15 - Starting/Closing a New Practice Flashcards
Describe some RICS compliance for new practices
Responsible principal
Register for regulation
PII
CHP
Complaints log
Logo kit
- The Appoint a Responsible principal for all RICS communication
- Register with RICS for regulation of the firm
- Arrange PII
- Set up client money procedures
- Register for RICS Valuer Registration Scheme (VRS) if undertaking Red Book valuations
- Obtain approval from RICS regarding CHP
- Set up complaints log
- Use logo kit from RICS
- Ensure completion of an online RICS Annual Return each year.
Describe some statutory compliance for new practices
- Inform HMRC for VAT and Tax registration
- Appoint money laundering reporting officer
- Comply with Equality Act
- Comply with Bribery Act
- Comply with Health and Safety
- Comply with employment law
Describe RICS compliance for closing a practice
- Inform the RICS of retirement/closure
- Client informed asap
- Return client monies
6 years:
*Inform PII
*Client files
When starting a new practice what would you do in regard to VAT?
Inform HMRC for VAT and Tax registration; the current threshold is £85,000 p.a. in turnover.
What are the Gender Pay Gap Reporting Regulations?
Firms with over 250 employees must:
Complete annual report stating difference in pay between male and female employees to:
ACAS
The Government Equalities Office
Savills average hourly gender pay gap is 39%. Savills average bonus pay gap of 78.5% (which is really shit for our industry). However, 48% of our RICS qualified Surveyors are women. Compared to 14% across the whole of the RICS.
What are the conditions for a firm unable to meet the new registration requirement?
They are still able to apply to be registered at the discretion of the RICS Head of Regulation, providing that they have a plan to ensure compliance in the near future and are associated/supported by another registered firm.
What RICS document should be used for regulated firms
RICS ‘Rules for the Regulation of Firms’ 2022 (Regulation)
What does RICS ‘Rules for the Regulation of Firms’ 2022 state around which firms can/must be chartered?
If 50% of Principals of a UK firm which provides surveying services are RICS members → has to be regulated.
If 25% → it can apply to be regulated.
Principals are sole practitioners, directors, partners, board members who can act autonomously.
Each firm must nominate a ‘responsible principal’ to ensure compliance with regulatory and RICS requirements.
What six pieces of information does the RICS require from a firm for registration as an annual return?
The RICS requires the following details as an annual return:
1. Type of Business and Staffing Details – Firm Detail Form
2. Statutory Regulated Activities – Such as financial services.
3. Nature of Clients
4. Complaints Handling Procedure Details and records
5. Professional Indemnity Insurance
6. Clients’ Money.
What change was made regarding the use of the RICS logo?
Before: firm outside of the UK, one member could use logo
After: only regulated firms can use the logo.
