Client Care - Specific Questions

Question 1

Tell me about duty of care to the purchaser (Yianni v Evans, 1981).

Answer 1

• 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

Question 2

Tell me about Nationwide’s Complaint Handling Procedure

Answer 2

• 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.

Question 3

Tell me about RICS Client Money Protection Scheme

Answer 3

PROVIES PROTECTION WHEN RICS FIRM IS UNABLE TO REPAY CLIENT’S MONEY

Question 4

Tell me about Terms of engagement

Answer 4

Sets out:

• facts of instruction
• scope
• liability

Question 5

Tell me about Client money handling 2019

Answer 5

Objective ensure client money:
o kept safe
o accounts used appropriately
o Safeguarded with controls

Question 6

Outwood Lane CR5 CR5 – why did you advise on a physical inspection?

Answer 6

• 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

Question 7

Outwood Lane CR5 Why was the original valuation appealed?

Answer 7

• The applicant believed the improvements undertaken to the property justified a higher value

Question 8

Outwood Lane CR5 Was a desktop appropriate initially?

Answer 8

• 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

Question 9

Outwood Lane CR5 How did you provide a high standard of client care?

Answer 9

• 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

Question 10

Outwood Lane CR5 What was the outcome to the complaint?

Answer 10

• 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

Question 11

Outwood Lane CR5 Why was your valuation lower?

Answer 11

• Their estimated value was excessive

- Works completed could not justify it

Question 12

Goodwin Close CR4 CR4 – why did you decline the application?

Answer 12

• 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

Question 13

Goodwin Close CR4 How did you deal with the complaint?

Answer 13

• 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

Question 14

Goodwin Close CR4 How did you log it internally?

Answer 14

• The complaint was logged centrally via the complaints handling team when it was received (received via an email to val services)

Question 15

Goodwin Close CR4 How did you respond?

Answer 15

• 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

Question 16

Goodwin Close CR4 What process was followed?

Answer 16

• 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.

Question 17

Goodwin Close CR4 How did you settle the complaint?

Answer 17

• My line manager reviewed my response and supported my decision
• Provided a full response to the applicant explain the decision

Question 18

Goodwin Close CR4 How did you ensure the other side was satisfied with the outcome?

Answer 18

• Through follow up email
• Feedback questionnaire
• They also did not appeal the decision

Question 19

What is client care?

Answer 19

Looking after client’s interests

Appropriate service that satisfies their needs.

Question 20

What is a conflict of interest?

Answer 20

Where there is reduced impartiality as there is a pre-existing relationship which affects the duty to deliver services for a client

Question 21

When have you demonstrated successful communication with your client?

Answer 21

Covid - booking jobs/H&S

Advising outside SLA

Question 22

What does Countering bribery and corruption, money laundering and terrorist financing 1st edition include?

Answer 22

3 parts

1) Mandatory requirements for anti-bribery and corruption/anti-money laundering/terrorist financing. ​
2) Guidance - good practice
3) Supplementary guidance

Question 23

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

Answer 23

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 ​

Question 24

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 ​

Answer 24

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.

Question 25

What are the three types of CoI?

Answer 25

• Party
• Own interest
• Confidential information

Question 26

What is a party conflict?

Answer 26

duty of member acting for a client

conflicts with

duty owed to another client in the same transaction

Question 27

Own interest conflict?

Answer 27

Duty of RICS member/firm for a client

conflicts with

their own interests

Question 28

Confidential information conflict?

Answer 28

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.

Question 29

When can informed consent be sought?

Answer 29

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

Question 30

Client money - mandatory requirements

Answer 30

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 ​

Question 31

Systems for managing of Client Care

Answer 31

Terms of Engagement
CoI
High Standard of Service
Complaint Handling Procedure

Question 32

PII turnover and minimum level of indemnity

Answer 32

£100k or less - £250k
£100,001 to £200k - £500k
£200,001 and above - £1,000,000

Question 33

Tell me about your duty of care towards your clients.

Answer 33

• 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,

Question 34

How have you defined your scope of services within the limits of your competence and PI insurance?

Answer 34

• Have a mandate set for capital valuations

- Do not undertake work outside level of competence/experience

Question 35

What insurance requirements are you aware of (both legal and RICS)?

Answer 35

• PII
• Public liability insurance
• Employers liability insurance
• Business buildings insurance