Part 1: RICS Requirements Flashcards
(49 cards)
1
Q
When was RICS founded?
A
1868
2
Q
Who granted RICS royal charter and when was it?
A
Privy council - 1881
3
Q
What is the current governance structure?
A
Privy Council
Governing Council
Regulatory Board
4
Q
How many specialist groups are there?
A
17 which include some of the following:
- Building Control
- Building Surveying
- Commercial Property
- Planning and Development
5
Q
What is the role of RICS?
A
Promotes and enforces the highest professional qualifications and standards in the development and management of land, real estate, construction and infrastructure.
6
Q
What sets out the governance of the institution?
A
RICS Regulations and Bye Laws
7
Q
What is a bye law?
A
Rule which controls how an organisation is run
8
Q
What are some of the RICS bye laws and how may are there?
A
10 in all:
- Applications + Definitions
- Membership + Registration
- Designations
- Contribution to funds
- Conduct
- Governing Council, Offices + Staff
- Subordinate Boards, Committees + Groups
- Procedure for general meetings
- Accounts + audit
- General
9
Q
What are the three main goals of RICS?
A
- Maintain highest standards of education and training
- Protect consumers through regulation of professional standards
- Be the leading source of information and independent advice on land, property, construction and associated environmental issues.
10
Q
What is the Bichard Review?
A
Independent review by Lord Michael into the purpose of RICS and it’s Governing Council.
Lord Bichard made 7 key reccomend around which include the following:
- Independent review every 5 years
- Increased focus on the public interest remit at RICS and creating a public interest panel to advise the Governing Council
- Greater focus on issues that matter to society such as climate change and sustainability
- Greater focus on diversity and inclusion across the profession
- New simpler governance structure
- Maintaining self regulation
11
Q
Why do you want to become a RICS member?
A
To further develop my career in the property industry and be able to provide client confidence by MRICS status.
I will also be able to utilise the market advantages and wider knowledge and network from having an access to thousands of other members.
12
Q
What are the benefits of becoming a RICS member?
A
- Status
- Recognition
- Market advantage
- Knowledge
- Network
13
Q
What are the benefits of a RICS firm?
A
- Confidence - firms are monitored by regulation
- Professionalism - clear impartial expert advice.
- Security - complaints procedure, access to independent redress and PII cover.
14
Q
What is required in an annual return?
A
- Type of business and staffing details
- Name of responsible principle
- Statutory regulated activities - such as for financial services
- Nature of clients
- Complaints handling procedure details and records
- PI insurance details
- Whether the firm holds clients money
15
Q
What are the RICS rules of conduct?
A
Apply to both members and firms and are as follows:
- honest, act with integrity and comply with their personal obligations and obligations to RICS.
- Maintain professional competency and that services are carried about by competent individuals with the necessary expertise.
- Provide good quality diligent service.
- Treat others with respect and encourage diversity and inclusion.
- Act in the public interest, take responsibility for their actions, act to prevent harm and maintain public confidence in the profession.
16
Q
When were the rules of conduct effective from?
A
2nd February 2022
17
Q
Why were the rules of conduct updated?
A
- Simpler Structure
- To provide clear examples
- To focus on respect, diversity and inclusion.
- Understand evolving technology
- Tackle global challenges
18
Q
What is Appendix A to the rules of conduct?
A
This sets out mandatory professional obligations for both members and firms.
There are 7 for firms and 3 for members.
19
Q
What are the professional obligations for firms?
A
- Publish CHP
- Ensure that all previous / current work covered by adequate PII
- If sole principal make arrangements for pro work to continue in event of incapacity, death, absence from or inability to work.
- Cooperate with RICS
- Promptly provide all information requested by Standards and Regulation Board or those with authority to act on its behalf.
- Display a designation to denote they are regulated by RICS
- Report to RICS any matter they are required to under rules of registration of firms.
20
Q
What are the professional obligations for members?
A
- Comply with CPD requirements
- Cooperate with RICS
- Promptly provide all information requested by Standards and Regulatory Board or anyone authorised to act on their behalf.
21
Q
What is the Ethics Decision Tree?
A
Framework of questions members should ask themselves when they are asked to act in a potentially unethical manner or situation. Such as…
- Is it legal?
- Would you mind if this was released to the press?
22
Q
What are the three levels of disciplinary action at RICS?
A
- Action by Head of Regulation
- Disciplinary Panel
- Appeal Panel
23
Q
The Head of regulation can do one of 4 things after the initial investigation, what are these?
A
- Fixed penalty notice
- Regulatory Compliance Order
- Refer matter to Regulatory tribunal for consideration
- Refer matter directly to Disciplinary Panel
24
Q
What are fixed penalties?
A
Fine and / or caution for low level breaches of rules only for the supply of info to RICS.
25
What are Regulatory Compliance Orders?
Low level breaches of rules which can easily be corrected.
Written document stating terms member or firm must take or desist from taking certain actions in a specified time period and agreement to pay a fine.
26
What can you tell me about fee negotiations?
Firms should avoid price fixing, fee cutting or collusion with competitors.
Market based and agreed on ad hoc basis.
27
What is a conflict of interest?
Where person of trust such as a surveyor, there impartiality is compromised due to a competing personal or professional interest
28
What are the 3 types of conflicts of interest?
Party conflict - work on same or related instruction for two parties.
Own interest conflict - relating to personal interest.
Confidential information conflict - relating to work between parties that is confidential.
29
Can you manage a conflict?
Yes some conflicts can be managed If you have received informed consent and it is in your clients best interest.
30
How would you manage a conflict?
Ensure Information and ethical
Barriers are in place such as:
- Surveyors physically separated by different floors of offices, different locations of offices
- Different support staff
- Securely store all information regarding the instruction.
- keep a clear audit trail of conflict check process and any written or oral info.
- firms compliance officer overseas all actions
31
Can all conflicts be managed?
No
- Cannot value something you are selling
- Cannot act on both sides of a transaction I.e. for a buyer and a seller
32
What is an example of a personal / own interest conflict?
Acting on behalf of a parent or close business associate for a disposal
33
What is incremental advice?
This is where an agent acting for seller for example is approached by buyer or their lender to provide a valuation.
Must only provide if consent is given and an information barrier is out in place before providing any incremental advice to prospective buyer.
34
What do you know about confidentiality in your day to day work?
RICS Bye Laws Client confidentiality must be maintained for all client affairs unless overriding rights from police or HMRC.
This relates to any historic information or information provided prior to instruction.
35
How long should old client files be held for?
Minimum of 6 years before disposal and destroyed securely.
36
What should you do if you find out a confidential piece of information regarding a party who is not your client e.g receiving an email addressed to another party.
- This cannot be used for own purposes
- Client and sender should be advised of error
- Record in a note to firms compliance officer
37
What is RICS complaints handling procedure?
- Must be made in writing from anyone who the firm owes a duty of care.
- Acknowledged within 7 days and investigated within 28 days
- Stage two is to refer to independent redress scheme the firm has chosen to use such as Centre of Dispute Resolution (CEDR) or RICS Dispute Resolution Service.
38
What are the CPD requirements for a RICS member
20 hours annually, of which 10 must be formal.
39
What is the difference between informal and formal CPD?
I would use the CPD excision tree to check but:
Formal - structured learning with learning objectives and outcomes such as online training / webinar.
Informal - such as private study or reading.
40
What is professional indemnity insurance?
Protects clients, surveyors and third parties from claims of negligence.
Mandatory for surveyors working in practice.
41
What are the current minimum requirements for Professional Indemnity Insurance?
Based on turnover and are as follows:
£100k or less = £250k
£100k to £200k = £500k
£200k plus = £1m
42
What is negligence?
Duty of care exists to clients and third parties, when breached and there is a loss, a claim for damages arises.
43
How can you avoid negligence ?
- Clear terms of engagement
- Ensure competence
- Limitation of Liability
- Adhere to RICS standards and Guidance.
- Detailed file notes and take photographs
44
What are the 6 areas of good practice set out in RICS Professional Statement ‘Client Money Handling, 2019’.
1. Holding client money
2. Providing information to clients
3. Receipts of client money
4. Payments from client accounts
5. Accounting records and controls
6. Compliance
45
What are the procedures for handling client money?
- Must be kept separately and clearly identifiable
- Word ‘client’ to be on account and cheque book
- Must never be overdrawn
- Client to have their money on demand
- Money can only be withdrawn if properly required
- Payment of interest must be agreed with client.
46
What are the RICS requirements for starting a new practice?
- Inform RICS by completing firm detail form.
- Appoint responsible principle.
- Arrange PI cover
- Set up complaints handling procedure approved by RICS
- Set up a complaints handling log
- Appoint complaints handling officer
- Use logo kit from RICS
- Ensure CPD logged online
- Ensure completion of annual return every year
47
What are the Statutory Requirements when setting up a new practice ?
- Requirement to disclose business name
- Appoint money laundering reporting officer
- Inform HMRC for VAT and tax registration
- Ensure compliance with employment law
- Ensure insurance compliance for employer and public liability
- Equality act compliance
- Bribery Act compliance
- Estate agency compliance
48
What are the requirements for closing a practice?
- Inform RICS of your retirement / closure
- Ensure clients informed at the earliest opportunity
- Ensure handover arrangements made to new firm.
- Return any money to client accounts
- Inform insurers and procure PI run off cover for a min of 6 years
- Retain copy of clients files for min of 6 years
49
What are the RICS requirements when setting up as a sole trader?
Largely similar to requirements for setting up a firm, however arrangements will need to be made for surveyor within another firm to handle complaints and also holiday cover and succession or future trading of the business when a sole trader.
Will also need to:
- Inform RICS
- Set up PI cover
- Set up procedures for handling clients money
- Complete CPD requirements
- Complete annual return
