RICS Regulated Firms Flashcards
(15 cards)
How do you start a new RICS practice?
1) Inform RICS (Firm Details Form)
2) Appoint a Responsible Principal (RICS communication)
3) Register with RICS
4) Arrange PII and send details to RICS
5) Client’s Money Handling procedures
6) Register for RICS Valuer Registration Scheme (if undertaking Red Book Global valuation work)
7) Obtain RICS approval of Complaints Handling Procedure
8) Establish a Complaints Log
9) Appoint a Complaints Handling Officer (or surveyer in another practice if sole practitioner)
10) Use RICS logo kit for all practice material (‘regulated by RICS’)
11) Succession plan if sole practitioner
12) Ensure CPD is logged online and establish a staff training plan
13) Ensure completion of an online RICS Annual Return
Source: APC Success
What statutory requirements need to be complied with when starting an RICS firm?
1) Disclose business name (Companies Act 2006)
2) Disability discrimination compliance (Equality Act 2010)
3) Financial services compliance (Financial Services Act 2012)
4) Bribery Act 2010 compliance
5) Appoint a Money Laundering Reporting Officer (Money Laundering Regulation 2017)
6) Health & Safety Act 1974 compliance
7) Asbestos Register (Control of Asbestos Regulations 2012)
8) Fire safety compliance (Regulatory Reform (Fire Safety) Order 2005)
9) Register for data protection (GDPR and Data Protection Act 2018)
10) Estate agency compliance (Estate Agents Act 1979)
11) Inform HMRC for VAT and Tax registration – VAT threshold currently £90k turnover
12) Compliance with Employment Law (e.g. living wage, working hours, pensions, gender pay gap reporting)
13) Employer and Public Liability Insurance compliance
Source: APC Success
Would you advertise your new company in the press?
Yes, ensuring that the publications was in line with the RICS Rules of Conduct.
How do you close down an RICS prictice?
1) Inform RICS and deregister
2) Inform staff and clients (making arrangements for handover to a new firm)
3) Return client money to their accounts
4) Inform insurance provider and ensure PII cover for 6 years
5) Retain clients’ files and records for 6 years
6) If insolvent seek advice
Source: APC Success
What is included in the RICS Registration / Annual Return?
1) Type of business and staffing details
2) Name of the Responsible Principal
3) Statutory regulated activities
4) Nature of clients
5) Complaints Handling Procedure details and records
6) PII details
7) Whether the firm holds clients’ money
Source: APC Success
Why does RICS regulate the surveying profession?
1) Protect the public
2) Uphold public confidence in the profession
3) Uphold professional standards
Source: APC Success
What does the annual regulatory review fee relate to?
All regulated firms who hold clients’ money pay a regulatory review fee on an annual basis. The income generated from these fees covers the operational costs of the client money regulatory review visit programme. The fee is set based on the number of directors/principals in each firm, which includes both RICS members and non-member individuals.
When is a firm required to register for regulation by RICS?
According to the RICS Rules for the registration of firms 2022 firms must register when:
A) The firm provides surveying services to the public
B) Is operating in the UK
C) At least 50% firms principals (e.g. sole practitioner / directors / partner / board member) are RICS Members
When is a firm eligible to register for regulation by RICS?
According to the RICS Rules for the registration of firms 2022 firms are eligible to register when:
A) The firm provides surveying services to the public
B) At least 25% of the firms principals (e.g. sole practitioner / directors / partner / board member) are RICS members
What is the role of the Responsible Principal?
● All RICS registered firms have to appoint a Responsible Principal
● They ensure reasonable steps are taken to ensure compliance with Regulatory and RICS requirements, including reporting to RICS
What insurance do you need to start your own firm?
● PII
● Employers liability
● Public Liability
● Building insurance
Summarise the RICS Regulation: Rules for the use of RICS Logo and Designation by firms 2022?
● Logo can only be used by a member or registered firm (cannot be altered)
● ‘RICS Registered Firm’ designation (‘Regulated by RICS’) may only used by an RICS Registered Firm and is mandatory on all business literature (letterhead, website, TOE, information on complaint handling)
● Must include mandatory text in all TOEs
● ‘Chartered surveyors’ designation for firms - sole practitioner can use if chartered.
● ‘Chartered surveyors’ designation for firms - Partnership and company can use if 50% or more of directors are chartered and certain other requirements.
What RICS Regulation relates to the use of the RICS logo?
RICS Regulation: Rules for the use of the RICS Logo and Designation by firms 2022
What is a locum and who might need one?
Another professional who is appointed to ‘stand in’ for the surveyor if they are unable to work, e.g. in the event of an accident/illness, unforeseen circumstances, prolonged absence (e.g. holiday or a sabbatical) or death.
Normally a locum is another chartered surveyor.
A sole practitioner should appoint a locum within their succession plan.
What is a locum and who might need one?
Another professional who is appointed to ‘stand in’ for the surveyor if they are unable to work, e.g. in the event of an accident/illness, unforeseen circumstances, prolonged absence (e.g. holiday or a sabbatical) or death.
Normally a locum is another chartered surveyor.
A sole practitioner should appoint a locum within their succession plan.
