*EP APC Client care Flashcards
Why does your firm have Professional Indemnity insurance?
It is one of the Rules of Conduct for Firms, 2007 (as amended 2017)
To protect surveyors, clients and third parties against negligence claims where there is a duty of care breached and a claim for damages arises
How much professional indemnity insurance does your firm require (3 bands)?
Firm’s turnover in the preceding year determines the minimum level of indemnity required for every claim:
£100,000 or less => £250,000
£101,000 - £200,000 => £500,000
£201,000 and above => £1,000,000
To manage their risk adequately, some firms may wish to hold a higher level of indemnity.
AWH = £1,000,000
RESEARCH NEW PII INSURANCE DOC
What is the maximum level of uninsured excess (2 bands)?
Liability of up to £500,000 => greater of 2.5% of the sum insured or £10,000
Liability of over £500,000 => 2.5% of the sum insured
When would your insurer need to know if a complaint was made against your firm?
Depends on your agreement with the insurer but usually when the complaints handling procedure is triggered as this could lead to a claim for negligence.
AWH Procedure
What procedures are required to be in place if a complaint has been made (RICS guidance, timescales, firm services)?
- RICS has issued a Guidance Note on Complaints Handling, 2016
- Complaint should be acknowledged within 7 days and investigated within 28 days
- Firms must include a RICS approved ADR method e.g. Centre for Dispute Resolution (CEDR) or the RICS Dispute Resolution Service
What is the guidance set out in RICS Complaints Handling, 2016 (procedure, PII, CHP issue, complaints, inclusion)?
- Firm’s written complaint handing procedure (CHP) must be approved by RICS
- Notify your PII insurer as soon as possible if there is a complaint as this could lead to a claim for negligence
- Details of the CHP should be issued to a client at the same time as Terms of Business
- Complaints log must be maintained to show the details, progress and outcome of any complaints
- Firms must include an RICS approved Alternative Dispute Resolution (ADR) mechanism in the Complaints Handling Procedure
When you first receive a complaint, how should it be dealt with (initially, complaint format, issue, appointment details)?
Aim to deal with the complaint in house initially
Ask for the complaint to be made in writing
Issue details of the CHP to the complainant
Share the details of the Complaints Handling Officer with the complainant, as the person who should be contacted in the first instance
If a complainant is unhappy with how the complaint has been dealt with in house, what should be done (choice, provision)?
- Use an independent redress scheme chosen by the firm
- Name of the redress scheme must be provided to the complainant e.g. Centre for Effective Dispute Resolution (CEDR), Property Redress Scheme and RICS Dispute Resolution Service
When will the RICS become involved with a complaint?
If a member fails to respond to the complainant or prevents the party gaining access to an independent redress mechanism
What should a sole practitioner do differently with regards to the their complaints handling procedure?
Must nominate a surveyor in another firm to act as their complaints handling officer
How do you act upon feedback from a Client?
- Feedback should be formally recorded in some way, i.e. Client Satisfaction Questionnaires.
- If feedback is negative, it should be verified and necessary action taken.
- If a formal approach is required, this should follow the CHP.
What other insurance (other than PI) would you need to have if you had your own premises?
- Employers Liability Insurance.
- Third party Liability Insurance.
Can you give me more detail on what Employers Liability Insurance covers?
• Covers employers for compensation claims against you by employers for accidents or illness that occur during their work.
Can you tell me more detail on what Third Party Liability Insurance covers?
• Covers you against actions of a third party.
Third-party insurance is a policy purchased by the insured (first party) from the insurance company (second party) for protection against the claims of another (third party).
What does good client care require (understand, approach, communication, policy, procedure, insurance)?
- A clear understanding of the client’s objectives and aims.
- A professional approach.
- Clear, concise communication.
- A quality assurance policy. (a statement of the company’s desired level of quality for a service or product.)
- Complaints handling procedure.
- Professional Indemnity Insurance.
How do you establish a Client’s objectives (2 steps)?
- Have a pre-start meeting with them.
- If there is still ambiguity then have further meetings/correspondence to clarify.
What do you clarify with regards to a clients objectives (5)?
- Fee
- Required turnaround time
- Level of detail - Report
- Any specific items to report/focus on
What components must a CHP include?
RICS provides a template to assist firms which states;
- complaint reviewed by senior member of firm or complaints officer
- the compliant reviewed by independent 3rd party
- notify PI insurer of complaint
- must include the contact details of those who will deal with the complaint
- must include a redress mechanism
- must be clear simple
- must be free except stage 2, but fees covered by the complainant
What is client care?
Looking after a client’s best interests and providing an appropriate service that satisfies their needs.
Can be achieved by 1. professionalism 2. competence 3. trust 4. communication
When should you decline an instruction of new work?
- Conflict of interest
- Outside scope
- Illegal activities
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
How would you proceed if a client wanted you to work with them despite a conflict of interest?
I would obtain informed consent in writing.
I would ensure that the client is fully informed about the Conflict of Interest and the associated risks and other options available.
Who are your clients?
An individual or firm to who you or your firm provide a service to.
How do you establish your clients’ objectives?
Their instruction letter and confirmed within the Terms of Engagement.
What influences how a fee is calculated?
- Value of the property
- Level of work required - MV, MR, & special assumptions
What is a KPI?
Key Performance Indicator
Enables a team to monitor performance and make smart decisions.
How are KPIs used?
- Goal measurement
- Providing information and feedback
- Education
- Staff morale
- Consistency and continuity
When have you demonstrated successful communication with your client?
UPDATE
How do you act on feedback from a client?
- Listen
- Understand their needs
- Take actions required
- Communicate updates
What is the RICS Client’s money protection scheme?
client’s protection to compensate for the losses of money
- Gives protection to members of the public by making funds available for their reimbursement when all other avenues have been exhausted.
- The RICS firm repay the losses via insurance or its assets.
What would you do if you were ask to survey the structure of a building
I would act within my area of expertise and act with integrity and appoint a competent professional.
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?
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?
Firms and Members must:
- FACILIATE - not facilitate money laundering or terrorist financing
- TRAINING - have systems/training to comply with these laws
- REPORT - report any suspicions of money laundering or terrorist financing activities
- EVALUATE - evaluate/ review risks that business relationships present to money laundering or terrorist financing
- CHECKS -conduct checks on clients and customers
- RELIANCE - use reliance only where there is an appropriate level of confidence in the quality of the information
- IDENTITY - verify the identity of client by undertaking identity checks and identify purpose of the transaction
RECORD - retain information detailing how the firm has met the requirements of this professional statement.
What are the three types of CoI?
- Party
- Own interest
- Confidential information
What is a party conflict?
Where duty of RICS member/firm acting for a client
conflicts with
duty owed to another client in the same transaction/assignment.
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 handling 1st edition, October 2019
- firm should preserve the security of clients’ money
- firms holding clients money must ensure they are registered with the appropriate appropriate RICS scheme:
- e.g RICS Client Money Protection Scheme for Surveying Services
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
- PROMPTLY - Ensure client money paid into account promptly
- RECORDS- Keep records and accounts
- COMPLEY - Comply with anti-money laundering legislation, rules, regs
Systems and Procedures Managing Process of Client Care
Terms of Engagement
CoI
High Standard of Service
Complaint Handling Procedure
AWH CHP
Respond within 7 days advising the case is being investigated
Full response within 21 days
- advise actions taken as a result of your complaint
Includes (ADR)
- The Property Ombudsman Service
Complaint log
ASK LIZ
Tell me about the different stakeholders you have come across in your role.
- Employer AWH
- Lender and their borrower (loan security)
- Vendor and buyer (private client)
Tell me about how you have tailored your client care to one of these stakeholders.
- Owe a duty of care to the applicant as well as the lender
- Therefore ensured to report all serious defects as the purchaser may not commission their own survey
Why is it important to you to set objectives?
- Ensure client satisfactions
- Ensure met the aims of the instruction
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
How have you used standard forms of appointment?
- Standards terms of engagement are used for each instruction
CLIENT CARE - How have you presented a positive image of the RICS in your work?
I apply the principles of the RICS to my daily work
I understand the RICS’s commitment to lifelong learning and provide professional and technical events which reflect positively on the RICS.
Client Care - what do you discuss in phone call (valuation)? Why? / Give me an example of excellent client care? / How have you built trust with clients?
If report up to detail and format client requires.
If there is any areas of confusion in my report, and therefore how I could reformat or rewrite it to meet their needs.
If they flag any issues they see in my valuation analysis, which I can then investigate and provide feedback on the results of whether it changes my opinion, and why/why does not.
When working on an instruction with a new client, I phone to introduce myself and am in regular
communication to advise on progress with the instruction. I also aim to build trust based on the work I
undertake and have, on two particular occasions, had further instructions for both the specialist markets and
valuation departments from the same client following successful completion of my instruction.
Pre-Instruction Checks
- Competence
- Check for conflicts
- AML checks
- Ensure got suitable PI Cover
- Terms of Engagement
What information do you need to undertake a conflict check?
Name of business
Name of person dealing with from business
Property address
What do you look for when undertaking a conflict?
Any previous involvement with the property or borrower - either within my team or within other business units
Investigate previous instructions if come up and see if any conflict
When should you decline an instruction of new work?
- If there is a conflict of interest
- If you are not competent to do the work
- If it involves illegal activities
