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APC > Ethics > Flashcards

Ethics Flashcards

1
Q

When did the rules of conduct come into effect?

A

2nd February 2022

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2
Q

What are the five rules of conduct?

A
  1. Members and firms must be honest, act with integrity and comply with their professional obligations including obligations to the RICS.
  2. Members and firms must maintain their professional competence and ensure that services are provided by competent individuals who have the necessary expertise.
  3. Member and firms must provide a good quality and diligent service.
  4. Members and firms must treat others with respect and encourage diversity and inclusion.
  5. Member and firms must act in the public interest, take responsibility for their actions and act to prevent harm and maintain public confidence.
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3
Q

Can you give a time when you have acted with honesty and integrity?

A

I ensured that I was acting in accordance with both the Misrepresentation Act 1967 and the Estate Agency Act 1979. I made sure the information provided within my particulars was accurate and that all distances and measurement were specified as approximate

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4
Q

Can you give a time when you have acted within your professional competence?

A

When carrying out the disposal of 74 Mitcham road I was questioned on complex legal matters. I informed them that it was outside my area of expertise and advised them to get in touch with the legal professionals.

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5
Q

Can you give an example of when you have provided a good quality and diligent service?

A

When carrying out the valuation of the office in Camden for internal financial reporting purposes. I delivered the report on time and to a high standard. This led into further work from the client for internal reporting purposes.

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6
Q

Can you given a time when you promoted diversity and inclusion?

A

I have undertaken numerous training courses. I also arranged for a speaker to come in to promote diversity of thinking in the workplace.

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7
Q

Can you give an example of when you have acted in the public interest, prevented harm or promoted trust within the profession?

A

A tenant of a potential disposal we went round did not have an update to date EPC. The landlord wanted to go ahead with marketing without an EPC. I advised my client we should not be marketing without valid epc.

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8
Q

What are the other rules?

A
  1. Trust
  2. Integrity
  3. Respect
  4. Take responsibility
  5. Provide a high level of service
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9
Q

What is a royal charter?

A

A formal document issued by the King, granting a right or power to an individual or a corporate body It defines objectives, constitution and powers to govern own affairs.

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10
Q

What are the professional obligations for members & firms?

A

Members:
- Must comply with CPD requirements
- Must cooperate with the RICS
- Must promptly provide all informational reasonably requested by Standards and Regulation board

Firms
- Publish a complaint’s handling procedure which includes a dispute resolution provider approved by the RICS
- Ensure all previous and current work is covered by public indemnity insurance that meet RIC standards
- Sole practise firms must ensure they have appropriate arrangements for their work to continue in any event they cannot work
- Firms must cooperate with the RICS
- Must promptly provide all informational reasonably requested by Standards and Regulation board
- Must display on their business literature, in accordance with RICS published policy on designations, a designation to denote that they are regulated
- Report to RICS any matter that they are required to report under the Rules of Registration of Firms

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11
Q

What are the benefits of being a member?

A
  1. Status - client confidence
  2. Recognition - promotion of your professional excellence to government and markets
  3. Market Advantage - Competitive advantage
  4. Knowledge - CPD, knowledge sharing
  5. Network
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12
Q

What to when closing a firm?

A

Inform RICS of the closure
Ensure clients are informed and hand over arrangements to another firm
Return any moneys help by clients to their own accounts
Inform insurers and ensure have appropriate run off cover for min 6 years
Retain a copy of the client files and records for a min of 6 years

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13
Q

What is PII run-off cover?

A

Provide cover for allegations of professional negligence after you’re no longer practising or retired

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14
Q

Are professional statements mandatory or voluntary?

A

Mandatory

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15
Q

Are guidance notes mandatory or voluntary?

A

Voluntary

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16
Q

Give me an example of a professional statement?

A

Conflict of interest, Global 2017

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17
Q

Give me an example of a Guidance note?

A

Surveying safely 2018
Comparable evidence in real estate 2019

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18
Q

Given me an example of a code of practise?

A

Code of measuring practise (2015)
Rating consultancy code of practise

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19
Q

What are the different types of conflicts?

A
  • A party conflict – relating to work on the same or related instruction for two different parties
  • A own interest conflict – relating to a personal interest
  • A confidential information conflict relating to work between two parties that is confidential
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20
Q

What is informed consent?

A

Receiving permission to carry out the work. Surveyors should only seek it if satisfied all relevant parties are best served by doing so. Can only be given in writing

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21
Q

What are three steps to handling conflict?

A
  1. Conflict avoidance – because you’re impartiality is compromised and should be avoided where possible
  2. Written advice to both parties – set out in writing as soon as possible the nature of the conflict and request written confirmation from both clients of their informed consent.
  3. Conflict management – set up information barriers in accordance with what was agreed with the client.
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22
Q

Once qualified what is the CPD requirements?

A

20 hours per year, of which 10 must be formal

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23
Q

Why have PI cover and how do you go above getting one?

A

Professional indemnity insurance
It is to protect, clients, surveyors and third parties against negligence claims when there is a duty of care breached and a claim for damages.
Details are set out in the RICS professional Indemnity Insurance Requirements.
Must be underwritten by an RICs approved insurer.

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24
Q

What are the difference PI cover based on?

A

The current minimum requirement is based on turnover of the firm. If turnover in the preceding year is
£100,000 or less – the minimum level of indemnity is £250,000
£100,001-£200,000 - the minimum level of indemnity is £500,000
£200,001 and above - £1,000,000

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25
Q

What to do if you’re starting your own practise?

A
  • Inform RICS you’re setting up your own practise
  • Arrange PII and send the details to the RICS
  • Set up procedures to address the requirement of the client money handling professional statement
  • Register for the RICS Valeur registration system
  • Get approvsl for RICS complaints Handling procedure
  • Appoint a complaints handling offcer
  • Obtain a logo kit from the RICS and use to produce all practise material to ensure compliance
  • Plan for succession/future running of the business
  • Ensure CPD is logged online
  • Set up a staff training plan
  • Ensure completion of an online RICS annual return at the end of the year
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26
Q

Who is the CEO of RICS

A

Justin Young

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27
Q

Who is the interim Standards and regulation board chair

A

Nigel Clarke

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28
Q

From January 2023 who is the RICS president?

A

Ann Gray

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29
Q

What was the Bichard review and when was it published?

A

Lord Michael Bichard published his independent Bichard RICS Review (June 2022) which was commissioned by the RICS Governing Council to review the Institution’s purpose, governance and strategy following the recommendation from the Levitt Review.

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30
Q

What further RICS obligations do you have when you’re qualified?

A

You have to update your ethics competence every 3 years

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31
Q

When was RICS founded?

A

1868

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32
Q

What is the background to the RICS?

A

RICS has a Royal Charter, initially granted by Privy Council in 1881
RICS regulations and bye-laws set out the governance of the insitution

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33
Q

How many members were there as of Jan 2023

A

137,500 qualified and trainee members

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34
Q

What are the 4 levels of membership?

A

FRICS
MRICS
AssocRICS
Trainee/studen

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35
Q

How do you become a fellow?

A

You need to provide the following for the fellowship assessor to consider
- evidence of achievement of Four fellowship characteristics which include five or more years at MRICS, a leadership role, professional/technical achievement, academic achievement or raising the profile of the RICS.
- A portfolio of professional achievement to support the application is also required which includes your CPD record.

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36
Q

What is the current governance structure of the RICS?

A

25 members
17 specialist professional groups
RICS is currently governed under the terms of it’s Royal Charter, by various councils, boards and associations
The governing council currently has 21 members and runs the RICS, providing management and strategic direction.
The Regulatory Board, Management Board and various boards and committees report to Governing Council.
There are 17 specialist professional groups covering property, land and construction. Each professional group has an elected board and is responsible for outlining standards of competence and practice.

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37
Q

What is the UK structure of the RICS?

A

4 national associations
10 regional boards
Local Associations

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38
Q

What is RICS Levitt Review?

A

The Levitt Report was commissioned by the RICS following a Treasury management audit in 2018
Prior to the audit the RICS had to extend it’s overdraft facility by circa £3m due to inaccurate cashflow forecasting
The treasury management audit offered a no assurance verdict on RICS internal financial control procedures and following this the Levitt report was commissioned as an independent review.
The conclusion of the Levitt report alluded to an internal power struggle due to its two board structure made up of a Management Board and Executive Board

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39
Q

What were the Levitt recommendations?

A

The RICS accepted each of Levitt’s recommendations including
-The RICS Governing Council are to have more oversight over internal dealings of the RICS
-The RICS Governing Council are to be briefed by the management board as opposed to a single CEO
-The RICS Governing Council are to oversee executive management bonuses
-The report called for greater transparency as the CEO could have involved the -management board in order to rectify the treasury issues
-No evidence of improper or illegal conduct was discovered.

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40
Q

What does the RICS standard for?

A

The Royal Institution of Chartered Surveyors

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41
Q

What is the 2020 quote from the RICS as the role of the RICS?

A

Promotes and enforces the highest professional qualifications and standards in the development and management of land, real estate, construction and infrastructure

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42
Q

What are the 3 main role of the RICS?

A
  1. Maintain the highest standard of education and training
  2. To protect consumers through strict regulation of professional standards
  3. To be the leading source of information and independent advice on land, property, construction and associated environmental issues
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43
Q

What is the Bichard review and how did it come about?

A

The review followed the independent review of internal governance failings with RICD carried out by Alison Levitt in 2021.

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44
Q

What did the Bichard review look at?

A

Clarify the purpose of the RICS, including its responsibility to act for the public advantage
Make recommendations on its governing structure to deliver that purpose
Provide proposal for the incoming leadership and governing body on the future culture and strategy of the institution

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45
Q

What were the seven recommendations from the Bichard Review?

A

1) A renewed and increased focus on the public interest remit of RICS, including amending the Royal Charter and creating a public interest panel to advise Governing Council
2) Maintaining self-regulation, through greater independence for regulatory functions
Increased focus on Diversity and Inclusion across the profession and within RICS governance
3) Empowering and enabling members through greater support for regional boards, alongside increased member engagement, with renewed focus on younger members
4) Undertaking an independent review of RICS’ governance and effectiveness at delivering against its Charter for the public advantage once every five years
5) A new simplified, clear, accountable governance structure
6) Showing greater leadership on the issues that matter most to society, such as sustainability and climate change

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46
Q

What is the outcome from the Bichard review?

A

RICS has agreed to adopt all the Bichard recommendations and changes are in hand
The aim is to deliver a member-led public interest focused RICS with 5 key themes of governance, strategy, culture and values and member service

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47
Q

3 benefits of regulation for firms?

A

Confidence - for clients as regulated firms are monitored by RICS
Professionalism - firms have to provide clear, impartial and expert advice
Security - firms have to have a recognised complaints handling procedure, access to free independent redress and PI cover

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48
Q

What is the RICS requirement for registration?

A

Firms providing surveying services to the public must register for regulation to ensure that there is a recognised quality benchmark for all firms
If there are no RICS members, a firm cannot register
Firms must annually make a return to the RICS confirming their compliance with their obligations

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49
Q

Where will disputes concerning the registration for a firm be heard?

A

By the RICS Standards & Regulation Board

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50
Q

What are the RICS Rules for the Regulation of Firms 2022- how many of the members have to be RICS members for it to be reguated?

A
  • if 50% of Principles of a UK firm which provides surveying services are RICS members then it has to be regulated, and if at least 25% then it can apply to be registered
  • Principals are sole practitioners, directors, partners or board members (or anyone equivalent to those statuses) or someone who is able to act autonomously
  • Each firm must nominate a ‘Responsible Principal’ who is obliged to ensure all reasonable steps are taken and systems are in place to ensure compliance with regulatory and RICs requirements,
51
Q

As of April 2020 what new rules came into effect around the RICS logo and the use of it?

A

A restriction to the use of the designation ‘Chartered Surveyors’ by firms to the trading name only.
Only RICS members and registered firms can use the logo.
There will be a requirement that Regulated Firms must include a prescribed text in terms of engagement to explain what being regulated by the RICS means

51
Q

What information is required in an annual return?

A
  1. type of business and staffing details
  2. name of the responsible principle
  3. stat. regulated activities - such as financial services
  4. Nature of clients
  5. Complaints handling procedure details and records
  6. Professional indemnity insurance details
  7. Whether the firm holds client’s money
52
Q

When were the new rules published?

A

October 2021 and effective from 2nd February 2022

53
Q

What did the new rules of conduct replace?

A

The previous rules of conduct for members and firms and the 5 global professional and ethical standards

54
Q

What are the rules accompanied by?

A

12 supporting case studies

55
Q

What’s the RICS rationale in developing the new rules of conduct?

A
  • A simpler structure
  • Clearer examples
  • Focusing on respect, diversity and inclusion
  • Undertaking evolving technology
  • Tackling global challenge
56
Q

What is the Ethics Decision Tree?

A

Provides a framework of questions which members should ask themselves when facing a situation in which they are asked to act in a potentially unethical manner or situation.
It encourages considering the legality of one’s actions and their consistency with the Rules of Conduct as well as to consult with appropriate people and have clear reasoning before making any decisions.
The test it whether members would be content tohave their decisions or actions made public

57
Q

What does the RIC provide which you can use when making a difficult/ethical decision?

A

RICS Regulation Confidential Hotline

58
Q

When can a disciplinary procedure be triggered?

A

By someone complain to the RICS, an allegation by a client or third party or because information received or established by the RICS

59
Q

Where can you look to to find an outline of the regulatory approach by the RICS of regulated member

A

Regulatory decision making Version 3 (w.e.f. Feb 2022)

60
Q

Where is the disciplinary processes set out?

A

RICS regulatory tribunal rules (2020)

61
Q

What are the 3 levels of disciplinary actions?

A
  1. Action by Head of Regulation
  2. Disciplinary Panel (drawn from the independent Regulatory Tribunal)
  3. Appeal Panel
62
Q

What is the initial investigation stage? (Disciplinary Procedures)

A

First step is a formal investigation by the Head of Regulation of the RICS
Head of Regulation can initiate one of the following four actions upon completion for their investigation if they consider that disciplinary action is required

  • Serve a fixed penalty notice
  • Make a regulatory compliance order
  • Refer the matter to a single member of the Regulatory Tribunal for consideration
  • Refer the matter directly to a disciplinary panel
63
Q

What are fixed penalties?

A

Procedures used for breaches of the Rules relating to the supply of information to the RICS by firms and members. These may consist of a fine and/or a caution

64
Q

What is regulatory compliance order

A

For low level breaches of the Rules, which can easily be corrected
It is a written document which states the terms upon which the member or firm must take or desist from taking certain actions in a specified time period and an agreement to pay the fine
It may cover issues such as non-compliance with RICS rules including failure to comply with CPD. Failure to undertake appropriate CPD may result in sanctions such as a fixed penalty and disciplinary panel actions.

65
Q

What is the action taken by a disciplinary panel?

A

Used for more serious breaches of conduct
The Head of Regulation can consider that a hearing is required under the discipline rukes
Membership of a disciplinary Panel includes non RICS members

66
Q

What are the penalties available to a regulatory Tribunal Disciplinary Panel?

A
  1. Issue a regulatory compliance order
  2. Reprimand
  3. Fine
  4. Impose an unlimited amount of fine per breach but it must be proportionate to the offence
  5. Impose a conditions upon future continued registration
  6. Expulsion from membership or removal of the firm
  7. Require publication of the results of the hearing in the RICs Modus magazine on the RICS website and in the local newspaper where the member or firm is based
67
Q

What is the appeal panel?

A

AP can consider a member or firms appeal against a review of decision relating to the above procedures
They will review the decision made having regard to the evidence previously presented and any new representations. The AP can allow the appeal and vary the penalty previously imposed.
Membership of this panel includes non members (lay members)

68
Q

What is included in the RICS Guidance for RICS Members 2021?

A

The importance of social media networks to member and firms.
It reminds members of the high standards of professional behaviour expected of RICS members and that the Rules of Conduct protect the interest of members.

69
Q

RICS is likely to investigate concerns about social media posts where they involve?

A
  • Discrimination
  • Dishonesty
  • Abusive or threatening behaviour that could cause harm, distress or offence
  • Bullying, harassment or victimisation
  • A pattern of frequent or lots of concerning comms
70
Q

The RICS are unlikely to investigate social media posts that are?

A

Critical of an organisation, it’spolicies and performance rather than of an individual
Use professional and respectful language
Are removed if requested to do so

71
Q

When the RICS also take action against social media?

A

When a post may damage public confidence or trust in the profession

72
Q

Can personal posts of members be reviewed by the RICS?

A

Yes

73
Q

What international standards are there (Mandatory)?

A
  1. RICS valuation - Global Standards 2021
  2. International Property Measurement Standards (IMS) 2014. 16,18, 19
  3. International Construction Measurement Standards
74
Q

What Practise Statements (Mandatory)?

A
  1. Surveyors Acting as Expert Witnesses (2014)
  2. Surveyors Acting as Advocates (Scotland) (2008)
74
Q

What are the 11 Professional Statements (Mandatory)?

A
  1. Countering Bribery Corruption, Money Laundering and Terrorism (2019)
  2. Conflict of Interest, Global (2017)
  3. Conflict of Interest - UK Commercial Property Market Investment Agency (20170
  4. UK Commercial Real Estate Agency (2016)
  5. UK Residential Real Estate Agency (2017)
  6. Real Estate Management (2016)
  7. Property Measurement (2018)
  8. Code for Leasing Business Premises (2020)
  9. Service Charges in Commercial Property (2018)
  10. Client Money Handling (2019)
  11. RICS Home Survey Standards (2019)
75
Q

What are the 11 Guidance notes (Voluntary)?

A
  1. Japanese Knotweed and Residential Property (2022)
  2. Sustainability and ESG in Commercial Property Valuations and Strategic Advice (2021)
  3. Risk, Liability and Insurance
  4. Asbestos Legal Requirements and Best Practise for Property Professionals and Clients (2021)
    Valuation of Residential Leasehold Premises (2021)
  5. Valuation of Properties in multi-storey, multi occupancy residential buildings with cladding (2021
  6. Assessing viability in Planning under the NPPF 2018 (England) (2021)
  7. Comparable Evidence in Real Estate Valuation (2018)
  8. Valuation of Development Property (2019)
  9. Surveying Safely (2018)
  10. Reinstatement Cost of Assessment of Buildings (2018)
76
Q

3 Codes of Practise (mandatory or recommended good practise)

A
  1. Code of Measuring Practise (2015)
  2. Rating Consultancy Code of Practise (2017)
  3. Service charge residential management code (2016)
77
Q

What are key points around fee negotiations?

A

Firms should avoid price fixing, aggressive fee cutting or collusion with competitors
Fees should be market based and agreed on an ad hoc basis
Healthy competition is encouraged
You can enter into further fee negotiations with a prospective clients after you have submitted your initial fee proposal, having regard to the above
You can vary your proposed level of service when negotiating fee but ensure you are providing a high standard of service
Do not undercut other firms
You must be transparent and use ToE
Consider fee in the context of Bribery Act 2019 and the Rules of Conduct

78
Q

What are the ToE used for?

A

State in writing the client’s agreement to the proposed fee basis, payment of expenses and copy of the firms CHP is available upon request

79
Q

What are the three steps to follow before accepting an instruction?

A
  1. Check professional competence
  2. No conflict of interest or personal interest
  3. Confirm ToE in writing and get written approval from the client before you start the work
80
Q

What compliance is required for agency work?

A

Section 18 of the Estate Agency Act 1979 and money laundering checks (Money Laundering Regulations 2017, as amended)

81
Q

What does the consumer Rights Act 2015 allow?

A

A cooling off period of 14 days from the date of the agreement

82
Q

What exaples are used for appropriate reasons to decline an instruction?

A
  1. You are not competent
  2. You do not have suffience facts on the issye
  3. The proposed client will not sign ToE or do AML
  4. There is a conflict of interest or personal interest
  5. A PII liability can cannot be agreed
  6. The advice is for a friend or on a pro bono basis ( e.g. free for a charity) and your PII will not cover the work carried out
  7. The potential client is included in the UK gov sanctions list
  8. Would you be content for your actions to be made public
83
Q

What can you use when considering whether to act for a client?

A

The RICS Ethics Decision Tree

84
Q

Difference between conflict avoidance and conflict management?

A

Avoidance - don’t accept the instruction
Management - When it is accepted band steps are agreed i.e. information barriers

85
Q

Explain the RICS professional statement on Conflict of Interest (2017)

A

Mandatory statement came into effect on 1st Jan 2018
It states that a members must not advise or represent a client where doing so would involve a conflict of interest or a significant risk of a conflict of interest other than when informed consent has been provided

86
Q

When can informed consent be sought?

A

Where the RICS members or regulated firms is satisfied that proceeding despite a COI is in the interest of all those who may be affected and not prohibited by law

87
Q

What are other key areas of the conflict of interest professional statement?

A
  • all conflicts must be managed in accordance with the Professional Statement
  • Every RICSS must have in place effective systems and controls appropriate to the size and complicity of the business
  • All firms must keep records to show their compliance with the statement
88
Q

What are the 3 steps approach to informed consent

A
  1. Disclose the nature of the conflict, the circumstances surrounding it and any other relevant facts and set out your proposals for how the firm intends to deal with the conflict i.e. information/ethical barriers
  2. Be as clear as you can and ensure that both parties can make their own decision
  3. Request written confirmation from both clients of their informed consent that your firm can act in accordance with the provisions of the procedure proposed.
89
Q

How should an information barrier be operated?

A
  • The barrier must be robust enough to offer no chance of information between two parties
  • Must take reasonable steps to operate an effective barrier
  • The surveyors acting on the two sides must be different and they must be physically separated, all preferably in different buildings or on different floors of a building and with separate support teams
  • All information regarding the instruction should be securely stored
  • keep a clear audit trail of the conflict check process and all written and oral communications, the firms compliance office must oversee all actions.
90
Q

What does the RICS Professional statement - Conflicts of Interest - UK commercial property market investment agency (2017) set out and when did it come into effect?

A
  • Whilst the statement sets tout high level principles for the appropriate identification and management of conflicts, this additional mandatory professional statement relates only to UK commercial investment agency work where a specific risk has been identified.
  • Dual agency must not be undertaken in any circumstances from 1st Jan 2018
    Came into effect 1st January 2018
91
Q

Taking from Conflicts of Interest - UK commercial property market investment agency (2017), what is the stance on multiple introductions?

A

The statement deals with multiple introductions, where an agent has competing contractual relationships simultaneously with several buyers for commercial real estate investment opportunities.

An agent may make multiple introductions of a commercial real estate investment opportunity.

When a client appoints an agent to act on their behalf in acquiring a commercial real investment, ToE, must be agreed in writing and the agent must make it clear whether the agent is acting on an exclusive or non-exclusive basis.

92
Q

What happens if an an agent is working on an exclusive basis?

A

Other prospective buyers with whom the agent was in contract must be infomrerd that the agent is no longer able to advise them.

93
Q

What happens if an an agent is working on an non- exclusive basis?

A

The agent must obtain informed consent from the clients subject to the necessary information barriers being in place.

94
Q

What is incremental advice?

A

This is where an agent is approached by another party to provide advice to include valuation, building surveying, or planning , related to a purchase or disposal that is incremental to an existing instruction.

For example, given where an agent is acting for the seller in relation to a disposal bit is approached by the buyer, or its lender to provide a valuation.

RICS members must only provide such incremental advice if consent is given and an information barrier is put in place before providing any incremental advice to the prospective buyer.

95
Q

What is a person interest/own interest conflict?

A

This arises when acting for a family member, a close business associate or someone with whom you have a financial or personal interest or benefit (known as a connected person).

You must not let a personal interest interfere with or influence your professional judgement.

Declare facts promptly and in writing before you accept the instruction

96
Q

What does Section 21 of Estate Agents Act 1979 relate to?

A

Personal interest/own interest conflict

97
Q

What does the RICS bye-law state?

A

That client confidentiality must be maintained for all client’s affairs

This includes historic information and information provided by a client prior to instruction.

98
Q

What happens if a third party wants to access your files?

A

Must get your clients approval first unless you are a subject to a statutory duty overriding the client’s confidentiality rights such as the police, HMRC investigation

99
Q

How long should old files be kept for?

A

Minimum 6 years before disposal and destroyed securely

100
Q

What happens if a surveyor overheard or finds out confidential information from a party that is not their client?

A

This cannot be used for their own purpose.

The client/sender should be advised of the error.

The matter should be recorded in a not to the firms compliance officer.

If you have received it via email etc then it should be disposed of securely.

101
Q

What guidance not relates to complaints handling procedure?

A

RICS Guidance Note on Complaints Handling (2016)

102
Q

Tell me about a complaints handling procedure?

A
  • must be approved by the RICS
  • must notify your PII insurers as soon as possible if their is a complaint as this could lead to a claim for negligence
  • Details of the complaints handling procedure should be detailed in the Terms of Business
  • A complaints log must be maintained to show the details, progress and outcome of complaints
  • Firms must include the RICS approved Alternative Dispute Resolution (ADR) mechanism in their complaints handling procedure
103
Q

What are the standard minimum procedures for the handling of a complaint? - Stage 1

A

Stage 1 (inhouse)
- details of the CHP should be issued whenever the firm receives from a valid complainant to whom the firm owes a duty of care to
- Details of the complaints handling officer must be states as the person to be contacted in the first instance
- The complaint must be made in writing
- Procedures and strict timescales for the investigation of the compliant should be recorded
- A complaint should be acknowledged within 7 days and investigated within 28 days

104
Q

What are the standard minimum procedures for the handling of a complaint? - Stage 2

A

ADR - Third party resolution
- If the complainant is not happy with the review the second stage of the CHP involves using an independent redress scheme that thefirm has chosen to use
- The name of the relevant redress mechanism must be provided to the complainant such as the centre for dispute resolution.

105
Q

When would the RICS become involved in a compliant?

A

only if a member fails to respond to the complainant or prevents the party gaining access to an independent redress mechanism

106
Q

Who is the complaints handling officer in a sole practise?

A

They appoint a surveyor in another firm to act as their CHO

107
Q

What ADR does FG use?

A

Arbirtation

108
Q

What four requirements are there for CPD?

A

Members and firms must undertake a minimum of 20 hours a calendar year
Of the 20 hours at lease 10 must be formal CPD
All members must maintain a relevant and current understanding of the Rules of Conduct during a rolling 3 year period
All members must record their CPD activity using the RICS CPD Management System available online on the RICS website by 31st Jan each year

109
Q

What is formal CPD?

A

This includes all forms of structured learning that has clear leaning objectives and outcomes
Example include structured online training, professional courses/seminars

110
Q

What can you use to decided whether CPD is informal or formal?

A

The RICS Decision Tree

110
Q

What is informal CPD?

A

This includes self managed learning that is relevant or related to your professional role
This includes private study on the job training and informal seminar/events

111
Q

What is the maximum level of uninsured excess required by the RICS?

A

turnover up to £10 mill - The greater of 2.5% of the sum insured or £10,000
turnover over £10 mill - No set limit

112
Q

Is PII cover needed for pro-bono (unpaid) work?

A

YES

113
Q

Adequate and appropriate run off cover is required for the following cessation of trading?

A
  • For consumer claims - a minimum of £1 mill of aggregate cover over a minimum of 6 years
  • For commercial claims - must consider what is adequate and appropriate for at least 6 years
114
Q

Firms that are unable to obtain run off cover from their insurer or open market can claim from where?

A

RICS run off pool

115
Q

What foes the guidance note ‘risk, liability and insurance’ 1st edition 2021 advice include?

A

From May 2021, insurers must provide cover for fire safety claims on a property of 4 storeys or higher
RICS recommend the use of liability caps to manage risks associated with professional work
Be aware of third party reliance and make it clear that advice can only be relied upon by the client named in their ToE

116
Q

How can you avoid Negligence claims?

A
  • clearly understand the clients objectives
  • ensure you are competent to undertake the instruction
  • undertake work in accordance with the professional statements/guidance notes
  • cap the professional liability excess on your PII policy in the ToE
117
Q

What are the six areas of good practice set out in the RICS PS ‘Client statement Client Money Handling(1st edition) 2019

A
  1. holding client money
  2. providing information to client
  3. receipts of client money
  4. payments from client accounts
  5. accounting records and controls
  6. compliance
118
Q

If you were setting up a new firms, what statutory compliance would you need?

A
  • Equality Act 2010 compliance
  • Bribery Act 2010 compliance
  • Appoint a MLRO
  • Health and Safety Act 1974 compliance
  • Estate Agency compliance
  • Inform HMRC for VAT and tax registration
  • Ensure insurance compliance
119
Q

What should chartered surveyors be cautious of when it comes to client money?

A
  • Client accounts must be kept separately
  • The word client is on the bank account
  • Accurate record must be kept
  • Money can only be withdrawn if required
  • All firms handling clients money need to display their procedure documents on the website
120
Q

What is a locum?

A

A locum is effectively another professional who is appointed to ‘stand in’ for the surveyor if they are unable to work, e.g. in the event of an accident/illness, unforeseen circumstances, prolonged absence (e.g. holiday or a sabbatical) or death.

Typically, a locum will be another Chartered Surveyor, although they could also be aa solicitor or accountant by trade, i.e. a trusted professional.

APC (14 decks)

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