Hot Topics

Question 1

Please explain your understanding of the recent updates to RICS
Professional Indemnity Insurance Cover around Fire Safety?

Answer 1

In 2019, fire safety insurance was removed from professional indemnity insurance after the Grenfell disaster due to an increase in claims and blanket fire safety exclusions. Surveying firms struggled to obtain coverage, leaving them exposed for past and future work.

In 2020/21, the RICS worked with insurers to limit blanket fire safety exclusions. In May 2021, RICS and insurers agreed exclusions could be used, but not for properties with four or fewer storeys. This agreement is required for insurers participating in the RICS insurance market.

RICS policy excludes coverage for completing EWS1 forms. Limited protection is available for professionals conducting EWS1 assessments, depending on insurers’ discretion.

Question 2

Please explain your understanding of the RICS Inclusive
Employer Quality Mark?

Answer 2

The scheme requires employers to pledge their commitment to adopting and continually
improving against the following six principles:
o Leadership and Vision.
o Recruitment.
o Staff development.
o Staff retention.
o Staff engagement.
o Continuous improvement.

Question 3

What were the main recommendations from the Birchard Review?

Answer 3

The review recommended 36 changes, including:

• Separating commercial activities and placing them under the leadership of an experienced executive reporting to the Commercial Committee.
• Strengthening younger members’ voices by allowing an elected representative from the RICS Matrics community to sit on the Governing Council.
• Establishing a Diversity and Inclusion Panel to advise the RICS Board and Standards and Regulation Board.
• Enhancing technology within RICS.
  Creating a Public Interest Panel to advise the Governing Council.

Question 4

What is the RICS doing to improve Diversity & Inclusion?

Answer 4

The McGregor-Smith Review – aiming to develop black and ethnic minority talent within the profession

Question 5

Please explain your understanding of how the RICS define
Professional Standards vs. Practice Information?

Answer 5

In response to the Birchard Review, RICS introduced two new definitions for professional guidance: Professional Standards and Practice Information.

Professional Standards: These set out mandatory requirements or best practices for RICS members and regulated firms. Surveyors must follow the rules when “must” is used, and best practices when “should” is used.

Practice Information: This provides non-mandatory advice for delivering specific services or working in certain practice areas. It includes processes, toolkits, checklists, research, and technical advice.

Question 6

Please explain your understanding of the guidelines around use of
the RICS Logo?

Answer 6

Question 7

Are you aware of the changes the RICS recently made around its
use of Membership Cards?

Answer 7

Now digital membership card.

Question 8

What is IPMS All Buildings?

Answer 8

IPMS All Buildings was introduced in January 2023 and now supersedes all previous standards and applies to all buildings irrespective of their use or sector class.

Question 9

What are the classifications of IPMS All Buildings?

Answer 9

PMS 1 – External Measurements for Whole or Part of a Building.
IPMS 2 – Internal Measurements for Whole or Part of a Building.
IPMS 3.1 – External Measurements for Exclusive Occupation.
IPMS 3.2 – Internal Measurements for Exclusive Occupation.
IPMS 4.1 – Internal Measurements for Selected Areas including
Internal Walls and Columns.
IPMS 4.2 - Internal Measurements for Selected Areas excluding
Internal Walls and Columns.

Question 10

Please explain your understanding of the rotation rules for
valuation contained within the RICS Red Book UK Supplement?

Answer 10

The new rules mean that firms undertaking valuations for regulation purposes will not be able to repeat this service for more than ten consecutive years.

This will require a change or rotation to an alternative valuation firm with the aim of improving transparency and serving the public interest.

Question 11

Following the Grenfell Disaster are you aware of any guidance the
RICS has published to support fire safety?

Answer 11

I am aware that the RICS has published the Guidance note ‘Cladding for Surveyors 1st Edition March 2021’ to support surveyors working on Multi-storey and multi occupancy residential buildings.

The document aims to improve surveyors knowledge of external wall cladding systems that may be considered within the External Wall Fire Review.

Question 12

What is ACM cladding?

Answer 12

ACM standards for aluminum composite material

Question 13

What is an EWS1

Answer 13

A certificate to demonstrate that the building is MORTGAGABLE as opposed to fire safe.

Question 14

Are you aware of some of the aims highlighted within the RICS
Business Plan for 2024?

Answer 14

Levitt Report Recommendations:

RICS will be more open and transparent about operations, decisions, and finances.
Implement new, effective internal whistle blowing arrangements.
Review senior executive reward structures.

Immediate Financial Priorities:

Support the profession during economic recovery and minimise subscription cost increases.
Use surplus funds to repay furlough money received from the UK government’s Job Retention Scheme.
Reduce reliance on external financial support.
Decrease the funding deficit in the closed Final Salary Pension Scheme.

Corporate Objectives:

Maintain and grow demand for RICS qualifications to ensure their relevance for future generations.
Foster member involvement and engagement, increasing participation in RICS communities.
Establish RICS as a sustainable, transparent, and financially sound professional body, enhancing member satisfaction and engagement.

Question 15

What are the Professional Obligations of Firms

Answer 15

Complaints procedure, approved ADR, complaints log.
Adequate professional indemnity insurance.
Continuity plans for sole principals.
Cooperate with RICS.
Promptly Provide information as requested.
Display RICS regulation designation.
Report matters per firm rules.

Question 16

What restrictions are the on the use of drones in your role?

Answer 16

If your drone is under 250g then there are some variations to some of the rules. If your drone has a camera then you must register as an operator but you do not have to complete the flyer ID test (although we strongly recommend that you do).

If you’re flying a drone or model aircraft that’s lighter than 250g, you can fly closer to people than 50m and you can fly over them, but you must not fly over crowds.

When you’re thinking about how close you can fly, remember, you must never put people in danger. Even small drones and model aircraft could injure people if you don’t fly them safely. You must also follow all the other rules for drone flying.

Question 17

Please explain your understanding of the RICS Discounted Cash
Flow Valuations Guidance Note November 2023?

Answer 17

The guidance note calls for the use of market based inputs when making an assessment of market value using the Discounted Cash Flow method rather than inputs that relate to Investment Value.