Client Care - Specific Questions Flashcards
Tell me about duty of care to the purchaser (Yianni v Evans, 1981).
- Valuers provided a report to lender
- Subsidence discovered
- Action taken against valuers
- Court established valuers owed a duty of care to the plaintiffs
- There was a sufficient link between the parties that it could be foreseen that the carelessness of the valuation report might cause damage to the plaintiffs
Tell me about Nationwide’s Complaint Handling Procedure
- Nationwide will respond within 7 days advising the case is being investigated
o confirm our understanding of the circumstances leading to your complaint - A full response will then be provided within 21 days
o We will also advise you of what actions have been, or are to be taken as a result of your complaint and our investigations. - Includes an Alternative Dispute Resolution (ADR) mechanism in their Complaints Handling Procedure.
o The Property Ombudsman Service - A complaint log is maintained.
Tell me about RICS Client Money Protection Scheme
PROVIES PROTECTION WHEN RICS FIRM IS UNABLE TO REPAY CLIENT’S MONEY
Tell me about Terms of engagement
Sets out:
- facts of instruction
- scope
- liability
Tell me about Client money handling 2019
Objective ensure client money:
o kept safe
o accounts used appropriately
o Safeguarded with controls
Outwood Lane CR5 CR5 – why did you advise on a physical inspection?
- To demonstrate the best customer care
- The original valuation was based on information available online as well as info submitted by the applicant (including estimated floor area)
- By inspecting the property I could gather up to date accurate info
Outwood Lane CR5 Why was the original valuation appealed?
- The applicant believed the improvements undertaken to the property justified a higher value
Outwood Lane CR5 Was a desktop appropriate initially?
- Yes the property fit within the criteria for a desktop
- However, if I had completed the original val, I would have recommended a physical to ensure best client care
Outwood Lane CR5 How did you provide a high standard of client care?
- By physically inspecting the property to ensure all attributes were fully considered
- Booking the physical inspection at the applicants earliest convenience
- Early days of covid so talked them through the process to ensure health and safety compliance
Outwood Lane CR5 What was the outcome to the complaint?
- This wasn’t a complaint, it was an appeal to original valuation and the first step offered to avoid a complaint
- The applicant was very happy with the standard of service offered and specifically mentioned this
- They were also happy the valuation figure allowed them to obtain their desired mortgage rate
Outwood Lane CR5 Why was your valuation lower?
- Their estimated value was excessive
- Works completed could not justify it
Goodwin Close CR4 CR4 – why did you decline the application?
- Commercial premises – will not lend near commercial use likely to generate/cause smell, noise, disturbance, increased traffic, or indeed any factor likely to adversely impact demand/saleability
Goodwin Close CR4 How did you deal with the complaint?
- Responded within 7 days advising the case is being investigated
o confirm our understanding of the circumstances leading to your complaint - Stated a full response will then be provided within 21 days
- Includes an Alternative Dispute Resolution (ADR)
- A complaint log is maintained.
- I provided a full rationale for my decision, utilising nearby transactional history as well as TMW policy to justify my decision
Goodwin Close CR4 How did you log it internally?
- The complaint was logged centrally via the complaints handling team when it was received (received via an email to val services)
Goodwin Close CR4 How did you respond?
- Stated the impact from the commercial use garage and carpet manufacturer impacted the marketability of the subject
- The commercial use caused nuisance in the form of noise and smell
- As such lay outside TMW policy as a low risk lender
- Also my line manager reviewed my decision, response and rationale
Goodwin Close CR4 What process was followed?
- A complaints handling team is set up to deal with complaints
- Nationwide will respond within 7 days advising the case is being investigated
o confirm our understanding of the circumstances leading to your complaint - A full response will then be provided within 21 days
- We will also advise you of what actions have been, or are to be taken as a result of your complaint and our investigations.
- Includes an Alternative Dispute Resolution (ADR) mechanism in their Complaints Handling Procedure.
o The Property Ombudsman Service - A complaint log is maintained.
Goodwin Close CR4 How did you settle the complaint?
- My line manager reviewed my response and supported my decision
- Provided a full response to the applicant explain the decision
Goodwin Close CR4 How did you ensure the other side was satisfied with the outcome?
- Through follow up email
- Feedback questionnaire
- They also did not appeal the decision
What is client care?
Looking after client’s interests
Appropriate service that satisfies their needs.
What is a conflict of interest?
Where there is reduced impartiality as there is a pre-existing relationship which affects the duty to deliver services for a client
When have you demonstrated successful communication with your client?
Covid - booking jobs/H&S
Advising outside SLA
What does Countering bribery and corruption, money laundering and terrorist financing 1st edition include?
3 parts
1) Mandatory requirements for anti-bribery and corruption/anti-money laundering/terrorist financing.
2) Guidance - good practice
3) Supplementary guidance
What are the mandatory requirements of Countering bribery and corruption, money laundering and terrorist financing in relation to bribery and corruption? For bribery and corruption
In relation to bribery and corruption RICS-regulated firms must:
- BRIBE - not offer or accept a bribe
- PLANS -in place to comply
- REPORT -activity that breaches anti-bribery and corruption laws
- EVALUATE - perform periodic evaluations of risks that may lead to the bribery/corruption
- RETAIN - information detailing how firm met the requirements of this professional statement.
RICS members must comply with the above and:
- KNOWLEDGE - ensure that they have adequate knowledge of bribery and corruption to comply with this professional statement
What are the mandatory requirements of Countering bribery and corruption, money laundering and terrorist financing in relation to money laundering and terrorist financing? For money laundering or terrorist financing
Firms and Members must:
- FACILIATE - not facilitate ML & TF
- TRAINING
- REPORT - suspicions
- EVALUATE - risks
- CHECKS - on clients
- IDENTITY - verify client
RECORD - how firm has met the professional statement.
What are the three types of CoI?
- Party
- Own interest
- Confidential information
What is a party conflict?
duty of member acting for a client
conflicts with
duty owed to another client in the same transaction
Own interest conflict?
Duty of RICS member/firm for a client
conflicts with
their own interests
Confidential information conflict?
Conflict of the duty of an RICS member to provide material information to one client
and the duty of that RICS member to another client to keep the information confidential.
When can informed consent be sought?
where the RICS member/firm is satisfied that proceeding despite a Conflict of Interest is:
(a) in the interests of all of those who are or may be affected
(b) is not prohibited by law,
and that the conflict will not prevent the member/firm from providing competent and diligent advice
Client money - mandatory requirements
Rule 8 of Rules of conduct for firms
Must:
- HOLD - Hold client money in an account that only the RICS firm has access to
- ONLY - Hold only client money
- TITLE - Title of account – ‘includes client’ and ‘name of firm’
- IMMIDIATE - Funds must be immediately available
- RECORDS- Keep records and accounts
- COMPLEY - Comply with anti-money laundering legislation, rules, regs
Systems for managing of Client Care
Terms of Engagement
CoI
High Standard of Service
Complaint Handling Procedure
PII turnover and minimum level of indemnity
£100k or less - £250k
£100,001 to £200k - £500k
£200,001 and above - £1,000,000
Tell me about your duty of care towards your clients.
- Duty of care to Nationwide/ Lender
- Duty of care to the purchaser (under Yianni v Evans and Simith v Bush)
- implied duty of care towards the purchaser,
How have you defined your scope of services within the limits of your competence and PI insurance?
- Have a mandate set for capital valuations
- Do not undertake work outside level of competence/experience
What insurance requirements are you aware of (both legal and RICS)?
- PII
- Public liability insurance
- Employers liability insurance
- Business buildings insurance
