Client Care

Question 0

What are the levels of turnover for PII?

Answer 0

RICS PII Policy Sheet
£100,000 or less = £250,000
£100,000 to £200,000 = £500,000
£200,000 and above = £1,000,000

Question 1

What is the aim of PII?

Answer 1

Protect staff, firm and client from financial loss arising from negligence.
You must make sure you have 6 years of run-off cover if you move to a different company.
Required by the Rules of Conduct

Question 2

What are the minimum levels of uninsured excess?

Answer 2

Up to £500,000 indemnity =
Greater of 2.5% of the sum insured, or £10,000

Over £500,000 indemnity =
2.5% of the sum insured

Question 3

Can a surveyor be personally liable if employed by a company and covered under their PII?

Answer 3

Merrett v Babb 2001 = a surveyor was individually liable for a negligent valuation report when he did not have the protection of PII due to the firm’s insolvency. The purchaser was entitled to recover damages from the defendant personally.
Should have run off PII insurance for 6 years after practising.

Question 4

Provide some examples of monies held on behalf of clients?

Answer 4

Service charges, insurance, sale proceeds, rent deposits, shop fit deposits

Question 5

What is money laundering?

Answer 5

Where the proceeds of criminal activities are disguised, then realised as legitimate funds/assets
Money Laundering Regulations 2007– more risk-based approach. Simplified due diligence for low-risk clients and enhanced checks for high-risk e.g. terrorism finance
Confirm – identity of customers
Appoint – Money Laundering Officer
Train – staff
Control – business by having anti-money laundering procedures
Hold – records for 5 years
Proceeds of Crime Act 2002 – criminal offence if fail to report suspicion

Question 6

What is the Bribery Act 2010?

Answer 6

Makes criminal offence
Offering a bribe
Receiving a bribe
Bribery of a foreign public official
Failure of a commercial organisation to prevent bribery on its behalf

Question 7

When should you decline an instruction?

Answer 7

If you are not competent – knowledge and experience
Personal interest in transaction
Irresolvable conflict of interest
Refer them to the RICS ‘Seek a Surveyor’ scheme.

Question 8

What does Acting as an Expert Witness 2008 say?

Answer 8

Has a duty of care to the court or other dispute resolution panel rather than their client.
Duty to court to share knowledge.
Fee on time-basis, not incentivised.
Part 35 Civil Procedure Rules – experts in court