Business Planning Flashcards
What is the purpose of regulation?
To provide a ‘gold standard’ and consistent standard of quality control for clients.
Which firms must register for regulation?
Firms providing surveying services to the public.
They can be corporate bodies, partnerships, LLPs or sole traders.
What is required for registration with the RICS?
The firm must advise the RICS of;
- The type of business and staffing details.
- The name of the ‘Responsible Principal’
- Any statutory regulated activities the firm carries out.
- Nature of clients
- Complaints handling procedure
- Professional Indemnity Insurance details.
- Whether the firm holds client money.
How does a firm register with the RICS?
Completion of a registration form which is available on the RICS website.
What are the standard procedures for a complaints handling procedure in house?
Details of the CHP should be issued to a complainant, advising them how to register a formal complaint from a valid complainant.
A complaint should be dealt with by a nominated person, whose contact details are disclosed to the complainant.
Complaints must be made in writing.
A complaint should be acknowledged within 7 days and investigated within 28 days.
If a complainant is unhappy with the proposed resolution, where can they escalate the complaint to?
A complainant may escalate a complaint to alternative dispute resolution services such as the Centre for Dispute Resolution, The Property Redress Scheme or the RICS Dispute Resolution Service.
What is a client money account?
A client money account is any account that holds money/funds on behalf of the client.
What is required for a client money account?
It must be seperate and clearly identifiable, with the word ‘client’ included on the bank account name.
What must all firms do when handling client money?
All firms need to display their procedures document on their website.
What do the RICS require when starting a new firm?
Inform the RICS of a new practice by completing a Firm Details Form.
Appoint a Responsible Principle.
Register with the RICS for regulation of the firm.
Arrange PI insurance and provide details to the RICS
Set up Client Money Handling procedure if required.
Obtain RICS approval of the complaints handling procedure, appoint a complaints handling officer and set up a complaints log.
If a sole trader, put in succession planning.
What does the RICS require when closing a firm?
Inform the RICS of the closure.
Inform all clients of the closure and assist with handover to a new firm.
Return any client money.
Inform insurers and procure PI run-off cover for a minimum of 6 years from the expiry of the polucy in force at the time of cessation.
Retain records for 6 years.
What is money laundering?
Money laundering is the proceeds of criminal activity being disguised or converted to legitimate assets.
