Mandatory Competancies

Question 1

What is the RICS

Answer 1

A professional body founded in 1868 of surveyors which regulates the activities of those professionals and aims to promote the highest ethical and professional standards in the industry.

Question 2

When was the RICS founded?

Answer 2

1868

Question 3

Who is the RICS president

Answer 3

Kathleen Fontana

Question 4

How many hours of CPD are required if you qualifty?

Answer 4

20 per annum - 50% must be formal

Question 5

What is formal CPD?

Answer 5

To be formal the training must have a structured programme, have learning objectives, assessed by an expert, involve interaction.

Question 6

Rules of conduct for members?

Answer 6

• CPD
• Information to the RICS
• Competency
• Cooperation
• Communication
• Ethical Behaviour
• Solvency
• Service

Question 7

What are the RICS rules for Firms

Answer 7

•	CPD
•	Information to the RICS
•	Competency 
•	Cooperation
•	Communication 
•	Ethical Behaviour 
•	Solvency 
•	Service
-	Use of designations
-	Advertising
-	Complaints handling
-	Clients money 
-	Indemnity 
-	Arrangements for the death of a sole practitioner

Question 8

What does the GDPR require you to do?

Answer 8

The General Data Protection Rules requires that you only keep data on third parties (tenants/ clients/ contractors) if you have a reason for doing so, if they request that you delete it then you do so, with certain types of sensitive info (passports etc..) you need to have a password protected folder.

Question 9

What goes into ToE – is it okay to agree these via email?

Answer 9

• The clients name
• The surveyors name and firm
• The agreed scope of work
• An agreed fee basis
• The firms complaint handling procedure
• Rules on AML checks
• Limitations on liability
• Signatures
• An agreed timescale

Question 10

What types of client accounting are there/ what do you have to do?

Answer 10

Either a Discretionary or General account, a general can have multiple clients but discretionary only one.

Question 11

Levels of PI required.

Answer 11

Firm’s turnover in the preceding year Minimum limit of indemnity

£100,000 or less = £250,000
£100,001 to £200,000 = £500,000
£200,001 and above = £1,000,000

Question 12

What is Runoff Cover

Answer 12

To ensure that firms, members and their clients are not exposed to financial detriment in
the period following a firm ceasing to trade, RICS requires firms to obtain fully retroactive
run-off cover.

Must be maintained for at least six years.

Question 13

How often are you required to do RICS ethics training?

Answer 13

Every three years

Question 14

What is a recent piece of CPD you did? What did you learn from it?

Answer 14

Formal CPD delivered on Health and Safety, updated my knowledge on managing contractors and instructing works proceedures.

Question 15

What is the purpose of ToE?

Answer 15

he purpose of an engagement letter is to set expectations on both sides of the agreement. An engagement letter is a less formal than a contract, but still a legally-binding document that can be used in a court of law.

Question 16

What are the rules on handling clients money?

Answer 16

ensure that clients’ money can be clearly linked to the clients to whom it belongs and is protected on their behalf at all times and in particular, in the following circumstances:
● insolvency
● death of a sole practitioner
● misappropriation by any party
● transfer of client money to another organisation.

Question 17

What would you do if you found out a clients money had been missapropriated?

Answer 17

Should clients’ money be misappropriated, the firm must inform RICS and, where appropriate, the Police and their insurers.

Question 18

What is your firms gifts policy?

Answer 18

Whenever a gift or hospitality is given or received, it must be:
1. for a genuine business purpose
2. given or received openly and transparently
in compliance with relevant laws
3. appropriate in a business setting
4. declined if deemed inappropriate or unreasonable; and
5. Properly authorised (where necessary).

The thresholds for acceptance are:
● Below £50 per person: do not need to be recorded (although the rules and considerations referred to above still need to be adhered to);
● Between £50.01 – £100 per person: must be recorded in the Bidwells LLP Gifts and Hospitality Register within one month of the activity/gift being given or received;
● Between £100.01 - £250 per person: must be pre-approved by the staff member’s line manager and recorded in the Gifts and Hospitality Register (as approved by a line manager). Equity Partners to be pre-approved by the Chief Operating Officer or the Chief Financial Officer.
● Above £250.01 per person: Must be pre-approved by the Chief Operating Officer or the Chief Financial Officer.

Question 19

What are the five RICS ethical and professional standards?

Answer 19

Act with Integrity
Always provide a high standard of service
Act in a way that promotes trust in the profession
Treat others with respect
Take responsibility

Question 20

Tell me a time when you have acted with integrity?

Answer 20

On a market appraisal of garden land near Oxford, a client asked me to change my assessment of the market value - I was open and honest about my assessment of the market value, showed him my basis of valuation and he agreed to accept it.

Question 21

Tell me a time when you have provided a high standard of service?

Answer 21

As per my case study example, I secured positive pre applicaiton advice, full planning permission and agreed a sale price which both parties were happy with.

Question 22

Tell me a time when you have taken responsibility?

Answer 22

A tenant made a complaint about our management of their property, I responded in an appropriate and professional manner and refered them to our complaints handling proceedure.

Question 23

Are you able to act for a client when there is a conflict of interest?

Answer 23

Typcially no, unless informed consent is agreed to by both clients.

Question 24

What is your firms lone working proceedures?

Answer 24

Dependant on the risk involved there is a risk assessment to fill in and have signed off by line manager.

If day to day, we have a whatsapp group where you can share your live location. Failing that you partner up with someone to check that you are back at a particualr time.

Keep callender up to date, share details of who you are meeting and where with your partner.

Take appropriate PPE, if that be a location device.

If too dangerous dont go alone.

Question 25

What is a balance sheet?

Answer 25

A balance sheet is a financial statement that reports a company’s assets, liabilities and shareholders’ equity. … The balance sheet is a snapshot, representing the state of a company’s finances (what it owns and owes) as of the date of publication.

Shows a snapshot of a firms conditions.

Assets – Liabilities = New Worth of the Firm

Question 26

What is a profit and loss? (income statement)

Answer 26

An income statement or profit and loss account is one of the financial statements of a company and shows the company’s revenues and expenses during a particular period. It indicates how the revenues are transformed into the net income or net profit.

Usually shows a period of a year

Shows whether money has been gained or lost during a period.

Question 27

What would you find on a cashflow?

Answer 27

Cash flow forecasting is the process of obtaining an estimate or forecast of a company’s future financial position; the cash flow forecast is typically based on anticipated payments and receivables.

Question 28

What is an RICS Practice Statement (PS) / Guidance Note

Answer 28

RICS Practice Statements are mandatory for RICS members and firms, guidance notes are good practice guides to be followed where possible.

Question 29

What are the three types of Conflicts?

Answer 29

Party Conflict
Own Interest Conflict
Confidential Information Conflict

Question 30

Tell me a time you have promoted trust in the profession?

Answer 30

In my daily professional and personal life I act in this way.

I ensure all dealing with clients is done to a high standard with the utmost integrity.

When speaking with other young professionals I inform them of the values upheld by the RICS and high ethical and professional standards.

Question 31

When does your CPD need to be submitted by?

Answer 31

31st January in each year (20 hours)

Question 32

What is included in a Risk Assessment?

Answer 32

A list of the likely risks to be incurred and its associated hazards.

Risk = likelihood x severity, high risk areas need additional measures to protect against those risks.

Question 33

Difference between a risk and a hazard?

Answer 33

Hazard is anything that could cause harm.

A risk is a factor of the likely hood of that hazard causeing harm and its relative severity.

Question 34

What is ISO 1401?

Answer 34

International Standardization Organisation, the 14001 standard defines criterial for an Environmental Management System which can be used by an organisation to improve reseource efficiency, reduce waste and costs.

Question 35

What is Bribery?

Answer 35

The offer, promise, giving, demanding or acceptance of an advantage as an inducement for an action that is illegal, unethical or a breach of trust.