Client Care - Setting Up Own Firm

Question 1

What do you need to do when setting up your own firm?

Answer 1

• Obtain starting pack from the RICS
• Inform the RICS
• Set up a complaint handling procedure
• Ensure the appropriate PII cover is in place
• Ensure the firm follows all the rules of conduct

Question 2

How do you deal with client money?

Answer 2

• Preserve the security of the clients money
• Set clear segregration of duties for employees
• A principle must oversee accounting functions
• Principles cant override controls
• Competent and knowledge staff to process client monies
• Accounting systems must be secure
• Client monies must be kept separate and clearly identified – clear bank names
• Clients must always have access to the account
• The account must not be overdrawn
• Must maintain client ledgers and provide a running balance

Question 3

Can you tell me what legislation you would need to follow when setting you your own firm?

Answer 3

• Equality act
• money laundering act
• Anti bribery act 2010
• H&S at work act
• Control of asbestos
• Data Protection Act

Question 4

What insurance is required for setting up your own business?

Answer 4

• Professional indemnity insurance
• Public liability insurance
• Buildings insurance
• Contents insurance

Question 5

What do you need to do when closing down a firm?

Answer 5

• Inform your clients
• Inform RICS
• PII cover – run off cover 6 years
• Retain client files min 6 years

Question 6

Can you cut your fee in face of competition from another firm?

Answer 6

• RICS guidance states that firms should avoid price fixing and aggressive fee cutting against competitors.
• You may however enter into further fee negotiations with a perspective client as long as the job is still profitable (change scope / level of work)

Question 7

When would it be appropriate to decline an instruction?

Answer 7

• You are not competent to undertake the work.
• The proposed client will not sign the terms of engagement or complete money laundering checks.
• There is a conflict of interest or personal interest.
• The advice is for a friend or pro bono and your PII with not cover the work.