Main Docs Flashcards
RICS Valuation - Global Standards, 2021
Professional Standard
Published Nov 2021
Effective Jan 2022
Effective Jan 2025
RICS Code of Conduct, 2021
Professional Standard
Published Oct 2021
Effective Feb 2022
RICS Global Professional Standard: Conflict of interest, 2017
Effective Jan 2018
References:
-Informed consent
-Members mustn’t advise clients when conflicts are present unless all parties have provided informed consent
RICS Professional Standard: Client Money Handling, 2019
+ 6 main areas of good practice
Holding client Money
Providing information to clients
Receipts of clients
Accounting records
Payments from clients
Compliance
Bribery Act 2010 + six principles
Applies to all UK businesses - aims to prevent bribery using the UK and Abroad.
Bribes - giving, offering, promising or receiving of an advantage such as payment or gift for an action which is illegal.
-Proportionality
-Top level commitment
-Risk Assessment
-Due diligence
-Communication
-Monitoring and review
Terrorist Financing and and transfer of Funds Regulations, 2017 + DD checks
When proceeds of criminal activities are disguised then realised as legitimate assets
Typically do Customer Due Diligence checks… occasionally do enhanced Due Diligence checks for politically exposed people (PEP) which require further examination of background and purpose behind transaction
When considering accepting cash, gifts and hospitality consider…
Bribery Act 2010
RICS Professional standards
Organisations procedure
Transparency
Proportionality
Tax
When considering anti money laundering…
Money Laundering, terrorist Financing and transfer of funds Regulations, 2017
RICS Professional Standard
Due Diligence procedures
Red flags (not providing identity docs, parties changing, unusual transaction and exchange in unusual currency)
RICS Professional Standard: Countering bribery, corruption, money laundering and terrorist financing, 2019
Mandatory global requirements for RICS Members and firms in regards to bribes, corruption, money laundering and terrorist financing
RICS Professional Standard: Surveying Safely, Health and Safety principles for property professionals, Second edition, 2018
Effective Feb 2019
Sets out basic, good practice principles for the management of health and safety for RICS regulated firms and members
Outlines
-Personal responsibility for members and firms;
-Assessing hazards and risks;
-Workplace health and safety;
-Visiting sites
Key areas-
-Competent staff;
-PPE;
-Safe working environment;
-Safe person concept.
Health and Safety at Work, 1974
Focuses on an employers duty to ensure to the best of their ability the health, safety and welfare of employees at work
Policed by Health and Safety Executive
Types of Health and Safety measures
Display Screen Equipment
PPE
Manual Handling Operations
Workplace Health, Safety and Welfare
Data Protection Act, 2018 + General Data Protection Regulation (GDPR)
Utilised the GDPR regs from the former EU doc and inputted into the Data Protection Act 2018.
It aims to create a single data protection regime affecting businesses and individuals to ensure they take control of how their data is used.
Equality Act, 2010
The Red Book UK National Supplement, 2023
Sets out specific requirements for members on the Reb Book Global Standards undertaken subject to the UK.
Introduced following independent review from Pereira Grey.
Same Layout as red book but VPGA’s are 1-17
VPGA1 - Financial reporting (Fair Value)
VPGA10 - Secured Lending (incorporates new ESG principles)
What to do in a data breach?
-Contact firms Data Protection Officer (Data controller)
-Must be reported to the Information Commissioner Office within 72 hours of breach
-Failure to do so can lead to fines up to 17.5 million or 4% of global turnover
Diversity, Equity and Inclusion, 2024
Provides clear definitions of DEI
Provides advice to firms and individuals on how they could change their format (recruitment bias, staff training…)
RICS Professional Standard: Sustainability and ESG Guidance in Commercial Property Valuation and Strategic Advice, 2021
RICS Professional Standard: Environmental risks and global real estate, 2018
Minimum Energy Efficiency Standards, 2015
RICS Professional Standard:RICS Property Measurement (2nd Edition), 2018
Professional Standard as of June 2024
Incorporates aspects of the IPMS suite of guidance. With IPMS on offices and resi being applied under professional standard from that point onwards
Following IPMS: All Buildings, this document is in the process of being updated
RICS Code of Measuring Practice, 2015
Still a best practice document for all measurement exercises (except office and resi)
RICS Practice Information: DCF valuations, November 2023
Growth explicit investment method of valuation. Form of income approach. Aims to establish a value by examining its projected cash flow, followed by discounting the cash flow to arrive at an estimated current value.
-Estimate the cash flow
-Estimate the Exit value at the end of holding
-Select a discount rate
-Discount the cash flow selected rate
-Value in the sum of completed discounted cash flow to get the NPV
Profits methods
- Annual turnover - Purcahsers costs = Gross Profit
- Minus reasonable operating expenses = unadjusted net profit
- Minus operators remuneration = Adjusted net profit (Fair Maintainable Value Operating Profit)
4.Capitalise at an appropriate yield to acquire MV
5.Cross check
RICS Valuation - Global Standards, 2021 Layout
PS1 - Compliance with standards
PS2 - Ethics, competence, objectivity and disclosure
VPS1 - TofE
VPS2 - Inspection and Investigation
VPS3 - Valuation Reports
VPS4 - Bases of Value
VPS5 - Approaches and Methods
VPGA 1-10
VPGA 1 - Valuation for inclusion in final accounts (Fair Value)
VPGA 2 - Valuation for Secured Lending
VPGA 8 - Valuation of Real Property Interests (Specific ESG mention)
VPGA 10 - Matters that may give rise to material valuation uncertainty (market explanation notes - big during Covid)
International Valuation Standards 2017 - provides further guidance on valuation and TofE
