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APC Revision > RICS > Flashcards

RICS Flashcards

1
Q

What are the CPD requirements for members?

A

20 hours p/a including at least 10 hours of formal CPD

Undertake learning in relation to Professional and Ethical Standards once every 3 years

Record via the online portal on the website by 31 January

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2
Q

What are the requirements for CPD to be considered formal?

A
  • Has a formally structured programme
  • Develops knowledge or technical skills
  • Involves interaction with other professionals OR is assessed by a test/expert
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3
Q

What would count as informal CPD?

A
  • Private study
  • On-the-job training
  • Informal seminars/events
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4
Q

Describe the structure of the RICS

A

Privy Council - grants and awards royal charter - not an RICS body

Governing council - highest RICS body

Standards and Regulation Board, Management Board, Audit committee - required by charter

Nominations and Presidential Nominations Committees - discretionary

Management Board made up of Finance Committee, Regional Boards and Market Advisory Panels, Remuneration Comittee

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5
Q

How is the Governing Council structured?

A

Chair of Governing Council - Nicholas Maclean

RICS President - Clement Lau

President Elect - Ann Gray

Senior Vice President

6 Strategy Seats

15 Market Seats

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6
Q

What are the responsibilities of the Governing Council

A

Main governing body
Sets strategy
High level oversight of standards
Elected Body

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7
Q

What are the main responsibilities of the Management Board?

A

Delegated authority from Governing Council
Inform and oversee RICS affairs
Approved business plan

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8
Q

What are the main responsibilities of the Standards and Regulation Board?

A 
Overseeing standard setting and upholding
Global assurance 
Enforcement
Regulatory processes 
Entry into the profession
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9
Q

What are the main responsibilities of the Audit Committee?

A

Monitors integrity and effectiveness of financial reporting
Oversees internal control and risk management
Oversees external auditors

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10
Q

When are firms required to register for regulation by the RICS?

A
  • Provide surveying services to the public
  • Operate in the UK
  • At least 50% of the Principals are RICS members
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11
Q

When do firms become eligible to register for regulation by the RICS?

A
  • Provide surveying services to the public

- At least 25% of the Principals are RICS members or will be within a reasonable time

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12
Q

What are the requirements for registered firms?

A
  • Designate on business literature that they are regulated by the RICS
  • Have a Responsible Principal overseeing compliance
  • Comply with Rules of Conduct
  • Comply with Rules for Registration
  • Comply with Bye-Laws and Charter
  • Inform of any discplinary or regulatory decisions
  • Inform of findings of insolvency
  • Notify any material changes
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13
Q

Who can use the RICS logo ?

A

Members or Registered Firms

RICS Registered Firms can only be used by firms not members

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14
Q

What are some of the requirements around using the RICS logo?

A
  • Comply with relevant Rules
  • Do not alter the logo without permission
  • Do not use it in a way that could impact its status as a registered TM
  • Don’t use it in any way that could bring the profession into disrepute
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15
Q

What must registered firms do to ensure the public is aware they are regulated?

A
  • Essential for the public to be aware that a firm is registered
  • Display on letterhead
  • Website
  • Terms of engagement (standard text to be included)
  • Complaints handling procedure
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16
Q

When can firms use the designation “chartered surveyor(s)”?

A
  • Sole practitioners who are registered members
  • Companies with 50% or more directors as chartered members
  • Only use in the trading name and not the corporate name
  • Must be registered with the RICS if in UK
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17
Q

How long after the services have been delivered can a claim be made?

A

Limitation period for bringing a claim for breach of contract - 6 years or 12 years under a Deed.

Claims of negligence - 3 years post claimant learning of entitlement up to max 15 years

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18
Q

How long does the RICS recommend that documents are kept relating to professional services?

A

15 years in accordance with the statutory “long-stop” period for negligence claims

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19
Q

What is a liability cap?

A

A contractual agreement that the client can only claim damages up to a certain amount.

The RICS recommends the use of liability caps for regulated firms.

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20
Q

What should firms seek to agree with clients if third party reliance is permitted?

A
  • Specifically which third parties
  • Third party bound by Ts&Cs inc liability caps
  • Effective date remains the same and fresh advice not provided
  • No greater liability to a third party than the original client
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21
Q

What are the current PII requirements for firms?

A
  • Each and every claim or aggregate basis
  • Use the RICS’ minimum policy wording or better in contracts/TOEs
  • £100k turnover = £250k cover
  • £100-200k turnover = £500k
  • £200k+ = £1m
  • Uninsured excess does not exceed 2.5% of sum insured if under £10m turnover
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22
Q

What are the run-off cover requirements for PII?

A

In accordance with UK Professional Indemnity Insurance Requirements (April 2022), Version 9

Consumer claims - £1m for 6 years minimum

Non-consumer claims - appropriate cover for at least 6 years

RICS also has a run-off pool for firms unable to obtain insurance

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23
Q

Are you aware of some of the aims highlighted within the RICS Business Plan for 2021-22?

A

▪ Continue to support the profession as economies recover from Covid-19 and seek to minimise any increases in the cost of subscription levels.
▪ Utilise any surplus in cash generation to pay back furlough
monies received via the UK government’s Coronavirus Job Retention Scheme.
▪ Maintain and increase demand for RICS qualifications with a primary goal to ensure RICS qualifications remain relevant for future generations and that increased numbers of members use RICS to meet their knowledge and training needs.

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24
Q

What are the New Rules of Conduct?

A

▪ Rule 1. HONESTY AND INTEGRITY Members and firms must be honest, act with integrity and comply with their professional obligations, including obligations to RICS.
▪ Rule 2. COMPETENCE Members and firms must maintain their professional competence and ensure that services are provided by competent individuals who have the necessary expertise.
▪ Rule 3. SERVICE Members and firms must provide good-quality and diligent service.
▪ Rule 4. RESPECT Members and firms must treat others with respect and encourage diversity and inclusion.
▪ Rule 5. PUBLIC INTEREST Members and firms must act in the public interest, take responsibility for their actions and act to prevent harm and maintain public confidence in the profession.

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25
Q

Explain your understanding of Rule Number 1?

A

▪ Having reviewed the example behaviors in adhering to Rule 1 RICS
Members and firms should not allow themselves to be influenced
improperly through the acceptance of work referrals, gifts or hospitality.
▪ Members and Firms must also be sure to identify conflicts of interest and
not provide services or advice where these conflicts of interest occur.

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26
Q

Explain your understanding of Rule Number 2?

A

▪ Only act for clients where you have the necessary knowledge, skills and resources to
carry out the work competently.
▪ Supervise any employees or subcontractors undertaking work on their behalf, for example requesting that a Junior Surveyor undertakes a complex valuation due to resourcing issues would create problems in achieving compliance with this Rule. Instead an experienced and suitably qualified surveyor should be asked to undertake the valuation.

27
Q

What are the different types of conflicts of interest?

A
  • “Own interest”
  • “Party”
  • “Confidential Information”
28
Q

How do you identify conflicts of interest?

A

In accordance with the professional statement “Conflicts of Interest 1st Edition (2017)”:

  • Our firm has in place a procedure in keeping with the size and nature of its activities
  • Email circulated and responses requested within a certain time
  • Follow up with anyone who hasn’t responded directly
  • Keep a full record of any conflicts identified and the action taken
29
Q

When can informed consent be given by a client for identified conflicts of interest?

A
  • Where the best interests of all parties are served by proceeding with the instruction
  • Where the matter is not or doesnt have a realistic prospect of becoming contentious
  • All facts must be openly and transparently declared
  • All parties understand the risks, alternatives and potential consequences of proceeding
30
Q

What was included in your terms of engagement?

A
  • Identity of client
  • Person who will be leading project / contact
  • Summary of conflict of interest checks
  • The scope of the instruction
  • Detail around the deliverables
  • Fee
  • Timescales for delivery
  • Assumptions
  • Information provided by the client
  • Liability to third parties
31
Q

What is the reason for the RICS

A

PIE

  • Protection of consumer
  • Information - leading source
  • Education of members
32
Q

What is the purpose of the RICS?

A
  • Global professional, standards and regulatory authority
  • Promote, uphold and enforce the highest standards
  • Maintain public confidence in the profession
  • Develop members’ professional skills and knowledge
  • Delivering support to members
  • Expanding opportunities for members

One of the areas currently under review by Lord Bichard

33
Q

How do you become an FRICS?

A

Any MRICS can become FRICS although less than 5 years as MRICs may lead to longer assessment process

  • Application form
  • Professional statement (500 words)
  • 4 of 12 fellowship characteristics (500 words each)
  • Champion, Expert, Role Model, Influencer
34
Q

When would you decline an instruction?

A
  • No appropriate PII cover - e.g. pro bono work for friends
  • Terms of Engagement are not agreed by the client
  • Conflict of interest that cannot be resolved or mitigated
  • Not qualified or competent to complete the work - e.g. a red book valuation
35
Q

What is the complaints handling procedure for registered firms?

A

In accordance with guidance note, “Complaints handling 1st edition” (2016):

  • Stage 1 - complaint requested in writing. 7 days acknowledge. 28 days respond. Senior person in business to review
  • Stage 2 - referred to our ADR - Centre for Effective Dispute Resolution
  • May notify the PI insurers depending on the nature of the complaint
  • Register all complaints in the centralised log
  • Charles is designated complaints handler
36
Q

What do you need to do to set up an RICS-registered firm?

A
  1. Inform RICS
  2. Register with RICS regulatory board
  3. Appoint Responsible Principal
  4. RICS valuation Registration Scheme
  5. Complaints Handling Procedure, Officer and Log
  6. Clients’ money procedures
  7. PII
  8. Arrangements for succession
  9. Logo Kit
  10. CPD log and training
37
Q

What do you need to do to close down a firm?

A
  1. Inform RICS
  2. Inform clients
  3. Return clients’ money
  4. PII – 6 years runoff – minimum £1m
  5. Retain clients’ files – 6 years minimum
38
Q

What is on an EPC certificate?

A
  1. Address
  2. Floor area
  3. EPC ref number
  4. Technical info on energy performance
  5. Estimated running costs
  6. Energy performance rating from A+ to G
  7. Benchmarking information
39
Q

What is the minimum energy efficiency rating required to let a property?

A

Under the Minimum Energy Efficiency Standards (MEES) 2018: Currently E

Government currently consulting on proposals to raise this to C by 2030.

40
Q

What are the key principles of the Bribery Act 2010?

A

PRAT MR DC

  1. P – Proportionality
  2. RA – Risk Assessment
  3. T – Top level commitment
  4. MR – Monitoring and Review
  5. D – Due Diligence
  6. C – Communication
41
Q

What do firms need to do to abide by the Proceeds of Crime Act 2002, Money Laundering, Terrorist Financing and Transfer of Funds Regulations 2018 and RICS professional statement “Countering Money Laundering” 1st Edition

A
  • Have a Money Laundering Reporting Officer
  • Do not facilitate money laundering
  • Have appropriate checks and processes in place
  • Provide adequate training for staff
  • Report any suspicions to the NCA
  • Undertake periodic risk assessments relating to firm’s exposure to ML
  • Record and retain information about checks etc
42
Q

What are the penalties for breaching the MLR 2018?

A

Prosecuted under the Proceeds of Crime Act 2002:

  • Arranging / facilitating / concealing - 14 years max
  • Tipping off - 4 years
  • Failing to inform - 4 years
43
Q

What are the penalties for breaching an NDA?

A
  • Potential breach of employment contract - termination
  • Injunction
  • Damages

Does not apply to “protected disclosures” under the Public Interest Disclosure Act 1998 - criminal offences, damage to the environment, H&S breaches, etc

44
Q

What are the disciplinary procedures available to the RICS in case of a complaint or failure to comply with Rules?

A
  1. Investigation by Head of Regulation if deemed serious enough
  2. Either further investigation, fixed penalty or referral to Disciplinary Panel.
  3. 1 Fixed penalties include Regulatory Compliance Order - fine, costs, agreement to desist
  4. Referral to Single Member of Regulatory Panel or Disciplinary Panel - hearing
  5. 1 Fine, suspension, expulsion
  6. Appeals Panel
45
Q

Would you accept a cash payment?

A

No reason to in my current role so would most likely decline

Aware of AML Regulations and the requirement to register with HMRC if firm was to regularly accept cash payments over 10,000 EUR

If on behalf of a client, Client Money Handling (2019) can accept but:

  • Should be registered in cash book
  • Should provide Client with a receipt and retain the duplicate
  • Should pay in as soon as possible
46
Q

What are the different roles under the GDPR?

A

Data Controller - determines the purposes and means of processing personal data
Data Processor - processes personal data on behalf of a controller
Data Protection Officer - responsible for ensuring that the strategy and implementation of data protection requirements are in compliance with GDPR
Data Subject - person whose information it is

47
Q

Does GDPR still apply after UK has left the EU?

A

Yes - the legislation still applies to you if you offer goods, provide services or even just process the data of an EU citizen. It doesn’t matter if they are residing in the EU at the time or not.

Codified under the UK Data Protection Act 2018

48
Q

How do you comply with GDPR in your role?

A

Although an SME with under 250 people, we still have personal data about clients, leaseholders and employees. No requirement to keep a log but:

  • Encrypt all files and external storage where possible
  • Two-factor authentication for most systems
  • Delete tenant contact data - e.g. phone numbers, etc once an enfranchisement claim is settled
  • Understand the Data Subject Request procedure - 1 month
  • Understand Data Subject’s rights under GDPR
49
Q

What are the rights under the GDPR?

A 
The right to be informed
The right of access
The right to rectification
The right to erasure
The right to restrict processing
The right to data portability
The right to object
Rights in relation to automated decision making and profiling.
50
Q

What do you do in case of a data breach?

A

Report to the ICO within 72 hours

Where it risks the rights and of an individual, report to the Data Subject

51
Q

What are the protected characteristics under the Equality Act 2010?

A 
Age
Disability
Gender reassignment
Marriage and civil partnership
Race
Religion or belief
Sex
Sexual orientation
52
Q

What is diversity?

A

Having a range of different characteristics within a group of people.

These include protected characteristics (under the Equality Act 2010) and also things like skills, experiences, opinions, backgrounds, etc.

53
Q

What sustainable initiatives are you aware of that are implemented by the RICS?

A

• SKA ratings encouraging green codes of practice for commercial properties
• RICS has launched the Value the Planet campaign and committed to forming a
climate change expert panel to implement the UN’s sustainable development
goals.
• RICS has also launched a Responsible Business Report filled with solutions for
companies to operate in a greener capacity, regardless of the firm’s size. This
includes introducing higher recycling rates and reducing energy, transport and
water use where possible.

54
Q

What is the Levitt Report?

A

▪ The Levitt Report was commissioned by the RICS following a Treasury management audit in 2018.
▪ Prior to the Audit the RICS had to extend its overdraft facility by circa £3m due to inaccurate cashflow forecasting.
▪ The treasury management audit offered a ‘no assurance verdict’ on RICS internal financial control procedures and following this the Levitt report was commissioned as an independent review.
▪ Following the report, the RICS accepted each of Levitt’s recommendations including:
• The RICS Governing Council are to have more oversight over internal
dealings of the RICS.
• The RICS Governing Council are to be briefed by the Management
Board as opposed to a single CEO.
• The RICS Governing Council are to oversee executive management
bonuses.

Further review currently being undertaken by Lord Birchard

55
Q

Talk us through your understanding of the changes to the Rules of Conduct?

A

▪ The Rules of Conduct October 2021 Global Practice Statement will overhaul the previous separate documents:
• Rules of conduct for Members.
• Rules of Conduct for Firms.
• Global Professional and Ethical Standards.
• Appendix A of the Rules of Conduct now contains the professional
obligations of Members and Firms.

Key changes include to address challenges relating to sustainability, the use of data, and diversity and inclusion. Plus to streamline and simplify.

56
Q

Are you aware of some of the aims highlighted within the RICS
Business Plan for 2021-22?

A

▪ Continue to support the profession as economies recover from Covid-19 and seek to minimise any increases in the cost of subscription levels.
▪ Utilise any surplus in cash generation to pay back furlough
monies received via the UK government’s Coronavirus Job Retention Scheme.
▪ Maintain and increase demand for RICS qualifications with a primary goal to ensure RICS qualifications remain relevant for future generations and that increased numbers of members use RICS to meet their knowledge and training needs.

57
Q

What’s on the latest edition of Modus

A

Modus is now online only since June 2020 - recent articles include Grenfell 5 years on, Clement Lau’s column on the Jubilee and changes to hospital design

58
Q

What is the RICS Constitution?

A
  • Royal Charter - permits self-governance for RICS, issued by Crown / Privy Council, sets objective to provide a good standard of service for public
  • Byelaws - membership, designations, subs, conduct etc for members, firms - effective delegated legislation
  • Regulations - closely related to the byelaws. As a self-governing body, this sets out the regulations for this governance.
59
Q

How have you demonstrated good client care?

A
  • Being trustworthy and honest
  • Acting in a timely manner
  • Agreeing terms of engagement, clarity on scope and fees
  • Additional works - agree fee extension or new instruction
  • Communicated throughout and kept the client updated
  • Introduced client to other contacts in the industry to build their network
60
Q

What measures are the RICS putting in place to encourage diversity and inclusion?

A

Updated ROC to better reflect commitment to diversity and inclusion.
Inclusive Employer Quality Mark
Established a strategic oversight group to steer Diversity, Equity and Inclusion (DEI) initiatives

61
Q

What’s the definition of a bribe?

A

Providing a financial advantage to encourage someone to perform their functions or activities improperly?

62
Q

What’s the definition of money laundering

A

Attempting or succeeding in hiding the proceeds of crime through business transactions or currency transfers to legitimate sources

63
Q

What should you include in terms of engagement?

A
  • Our business name
  • Identity of the client
  • Lead person on project
  • Assumptions
  • Extent of investigations
  • Information required / relied upon
  • Third party liability
  • Scope
  • Fee
  • Limitations on liability
  • Terms of business
64
Q

What were the key recommendations from the Bichard Review?

A
  • A renewed and increased focus on the public interest remit of RICS, including amending the Royal Charter and creating a public interest panel to advise Governing Council
  • Greater independence for regulatory functions
  • Increased focus on Diversity and Inclusion across the profession and within RICS governance;
  • Empowering and enabling members through greater support for regional boards, alongside increased member engagement, with renewed focus on younger members;
  • Undertaking an independent review of RICS’ governance and effectiveness at delivering against its Charter for the public advantage once every five years.
  • A new simplified, clear, accountable governance structure
  • Showing greater leadership on the issues that matter most to society, such as sustainability and climate change

APC Revision (9 decks)

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