where necessary).
The thresholds for acceptance are:
● Below £50 per person: do not need to be recorded (although the rules and considerations referred to above still need to be adhered to);
● Between £50.01 – £100 per person: must be recorded in the Bidwells LLP Gifts and Hospitality Register within one month of the activity/gift being given or received;
● Between £100.01 - £250 per person: must be pre-approved by the staff member’s line manager and recorded in the Gifts and Hospitality Register (as approved by a line manager). Equity Partners to be pre-approved by the Chief Operating Officer or the Chief Financial Officer.
● Above £250.01 per person: Must be pre-approved by the Chief Operating Officer or the Chief Financial Officer.
What are the five RICS ethical and professional standards?
Act with Integrity
Always provide a high standard of service
Act in a way that promotes trust in the profession
Treat others with respect
Tell me a time when you have acted with integrity?
On a market appraisal of garden land near Oxford, a client asked me to change my assessment of the market value - I was open and honest about my assessment of the market value, showed him my basis of valuation and he agreed to accept it.
Tell me a time when you have provided a high standard of service?
As per my case study example, I secured positive pre applicaiton advice, full planning permission and agreed a sale price which both parties were happy with.
Tell me a time when you have taken responsibility?
A tenant made a complaint about our management of their property, I responded in an appropriate and professional manner and refered them to our complaints handling proceedure.
Are you able to act for a client when there is a conflict of interest?
Typcially no, unless informed consent is agreed to by both clients.
What is your firms lone working proceedures?
Dependant on the risk involved there is a risk assessment to fill in and have signed off by line manager.
If day to day, we have a whatsapp group where you can share your live location. Failing that you partner up with someone to check that you are back at a particualr time.
Keep callender up to date, share details of who you are meeting and where with your partner.
Take appropriate PPE, if that be a location device.
If too dangerous dont go alone.
What is a balance sheet?
A balance sheet is a financial statement that reports a company’s assets, liabilities and shareholders’ equity. … The balance sheet is a snapshot, representing the state of a company’s finances (what it owns and owes) as of the date of publication.
Shows a snapshot of a firms conditions.
Assets – Liabilities = New Worth of the Firm
What is a profit and loss? (income statement)
An income statement or profit and loss account is one of the financial statements of a company and shows the company’s revenues and expenses during a particular period. It indicates how the revenues are transformed into the net income or net profit.
Usually shows a period of a year
Shows whether money has been gained or lost during a period.
What would you find on a cashflow?
Cash flow forecasting is the process of obtaining an estimate or forecast of a company’s future financial position; the cash flow forecast is typically based on anticipated payments and receivables.
What is an RICS Practice Statement (PS) / Guidance Note
RICS Practice Statements are mandatory for RICS members and firms, guidance notes are good practice guides to be followed where possible.
What are the three types of Conflicts?
Own Interest Conflict
Confidential Information Conflict
Tell me a time you have promoted trust in the profession?
In my daily professional and personal life I act in this way.
I ensure all dealing with clients is done to a high standard with the utmost integrity.
When speaking with other young professionals I inform them of the values upheld by the RICS and high ethical and professional standards.
When does your CPD need to be submitted by?
31st January in each year (20 hours)
What is included in a Risk Assessment?
A list of the likely risks to be incurred and its associated hazards.
Risk = likelihood x severity, high risk areas need additional measures to protect against those risks.
Difference between a risk and a hazard?
Hazard is anything that could cause harm.
A risk is a factor of the likely hood of that hazard causeing harm and its relative severity.
What is ISO 1401?
International Standardization Organisation, the 14001 standard defines criterial for an Environmental Management System which can be used by an organisation to improve reseource efficiency, reduce waste and costs.
What is Bribery?
The offer, promise, giving, demanding or acceptance of an advantage as an inducement for an action that is illegal, unethical or a breach of trust.