Important Acts and Standards Flashcards
Professional Indemnity Insurance Requirements
2022
Minimum limit of indemnity where the Firm’s turnover in the preceding year is:
£100,000 or less = £250,000
£100,001 to £200,000 = £500,000
£200,001 and above = £1,000,000
Maximum level of uninsured excess (the part of each claim the firm must pay itself)
£500,000 or less = the greater of 2.5% of sum insured, or £10,000
Over £500,000 = 2.5% of sum insured
The minimum level of indemnity is higher for all RICS firms that conduct general insurance distribution work and are required to be registered
with the Financial Conduct Authority or RICS’ Designated Professional Body scheme.
Money Laundering, Terrorist Financing and Transfer of Funds Regulations
2017
Aims to stop criminals using professional services to launder money by requiring professionals to take a risk-based approach.
Firms must put measures in place to identify their clients and monitor how they use their services.
Anti Money Laundering Act
2018
Allows the British Government to demand, through enacting further regulations, that people engaging in relevant business to take applicable steps, including:
* Identifying and assessing risks relating to money laundering, terrorist financing, or other threats to the integrity of the international financial system.
* Having policies, controls, and procedures in place.
* Taking prescribed measures concerning their customers, for example, conducting due diligence in the form of identity and source of funds checks.
Lord Bichard Review
2022
The Bichard Review is an independent review of the RICS’ purpose, governance and strategy. It was commissioned by RICS Governing Council in December 2021 following the Levitt Review. 36 Recommendations released in June 2022
Improve technology
Reinvigorate RICS Matrix
Diversity and Inclusion Panel
RICS Business Plan
1 Trusted by our stakeholders and society
We aim to improve stakeholder trust and confidence in RICS.
2 RICS qualifications in demand
Our primary goal is to ensure RICS qualifications remain relevant for the next, more diverse generations and that increased numbers of members use RICS to meet their knowledge and/or training needs.
3 Influential thought leader
We wish to be the profession’s leadership voice on sustainability, data and technology, and diversity and inclusion.
4 Involved and engaged members
We want to increase member participation in our communities and increase engagement beyond renewal of professional subscription fees.
5 Sustainable 21st century professional body
We aim to improve our financial sustainability and enhance the transparency of our governance, while improving the overall satisfaction of members and the engagement of our people.
Bribery Act
2010
Primary anti-corruption law in the United Kingdom
A person is guilty of an offence if they offer, promise or give an advantage, directly or indirectly, to another person, intending that a person is rewarded for, or induced to, perform a relevant function or activity improperly.
Rules of Conduct (effective Feb 2022)
The Rules of Conduct are based on ethical principles of honesty, integrity, competence, service, respect and responsibility.
These apply globally, although they are designed to complement national legislation and legal requirements. The new Rules of Conduct have been effective since 2 February 2022. They replace the former RICS Rules of Conduct for firms and for members, and the five global professional and ethical standards
Levitt Review
2018/19
Independent Review was commissioned by RICS to investigate articles in the press that alleged that RICS ‘tried to supress a critical internal report into its finances in 2018/2019 and then unfairly dealt with those who sought to explore the issue - 18 specific recommendations on governance, executive remuneration, whistle blowing and legal advice.
RICS Futures Report
2020
Outline a number of areas the global professional body will focus on to ensure it continues to fulfil its mission to deliver confidence, act in the public interest, and support its professionals. Including adapting to technology, sustainability in key market areas.
Countering bribery and corruption, money laundering and terrorist financing
2019 - Professional Statement. Reissued in 2023 as a professional standard.
Money Laundering: Concealing the source of the proceeds of criminal activity to disguise their illegal origin.
PEP’s – Politically Exposed Persons - PEPs are considered high risk from a money laundering and corruption perspective because they hold positions of influence – indeed many jurisdictions specifically legislate for this.
3 Types of Due Diligence:
Customer DD – Collecting standard evidence to verify different types of clients
Simplified DD – A full CDD is not needed
Enhanced DD – More checking and monitoring required to complete the client profile
Handling Client Money
2019 - Professional Statement.
Regulations and guidance for holding client money, advice, and accounting controls
* client money is kept safe
* client money accounts are used for appropriate purposes only and
* RICS-regulated firms have the appropriate controls and procedures to safeguard client money.
Conflict of Interest
2019 - Professional Statement. Reissued in 2023 as a professional standard.
A conflict of interest arises in a situation where there may be an actual, perceived or potential risk that the professional judgement of an RICS-regulated firm or member will be compromised when undertaking an assignment.
* Party Conflict
* Own interest conflict
* Confidential information conflict
Information Barriers and Prior informed consent
Complaints Handling
2016 - Guidance Note
A Firm shall operate a complaints handling procedure and maintain a complaints log. The complaints handling procedure must include an Alternative Dispute Resolution (ADR) mechanism that is approved by the Regulatory Board.’
Health and Safety at Work Act
1974
Places a duty on employers to ensure that that health, safety and wellbeing of employees and other affected persons is not at risk, so far as is reasonably practicable. This includes providing and maintaining equipment, safe systems of work and safe premises.
