RICS Flashcards
Who are the current RICS officials?
(President, President Elect, CEO, Senior Vice President)
President - Tina Paillet
President Elect - Justin Sullivan
CEO - Justin Young
Senior Vice President - Nick Maclean
What is the RICS Motto
There is measure in all things
What year was the RICS Founded
1868
What is the structure of the RICS
Privy Council sits at the top
Followed by the Governing Council below
Tribunals, Boards and Committees sit below (Regulatory Tribunal, Regulation Board, Management Board, Audit Committee)
What is the role of the Governing Council
They set the Global Strategy
They ensure the RICS complies with Royal Charter requirements
What is the Royal Charter
It was granted in 1881 by the Monarchy
To promote the use of the profession to the public
Bichard Review
What is it & what are its outcomes
An independent review commissioned by the RICS Governing Board
It was commissioned following the Levitt Review and aimed to create a new sense of purpose and direction of the RICS
The review advised 36 recommendations. Some are
- Commercial activity will be separated from other RICS activities
- RICS Matrics should give younger members a stronger voice and a young member seat created on the Governing Council
- A D&I and Sustainability Panel will be set up
What RICS initiatives are you aware of?
Lion heart - is the charity for RICS professionals, past and present, and their families
What RICS Memberships are there
Trainee (BSC)
Chartered Member
Associate
Fellow
Where do the Bye Laws sit?
There are 10 Bye Laws which sit under the Royal Charter
The 10 regulations sit under the Bye Laws
What do Bye Law and Regulation 5 relate to
The Rules of Conduct for firms and members
What are the 5 Rules of Conduct
They came into effect on 2nd Feb 2022
1. They must be honest, act with integrity and comply with professional obligations including obligations to RICS
2. They must maintain their professional competence and ensure services are provided by competent individuals
3. They must provide good quality and diligent service
4. They must treat others with respect and encourage diversity & inclusion
5. They must act in the public’s interest, take responsibility for actions and act to prevent harm and maintain public confidence in the profession
Explain your understanding of Rule Number 1
They should not allowa themselves to be influenced through gifts and hospitality
Identify conflicts of interest
Explain your understanding of Rule Number 2
They should only act for clients where they have the necessary skills and resources to carry out the work competently
Explain your understanding of Rule Number 3
They should understand the client’s requirements and agree scope of services prior to signing up to formal terms of engagement
Explain your understanding of Rule Number 4
Treat all fairly and elimate discrimination against protected characteristics
Firms should have anti-bullying and harassment policies in place
Explain your understanding of Rule Number 5
They must question practices and decisions
Process complaints promptly and professionally
What are the RICS’ 5 principles of better regulation
PACTT
Proportionality.
Accountability.
Consistency.
Targeting.
Transparency.
What is the RICS Ethical Decision Tree
Flow chart by RICS to help decide if something is ethical or unethical, to make decisions
e.g. is it legal and is it in line with the Rules of Conduct
What are the professional obligations of members
- 20 hours CPD per year, with 10 hours being formal (Can use the CPD decision tree to decide)
- Must cooperate with RICS
- Provide info which has been requested by the Standards and Regulation Board
What are the professional obligations of firms
- Produce complaints handling procedure
- Have adequate PII for previous and current work
- Sole principals must have arrangments in event of inability to work
- Cooperate with RICS
- Must provide requested information by the Standards and Regulation Board
- Must display on buisness literature that they are RICS Regulated
- Must report to the RICS any matter they are required to under the Rules for Registration of Firms
What do you do if you see a member working outside the RICS code of conduct?
Confirm the facts, provide a polite reminder, report to the RICS if behaviour continues
What do the RICS do when they receive an allegation against a member?
Inform the member and allow them 28 days to respond
After an investigation, what action can the RICS take
- Fixed penalty (Fine)
- Consent Order (Written Agreement which has been reached about breach & amendments to make)
- Disciplinary Panel (Public panel)
What is a consent order
Take a certain action or desist from taking a certain action
Pay a fine (up to £2,000 per breach)
Pay RICS’ costs
Levitt Report
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 by £3m due to inaccurate cashflow forecasting
Levitt concluded that there was an internal power struggle due to its 2 board structure (Management Board & Executive Board)
Recommendations
The Governing Council are to have more oversight over internal dealings
The Governing Council are to oversee execs bonuses
Greater Transparency
What is ethics, and how is it different to duty of care
Conforming to accepted moral standards
Duty of care is a legal requirement
Why do you want to join the RICS
To be respected as RICS. I would be very proud to be part of an esteemed organisation. They also have CPD,Careers and networking support.
If you become chartered how will you become involved?
I aim to attend RICS events and become a Supervisor/Counsellor and continue to promote the profession as per the RICS Rules of Conduct
How would you become an Assessor
Assessor training and 3 years post MRICS
What is a black book and provide an example
Guidance notes produced by the RICS, which illustrates best practice and technical guidance
Fave is interim valuations and payment as I refer to this when completing valuations
What are the types of documents that RICS provide
Professional Statement (Mandatory)
Code of Practice (Mandatory or Good Practice)
Guidance Note (Best Practice)
RICS Information Paper (Information or Good Practice)
What articles do you read and what have you read
- RLB - sends wins & opps and updates on intranet, Quarterly TPI updates, monthly business update
- RICS update, building magazine, the B1M videos
- Have specific articles in mind
What to do for retirement
- Inform the RICS
- Inform your clients asap and make sure you have no outstanding appointments
- Ensure that all work is to be covered by another competant individual
- Have run off cover in place (Merit v Babb highlights the importance of this)
What limitation periods (for negligence) are associated with underhand and deed forms of contract
- 6 years for underhand
- 12 years when executed as a deed
What procedures must be followed when opening a new firm
- Contact the RICS for guidance
- Inform the RICS and register for regulation
- Appoint a contact officer for RICS communication
- Prepare a CHP
- Obtain PII
What insurances are required for starting a firm
- PII
- Employers liability
- Public liability
- Building insurance for offices
What information will an RICS regulated share annually
- Type of business
- Staffing
- Nature of clients
- Training
- CHP and records
- PI details
- Whether they hold client money
What must a Complaints Handling Procedure (CHP) include
RICS provides a model form
1. Names and contact info of nominated investigating person
2. Complain must be investigated within 28 days
3. Complaints, progress and outcomes must be recorded
4. PI insurers need to be identified of a complaint immediately
5. The process must have 2 stages
a. Complaint to be considered by senior firm member or CH officer
b. If the issue isn’t resolved, it needs to go to an independent third party to award redress
What makes an effective complaints handling procedure and who should the procedure be shared with
It should be shared with staff, clients and professional indemnity insurers
It should be compliant with the RICS requirements and Professional Indemnity Insurers
It should be regularly reviewed to ensure that it remains compliant
What is an independent redress scheme
A consumer scheme to handle small issues out of court
The firm must specify what redress scheme they want - ombudsmen, arbirtation, adjudication
1. The judges decision is binding
2. If it’s in favour of the firm, the complaint can be taken to court
