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Mandatories > Client care > Flashcards

Client care Flashcards

1
Q

What is client money?

A
  • Money of any currency of any form
  • Received on behalf of another company that is not yet due or payable
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2
Q

What is a complaint?

A
  • An expression of dissatisfaction.
  • Can be formal written or verbal
  • RICS requires complaints to be handled in line with their complaints handling procedure
  • Required to notify PII insurers
  • Can lose clients, reputational damage & PII claims against firms
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3
Q

Prior to working with a new client, what pre-appointment checks would you undertake?

A
  • Ensure I am sufficiently knowledgeable, skilled & competent to carry out the work required
  • Check for conflicts in line with RICS professional guidance
  • Anti-money laundering checks in line with Anti-Money Laundering Directive & RICS PS Countering Bribery, Corruption, Money Laundering & Terrorist Finance
  • Ensure sufficient PII
  • Formalise engagement in writing issuing terms of engagement
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4
Q

What procedures would you put in place to ensure good client care in a new practice?

A
  • Processes for formalising terms of engagement & clear communication lines including confirming timescales, resource and the information required from the client
  • Procedures for obtaining regular client feedback e.g. monthly client reviews
  • Develop strategies for participating in business development
  • Procedures to keep client info confidential and using non-disclosure agreements
  • Reporting to clients using agreed consistently formatted documents
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5
Q

Why is client care so important?

A
  • Likely to retain existing clients and new business leads through positive testimonials
  • Failure = dissatisfaction, complaints, and PII claims for professional negligence
  • Complaints & claims can be avoided with diligence, manageable work loads & obtaining regular feedback
  • Helps create a better environment to work if client’s are happy
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6
Q

On receipt of a formal complaint from a client in writing, what would you do?

A
  • Arrange a call with client to notify we have received the complaint and working to rectify the issue they are experiencing
  • Issue client a copy of complaints handling procedure
  • Report complaint to senior person in the firm or designated complaints handler
  • Notify my firms PII insurers
  • Arrange a meeting with the client to take on board their feedback & introduce appropriate procedures to rectify any areas of concern
    -If unable to resolve, refer to RICS independent redress mechanism
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7
Q

What is the difference between client and customer?

A
  • Customer - individual who is purchasing goods / services. Typically one time transaction, less long term relationship
  • Client - typically looks for professional service from a company, both sides work on long time goals & relationships, stronger bonds
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8
Q

How would you approach a new client?

A
  • Friendly, engaging and enthusiastic
  • Inquisitive about key challenges
  • Well presented, presentable
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9
Q

What is meant by the term soft landings?

A
  • Strategy to make an easy transition from the construction phase to the occupation stage
  • Help to realise optimal operation performance and ensure end user can operate effectively in the asset that is delivered
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10
Q

Provide an overview of your quality management procedures

A
  • Peer review process
  • Senior sign off
  • Standardised format of documentation
  • Authorisation / signature process prior to release of document
  • Accessible file storage systems e.g. emails stored for absences
  • Procedures for handover from staff leavers
  • Internal & external audits
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11
Q

What is your firm’s procedure for obtaining client feedback?

A
  • Client performance reviews at key milestones within the project
  • Use of KPI’s
  • Regular informal communication with the client
  • Lessons learned workshops at completion of the scheme
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12
Q

What is a KPI?

A
  • Measurable value demonstrating how effectively a company is achieving key business objectives
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13
Q

What would you expect to find within an appointment document?

A
  • Consultant’s obligations
  • Client’s obligations
  • Limitation of liability
  • Collateral warranties and third party rights
  • Payment
  • Professional indemnity insurance
  • Copyright and confidentiality
  • Assignment
  • Termination and suspension
  • Dispute resolution
  • Governing law
  • Scope of services
  • Exclusions and assumptions (i.e. programme)
  • Client brief
  • Details of complaints handling procedure
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14
Q

If an estimate you had prepared was proven to be incorrect, could a client claim against you for losses?

A

Not necessarily, as the client would need to prove that the QS has warranted the accuracy of the estimate or that it was incorrect due to a lack of reasonable skill and care. For example, market conditions might have led to the estimate being incorrect which, to some extent, is outside of the QS’ control.

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15
Q

What is the RICS guidance on CHP?

A
  • Publish companies CHP and signpost clients
  • Record in a complaints log
  • Ensure employees know where complaints are logged
  • Ensure PII insurers are updated if required
  • Take complaints seriously, don’t assume the outcome until it is investigated
  • Maintain professionalism
  • Seek support e.g Lionheart
  • Handle the complaint within timescales of CHP
  • ADR for when complaints can’t be resolved
  • If complaint uncovers a serious breach report to RICS regulation
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16
Q

What is the purpose of ADR?

A
  • Helps protect the public
  • Enables firms to issue a referral letter to an independent body rather than continuing correspondence indefinitely
  • Usually quicker than litigation, less formal
  • Cheaper as designed to be accessible without legal representation
  • Risk management
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17
Q

What would you do when a complaint is resolved?

A
  • Reflect on why the complain arose
  • Identify improvements to process, communication or knowledge
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18
Q

What should be included in a complaints log?

A
  • What went wrong?
  • Actions taken
  • Any improvements to processes e.g. clearer terms, CPD to address gaps in knowledge
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19
Q

What guidance documentations has the RICS published on complaints handling?

A

Complaints Handling Guidance Note - Updated January 2022

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20
Q

What are the top 10 negotiation skills to succeed as set out by Harvard?

A
  • Know your BATNA
  • Negotiate the process - who is to be present
  • Build rapport
  • Listen actively
  • Ask open questions
  • Search for trade offs
  • Be aware of anchoring bias
  • Present multiple equivalent offers simultaneously
  • Present a contingent contract i.e. a bet about how future events will play out such as finishing a home in time, failure leading to penalty
  • Plan for implementation stage e.g. key milestones to meet and discuss
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21
Q

What is communication?

A

Imparting of information by speaking or writing

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22
Q

What are your views on email communication?

A

Need to take great care not to released sensitive information to incorrect parties
Can have the ability to create contract and form written instructions

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23
Q

What is negotiation?

A

”- Discussion should to reach a compromise or agreement
- Informal or facilitated negotiation to agree to settle a dispute
- Concessions are non negotiable items of each party are discussed “

24
Q

What would you do following a negotiation meeting where a verbal agreement was made?

A

Look to formalise the verbal agreement as soon as possible
Done through written correspondence setting out what was agreed at the meeting and requesting a party confirmation agreement by written reply

25
Q

What information is available referencing the handling of client’s money?

A

RICS PS Client Money Handling - October 2019, revised October 2022 to reflect RoC
Fraud Response Plan RICS guidelines
Also information on RICS website regarding Client Money in Locum Agreements, Power of Attorney & Business Continuity Advice

26
Q

How is the PS on Client Money Handling built up?

A
  • RICS Client Money Protection Scheme rules
  • Glossary
  • Introduction
  • Mandatory Requirements
  • Guidance
  • Appendix A - examples of client and office money
27
Q

What is the objective of the PS on Client Money Handling?

A

To ensure:
- Client money is kept safe
- Client money accounts are used for appropriate purposes only
- RICS firms have appropriate controls and procedures to safeguard client’s money

28
Q

What scheme’s apply from the RICS regarding Client’s Money?

A

RICS Client Money protection Scheme - most relevant for me would be the sevice for Surveying Services

There is a scheme for Property Agents

29
Q

What are the mandatory requirements for RICS members & firms when it comes to Clients Money?

A
  • Must comply with RoC
  • All principals in firms must ensure they and their employees comply with professional standard
  • If client money is held by a subsidiary company or third party transaction service on behalf of RICS regulated firm, principals remain responsible for holding client money
  • Must ensure all information and records relating to client money are made available to RICS on request
30
Q

What must firms do in relation to holding client’s money?

A

”- Hold in a client money account where RICS firm has exclusive control in a bank / building-society authorised by banking regulatory authority
- Ensure money account does not contain anything other than client money paid in, or any sums to replace incorrectly withdrawn money including the accrued interest on those amounts
- Not hold office money in a client account
- Accounts include the word ‘client’ and name of firm or identifier where a discrete account
- Ensure money is immediately available, at sacrifice of interest, unless other instruction’s given by client in writing
- Where client has given instructions to hold monies in account with penalties for instant access, penalties are only paid out of client account if client has specific informed consent & not resulting in overdrawn. Otherwise, instructions to bank for penalties to be applied to office account
- Confirmation from bank needed that monies from client account will not be merged or used in relation to any other account of the firm
- Where client requires access to account, must be set up by client

31
Q

What information must RICS firms supply to clients on handling client money?

A

Must confirm in writing
- confirmation client money will be held in client money account, including bank
- Account details
- Whether account is in name of regulated firm, wholly owned subsidiary or third-party transaction provider
- Advice that client’s who pay fees in advance of surveying services that the money i snot covered by Client Money Protection Scheme
- How unidentified funds are dealt with
- Copy of firm’s written procedures for handling client’s money

32
Q

On receipt of client money, what must firms do?

A
  • ensure client money is paid into client account promptly
  • Where mixed monies is received, pay to office / client money account promptly
  • Where client instructions are to hold only part of a payment, all payment is transferred to client account, then transferring out relevant part promptly
  • Account for interest accrued by client account to client unless agreed in writing
  • Take prompt action to identify the owner of any unidentified client money received. Where cannot be traced, transfer to a charity where owner is not identified after 3 years from receipt
  • Obtain receipt and an indemnity from the charity that all monies would be reimbursed by charity if beneficiary is subsequently identified
33
Q

What is the process for payments from a client account?

A
  • Each client’s money only to be used for that client’s matters
  • Ensure money returned as soon as there is no longer any reason to retain those funds or further payments / refunds paid to client immediately
  • Payments from cleitn account made to or on behalf of client on their instruction
  • Where fees due, send invoice / written notification of costs incurred to client before withdrawing
  • Check sufficient funds are held before makign any payments on their behalf
  • Written permission for any direct debits & standing orders
  • Written agreement from client before bank costs are recharged to client bank accounts
34
Q

What must firms do if they hold client money?

A
  • Records of all dealings including demonstrating monies held in client money account
  • Systems & procedures for payments in and out as referenced in instructions received by client
  • Undertake regular client account reconciliation’s that are reviewed by principal or senior staff
  • Publish written procedures for handling client’s money on firm’s website (if any) and provide a copy to RICS / persons who reasonably require
  • Ensure overdrawn balances are prevented by firm’s systems & controls and if these do occur, investigate & rectify immediately
  • Control and protect accounting systems & client data with computer systems for access, firewalls, disaster recover
35
Q

In relation to compliance, what must RICS firms do when handling client’s money?

A
  • Comply with anti-money laundering legislation, rules & regulations for receipts of client money
  • Comply with RICS Countering Bribery and corruption, money laundering and terrorist financing PS
  • Obtain certification reflective of legislation
  • Ensure any breach of requirements is investigated and remedied
  • Record any breach of mandatory requirements of professional standard in writing including consideration to inform RICS & client
  • Inform RICS client & insurers immediately if money is misappropriated by any person
36
Q

In relation to compliance, what must RICS members do when handling client’s money?

A
  • Comply with anti-money laundering legislation, rules & regulations for receipts of client money
  • Comply with RICS Countering Bribery and corruption, money laundering and terrorist financing PS
  • Follow firm procedures
  • Not override any controls in place to protect client money
  • Make appropriate disclosures to senior members of firm or regulator immediately if they become aware of any risk or misappropriation of client money & keep a written record of that disclosure
37
Q

What is office money?

A

Refers to money belonging wholly to the RICS regulated firm / principal

38
Q

What should be included in firm’s written procedures for handling client’s money?

A
  • Reference to RICS PS
  • How & where client money is held
  • Access to funds being restricted to principals or senior employees
  • Timescales for payment of cash & cheques to client account
  • Controls for authorisation of payments from a client account
  • How interest and bank charges are handled
  • Information about reconciliation of accounts & checking of reconciling items
  • What information will be provided to clients about monies held on their account & frequency of any reports
39
Q

What should be included in reconciliation of client accounts?

A
  • Should be done once per calendar month, no later than 6 weeks after the previous reconciliation
  • Where only 1 /2 transactions a month, quarterly is sufficient
  • Should show cashbook, lender & bank statement balances
    Include list of dated unpresented cheques, dated outstanding deposits, details of any other reconciling items & client ledger balances & total of balances
  • Required to be reviewed & signed by principal
  • Cheques 6 months + should be cancelled, written back and reissued
  • Reconciliations should not include items that are 3 months + (except cheques)
40
Q

Can you take commission from client payments to contractors?

A

Where held in client money account, if stated within agreement. Must be clearly identifiable on statements to clients

41
Q

What happens if the firm transfers money to the client account?

A

May be done where funds are needed for a payment on behalf of the client.
Sum becomes client money
Can only be repaid to the firm when funds are received to enable repayment

42
Q

If payment from a client account is misdirected, is the member of firm in breach of the professional standard?

A

Not if:
- there are appropriate systems in place to ensure compliance
- appropriate instructions were given to the client / paying third party
- Client’s mistake is remedied promptly on discovery and steps are taken to prevent future errors

43
Q

What happens to unidentified funds in client accounts?

A
  • Firms keep a detailed listing including date of receipt, how they were received, reference on bank statement regarding payer and amount
  • Check accounting records to identify any outstanding incomes that would explain
  • Writing to last known address of client
  • Trying to repay the funds through banking system where possible
  • Keep a record of investigation
  • If identification of payee is not possible, after 3 years from receipt should pay money to charity. Firm remains responsible - require indemnity from charity
44
Q

What happens where money is paid by error into client’s account?

A
  • Should be withdrawn / transferred promptly
  • Management agreement with client should state what should happen. If not clear, take instruction on whether money to be returned or retained for further work
45
Q

How is client’s money drawn down on from a client account?

A
  • Provide an invoice for services rendered (services rendered only)
  • Charge VAT if VAT registered (turnover £85k+)
  • Terms of agreement set out with the client - likely to require dual signatory
  • Ensure sufficient funds in client account - cannot be overdrawn
    -Inform client if commitments against client account are greater than the amount available
  • If other commitments are due from the client account and their is insufficient funds, it is your responsibility to cover
46
Q

How should client bank accounts be controlled?

A
  • Exclusive control of firm
  • Where client requests dual control, must be set up by client
  • Copy of bank mandate held for each client. Should be updated when changes to signatories or every 3 years
  • Letter from bank to confirm names of client account signatories, any limits or joint signing authorities, individuals authorised for online access
  • Where RICS firm holds more than 3 client accounts, central list of all client accounts should be maintained
  • Withdrawal only made after specific authority has been signed
  • Only principals of firms should be able to authorise new signatories
  • Where sole signatory, should be principal and remote from day to day operation of client’s account. Otherwise should be dual signatory
  • Signatories should be proven to understand requirements of the PS, firms procedures and covered by PII
  • Electronic or phone withdrawals should be protected by safeguards such as passwords
47
Q

What controls should be in place for receiving client money?

A
  • Procedures to identify the difference between client money and office money
  • Cash & Cheques received should be logged and procedures to check all funds are banked
  • Pre-numbered duplicate receipt given to client and other retained by firm
  • Cash & cheques banked promptly
  • Direct Debits should comply with Direct Debit Guarantee scheme
48
Q

How does the RoC relate to handling clients money?

A
  • Rule 1 - Act with honesty and integrity and comply with professional obligations (e.g. holiday cover for signatories)
  • Rule 2 - Maintain professional competence and ensure services are carried out by competent individuals
  • Rule 5 - Confidence in profession (known procedures for whistleblowing )
49
Q

How should firms comply with anti-money laundering standards when handling client’s money?

A
  • Ensure all money held is linked to surveying activity being undertaken
  • Duty to remedy breaches lies with person causing breach and the regulated firm
  • Principals have a professional obligation to replace missing client money from own resoruces
  • Principals must report any client money misappropriateion to RICS immediately
  • Firm should report and client money misappropriation to police and record any reports made. If not reported, must record reasons why
50
Q

What is the Client Money Protection Scheme?

A
  • Allows firms to offer client money protection
  • Compensates Clients of RICS registered firms for losses resulting from a firm failing to account for Client Money to the person entitled to it
  • Only applies to Registered Firms activities in UK
  • Protects public for reimbursement where all other avenues have been exhausted
  • Claims and queries to the Scheme Administrator
  • Every RICS registered firm that holds client money must become a Member of the Scheme
51
Q

What is required for membership to Client Money Protection Scheme?

A
  • Required to be a member as part of provisions for RICS Registered Firms
  • Membership ceases if firms ceases to be RICS registered. Cover ceases with effect from date that membership is cancelled
  • Levies payable annually, amount due is published on Scheme’s Website and members notified before next financial year
  • Scheme Administrator reviews membership on an annual basis
52
Q

What must Client Money Protection Scheme members do? Talk through the process of handling a client’s money

A
  • Maintain 1+ Client Money Accounts where all Client Money is aid
  • Client Money Account most be designated as such and be easy to distinguish from other accounts of the member
  • Clients of member must be notified of the details of the account
  • Confirm in writing to the bank that bank acknowledges Client Money must bot be combined with any other account maintained by the member
  • Keep records of the accounts showing all dealings with Client Money
  • Must comply with procedures for handling Client Money
  • Publish procedures on website
  • Provide a copy of procedures to anyone who may reasonably require
  • Keep records of accounts showing all dealings
  • Repay any client money including interest
  • Hold PII
53
Q

What is the liability for loss of client money under the Client Money Protection Scheme?

A
  • Available for when all over avenues have been unsuccessful
  • Scheme covers liability of members
  • Clients shall not bear excess amounts that may be applicable
  • Annual reviews undertaken by Scheme Administrator to determine relevant limits and risks
54
Q

What are the limits to the compensation covered by the Client Money Protection Scheme?

A
  • Covers direct losses only (no consequential)
  • Offer protection when all other avenues are exhausted
  • Scheme Adnimistrator may put limits per claim or cap on the liability on a financial year or exclude certain risks
  • Aggregate caps that apply shall be determined with the intention it will be more than tha maximum probable loss expected to arise
  • Reviewed annually with members notified to ensure opportunity to remove membership if required
55
Q

What is the process for making claims under the Client Money Protection Scheme?

A

Member must:
- Submit notice in writing of any potential claim as soon as practical (to Head of Registration & Complaince, Colmore Row)/
- Acknowledgement of receipt of any claim to be given within 7 working days
- Agree to co-operate fully with investigation
- Agree to onsite vsits to the address of records and accounts showing dealings are held
- Produce all records relating to matters relevant to the Scheme
- Respond to all communications promptly
- Make every reasonable effort to minimise any Client Money loss
- Where fraud or dishonesty is suspected then details must also be reported to police

56
Q

What would be excluded under the Client Money Protection Scheme?

A
  • Loss of investment income
  • Penalties, fines
  • Loss arising outside of UK
  • Loss where the client is jointly held by the Client and the client has contributed to the loss
57
Q

What are the compensation limits under the Client Money Protection Scheme?

A

£50,000 per claim
£10.3m for whole financial year

Mandatories (13 decks)

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