Requirements for registration

Question 1

What are the benefits of regulation for firms?

Answer 1

Confidence – for client as regulated firms are monitored by RICS regulation

Professionalism – firms have to provide, clear, impartial and expert advice

Security – firms have to have a recognised complaints procedure, access to free independent redress and PII cover.

Question 2

What is the purpose in regulation by the RICS?

Answer 2

Regulation provides gold standard for quality control for clients.

Question 3

What are the rules for registration of firms?

Answer 3

If 50% of the principals of a UK firm are RICS members then it has to be regulated, and at least 25% then can apply to be regulated.

Each firm must nominate a ‘responsible principal’ who is obliged to ensure all reasonable steps are taken and systems are in place to ensure compliance with regulatory and RICS requirements

Only RICS members and regulated firms can use the logo

Question 4

What must be included within an annual return?

Answer 4

1. Type of business and staffing details
2. Statutory regulated activities – such as for financial services
3. Nature of clients
4. Complaints handling procedure details and records
5. Professional indemnity insurance details
6. Whether the firm holds clients’ money

Question 5

What is tort?

Answer 5

The law of tort is designed to regulate the conduct of individuals to each other and allows for compensation or damages if a party suffers a loss through another’s action. It deals with civil wrongs.

Question 6

What is a bye-law?

Answer 6

Rule made by a company or society to control the actions of its member’s liability. They are a form of delegated legislation.