RICS Flashcards
What are RICS’ minimum professional indemnity insurance requirements?
If turnover (or forecast turnover for a new business) is :
* Up to £100,000 then a minimum of £250,000 PI is required.
* £100-200,000 a minimum of £500,000 PI.
* Over £200,000 a minimum of £1million PI.
What are the new PII requirements for 2022?
- Updated to reflect UK PII Version 9
- Introduced a change in the maximum uninsured excess
- Companies > £10m then no limit is set (turnover in preceding year)
- <£10m then greater of 2.5% of sum insured or £10k
What documentation does the RICS have on PII?
PII Requirements which came in to force April 2022 reflective of recent UK law changes
What are the general requirements regarding the PII set by RICS?
- Must be on an ““each and every”” claim basis
- Be fully retroactive
- Within minimum levels of cover
- Run off cover must be in place
- Cover past, present employees, directors & partners
You mentioned PI insurance, what is it and what is it for?
- Professional indemnity insurance and It protects clients against the advice from professionals
- If a firm faces a claim, it is protected from financial loss it cannot meet from its own resources
- Protect the insured member or firm against its liability to pay damages to third parties for breaches of professional duty that it commits through its professional activities; and
- Ensure that the firms’ clients do not suffer financial loss, which the firm cannot meet
What is the RICS Futures Report?
-2015 report highlighting key trends such as urbanisation, big data and climate crisis
- 2020 report found Construction produces 2nd largest amounts of data but estimated to waste 95%
- 2020 report found use of drones was producing compliance issues for surveyors. RICS developing methods to manage and train
What is the RICS Levitt Report?
Commissioned by RICS following Treasury management audit in 2018. Prior to audit, the RICS had extended overdraft facility by £3m due to inaccurate cashflow forecasting
- Audit found ““no assurance verdict”” on RICS internal financial control and Levitt Report commissioned as an independent review
- Conclusion of report found power struggle due to 2 board structure (Management & Executive)
What were the findings of the Levitt report?
- RICS Governing Council to have more oversight of internal dealings
- GC to be briefed by the Management Board as opposed to single CEO
- GC to oversee exec management bonuses
- Called for greater transparency
- No evidence of improper or illegal conduct
What are the aims highlighted in RICS Business Plan for 2021 - 22?
Incorporating Levitt recommendations:
- Being more open & transparent with members & public on operation of the institution
- Developing & implementing more effective internal whistleblowing arrangements
- Reviewing arrangements for senior executive reward
Financial priorities
- Continue to support profession as economies recover from Covid-19
- Minimise any increases in cost subscription levels
- Use any surplus cash to repay UK gov furlough scheme
Are you aware of any key updates to the RICS Leadership Team?
Following Levitt:
- Richard Collins is new Interim chief exec - ensuring public and market trust and confidence in profession
- Ann Gray - President
- Tina Paillet - Vice President
Why did the RoC change?
- Previous revision in place since 2007
- Research with Members, Firms and public were in favour of replacing and providing clarity for members
- Greater focus on clearer example behaviours and tackling climate change
What is your understanding of the changes to the RoC?
Overhauld the previous documents:
- Rules of conduct for members
- Rules of conduct for firms
- Global professional and ethical standards
Appendix A of the Rules of Conduct contains professional obligations
What are the professional groups?
Way RICS segments technical specialisms of the profession. Groups are now represented by the panels following Bichard review. 17 groups in to 6 panels
E.G:
- Valuation
- Quantity Surveying
- Dispute Resolution
- Building Surveying
What professional group panels are there within the RICS? (following Bichard review)
Following Bichard Review as of 2023 6 professional group panels:
- Construction
- Valuation
- Building surveying and building control
- Commercial Property
- Residential Property
- Land and natural resources
When you taken on a new client, what checks do you make?
Will need to undertake Customer Due Diligence (CDD) to identify the client and verify their identity
If the client is a politically exposed person (PEP), a PEP family member/business associate or from a high-risk third country then you should undertake Enhanced Due Diligence (EDD)
How many professional groups can a member of the RICS belong to?
A member is automatically attached to the professional group through which they qualified (e.g. building surveying) as part of the annual subscription, i.e. their primary professional group
To use an alternative designation of a specific professional group, the member must have achieved the relevant RICS qualification through that group
How do you undertake a conflict of interest check?
Identify parties and stakeholders. I would contact the project director who would use Arup’s own internal system with job numbers and cross check any conflicts of interest
What is RICS Matrics?
Established to support, develop and provide networking for its members, who are either entering or not long qualified in the surveying profession
Organises networking opportunities, charity events and CPD, as well as providing a voice for individuals new to the profession
How would you approach a conflict of interest?
Follow the guidance set out in the RICS Global Professional Statement on Conflicts of Interest, 2017:
1. Conflict avoidance - decide whether the conflict is manageable and whether proceeding is in the best interest of all parties
2. Written advice to both parties - disclose the nature of the conflict, explain how you will manage it and request written confirmation of informed consent
3. Conflict management - set up an information in accordance with provisions agreed with the clients
What is Lion Heart?
Charity funded through past and present RICS members
Provides support to members (past and present) and their families, including financial support, health and wellbeing packages and work-related support
What is the role of the professional groups?
The Professional Groups (17nr in total) reflect the specialist fields covered by chartered surveyors.
They have individual boards and a designated staff director.
The Professional Groups lead and advise on the development of practice standards (i.e. guidance notes) and technical competence, and represent RICS’ disciplines both worldwide supporting the Knowledge and Information Service and within world regions supporting the World Regional Boards.
What is an RICS guidance note? What is it’s status and it’s purpose?
Guidance notes are not mandatory, but are best practice. Their purpose is to allow RICS members to provide a consistent level of service, and in any claim of negligence against an RICS member it is likely to be considered whether the surveyor has acted in line with RICS guidance.
What is an RICS professional statement? What are the benefits?
RICS members must comply with professional statements to maintain the highest professional standards. Benefits include ensuring all RICS members are working to the same standards to deliver consistent services to clients, and that adhering to them is likely to be looked upon favourably in the courts if a dispute arises.
Why do you want to join the RICS?
The RICS is recognised as the global leader in promoting high quality surveyors, by joining this institution I would raise my status in the industry, improve my career prospects and instil clients trust in my ability.
