Randoms Flashcards
Upcoming changes to the RICS governance structure? - as a result of the Bichard Review 2022
(4)
- The governing council is to be advised by a ‘public interest panel’ as a result of the Bichard Review 2022
- Establishing the ‘knowledge and practice committee’ (reports to the RICS Board). Aim = to develop and improve knowledge and professional practice of surveyors.
- Introduction of Professional Group Panels (6 related to difference service lines e.g. commercial) which enables a great role and voice for each discipline –> report into the knowledge and practice committee.
- Merging the Remuneration Committee and the Nominations Committee to make the ‘Nominations and Remuneration Committee’.
What is the purpose of PII?
To protect against professional negligence claims
How is PII calculated?
Minimum amount outlined by the RICS - must be given by an approved insurance provider:
Min limit based on turnover:
£100k or less = £250k
£100-200k = £500k
£200k+ = £1mil
Firms normally have more than the minimum to protect them against big jobs
What is the difference between PII and Public Liability Insurance?
PII is professional indemnity insurance to protect against claims of negligence from a client in professional work carried out.
Public liability insurance protects against claims arising from interactions with members of the public.
Who sets a liability cap and is it negotiable?
- C&W set it (usually a multiple of the fee charged) (for vals it is higher - lesser of £25mil or 25% of MV)
- Try to charge a higher fee when a client wants a higher cap.
- Have to seek approval for higher cap via the BTR and they may/may not grant approval (and may put some conditions on the grant)
What is an accrual?
Recorded as a liability on a balance sheet - an expense that has been incurred by a business but not yet paid for (e.g. you have good from a supplier but are yet to be invoiced for them)
Rule 1 and example
Members and firms must act with honest and integrity and comply with their personal obligations, including their obligations to the RICS.
e.g. I was undertaking a valuation and the client put pressure on me to increase the value. They provided no extra evidence that could support this so I maintained integrity and reported my opinion of value.
Rule 2 and example
Members and firms must maintain professional competence and ensure services are provided by a competent individual with the necessary expertise.
e.g. When undertaking valuation work I ensure that my work is always peer reviewed and signed off by two registered valuers.
If I suspect there are structural issues with a property I inspect I will recommend they consult a specialist/building surveyor as it is not within my area of competence
Rule 3 and example
Members and firms must provide a good-quality and diligent service
e.g. providing good client care/channels of communication in agency
Rule 4 and example
Members and firms must treat others with respect and encourage diversity and inclusion
e.g. outreach groups going to talk about surveying in schools
C&W allows people from other religions to swap bank holidays like xmas with ones that are important for their religion
Rule 5 and example
Members and firms must act in the public interest, take responsilibity for their actions, act to prevent harm and promote trust in the profession.
e.g. reporting a data breach to the ICO (or just complying with DPA’18 to prevent harm)
what is the purpose of a liability cap?
It is a contract that prevents clients being able to claim the full PII that CW may have
Max uninsured excess amounts
Turnover less than £10mil = lesser of 2.5% of sum insured of £10,000
(done to prevent small firms getting lower pii policy due to a high uninsured excess they cannot pay)
More than £10 mil = no limit
What is the Bribery Act 2010
The act is in place to prevent bribery and corruption. To ensure that businesses conduct their work fairly and transparently.
What are the 6 principles of the Bribery Act?
- Top level commitment
- Due diligence
- High level risk assessment
- Proportionality (procedures should be proportional to risks)
- Communication
- Monitoring and Review
Limitation Act 1980 - What are the current limitation periods for negligence?
Contract = 6 years from date of negligent act. Section 14a provides a 3 year period from knowledge of damage (15yr longstop)
Tort = 6 years from the date the claimant suffered loss.
Difference between tort and contract?
Contract = when 2 parties enter into an agreement and one person doesn’t do their obligations
Tort = when one party commits a wrong against another (societal duty)
