Registration of Firms and Client Money Handling Flashcards
How would you close down a regulated firm?
- Informs clients of closure
- Inform insurers and procure PII run-off cover for minimum 6 years
- Inform RICS of closure
- Retain client files on record for 6 years
- Return monies by clients
What are the current RICS rules for registration of firms?
- Interpretation
- Communication
- Firms required to register
- Firms eligible to register
- Registration of practice divisions
- Procedure for registration
- Responsible principle
- Obligations of registration
- Deregistration
- Review and appeal
- Limits on applications for registration and readmission
- Publication
- Fees
When did these last change?
Version 8 Effective 2 February 2022
What were the key changes?
Registration eligibility criteria are amended so firms have to have at least 25% of RICS qualified Principal, instead of 50%
Who is a ‘qualified member’?
- FRICS - fellowship recognises individual achievement as a professional member of RICS
- MRICS - demonstrated to colleagues, clients, peers that you have a chartered qualification and work to highest industry standard and have passed APC
- AssocRICS - respected qualification that demonstrates commercial / technical standards and professional ethics. Qualified, regulated, trusted
What is a phoenix firm?
Firms which close in a disorderly way and then rapidly re-establish themselves as a new trading entity
When must a firm register for regulation?
- The firm provides surveying services to the public
- The firm is operating in Regulated Area A
- At least 50% of the firm’s Principals are RICS members
What are the registration eligibility criteria?
- The firm provides surveying services to the public AND
- at least 25% of the firm’s Principals are RICS members
Or: - The Head of Regulation is satisfied that the firm is implementing an appropriate plan to secure compliance with the above within a reasonable period of time, or
- The Head of Regulation is satisfied that the firm is appropriately supported and supervised by another RICS regulated firm of firms that fulfil the above
Who is a Responsible Principal?
Every firm must nominate a ‘responsible principal’ who is obliged to ensure all reasonable steps are taken to ensure and systems are in place to ensure compliance with regulatory and RICS requirements, including to report to RICS as required
What happens if a firm cannot comply with the eligibility criteria?
A Regulated Division that has been granted registration for regulation by RICS shall inform Head of Regulation if a firm:
* Dishonesty, fraud, disciplinary, professional, regulatory court
* Adverse serious misconduct which results in them being expelled
* Other matter likely to cause harm to firm or the RICS’ reputation
Head of Regulation can exercise powers if:
* Firm would no longer be able to register
* Firm has contravened the rules of being registered firm
Head of Regulation can:
* Take no action
* Add conditions to registration
* Deregister the firm
* Suspend the firm from registration
What are the rules around use of the RICS logo and ‘Regulated by RICS’ designation?
- New rules came into effect in April 2020
- A restriction to the use of the designation ‘Chartered Surveyors’ by firms to the trading name only
- Only RICS members and registered firm scan use the logo
- There will be a requirement that regulated firms must include a prescribed text in terms of engagement to explain what being regulated by RICS means
Tell me about the restrictions to the use of the designation ‘Chartered Surveyors’ by firms.
Chartered surveyor designation:
* Used by sole practitioner who is chartered member
* Company carrying out surveying services if 50% or more of partners are chartered members providing that:
◦ No partner or director expelled
◦ Agreement that surveying carried on in accordance with RoC
◦ Names of partners stated on all comms where designation used on conjunction with partnerships trading name
◦ Corporate name not to include Chartered Surveyors
◦ Chartered partner uses appropriate designatory initials when conducts business
What must be included in the ToE relating to firm regulation?
- Information about Firms’ regulatory status must be included
- Firm not authorities by FCA but included on register maintained by Financial Conduct Authority so that insurance distribution activity broadly advising selling administration of insurance contracts
- Arrangements or complaints regulated by RICS
What RICS guidance relates to handling client money?
RICS Professional Statement - Client Money Handling 1st Edition October 2019
When was CMH last updated?
Effective from 1 January 2020
