RICS APC ESSENTIAL Flashcards
What are the professional obligations for firms?
- Firms must publish a complaints handling procedure
- Firms must have adeuqate PII cover in place
- Firms must cooperate with RICS
- Firms must promptly provide all information reasonably requested by the SRB.
- Firms with a sole principal must make adequate arrangements in the event of injury, death, or absence.
- Firms must display their business literature in accordance with RICS policy’s
- Firms must report to RICS any matter that they are required to report under the rules of the registration of firms.
What are the professional obligations of members?
- To complete 20 hours of CPD per year.
- Members must cooperate with RICS
- Members must promptly provide all information reasonably requested by the SRB.
What are the new rules of conduct?
- Members and firms must be honest, act with integrity, and comply with their professional obligations and the obligations of RICS.
- Members and firms must maintain their professional competence and ensure any services are provided by individuals with the necessary competency.
- Members and firms must provide a good quality and diligent service
- Members and firms must treat others with respect and encourage diversity and inclusion.
- Members and firms must act in the public interest, prevent harm, take responsibility for their actions, and maintain public confidence in the profession.
Why did the rules changes?
- To provide a clearer and more concise structure.
- there is also a greater focus on clearer example behaviours and understanding evolving technology and sustainability measures.
Rule #1 - is all about integrity, therefore what are you dealing with most?
- Is effectively dealing with bribery requests.
- Protecting yourself where you may not be covered by the Bribery Act.
- Handling conflicts
- Handling client money.
Rule #2 - Competency.
Ensuring that myself as an individual is competent enough to carry out the service and scope of works. But, also ensuring that a business or contractor I’ve instructed who will be acting on behalf of the client is competent to the necessary expertise.
What is a Locum?
Something a firm puts in place if they are a sole practitioner or director that has a process in place in the case of death or illness or a requirement to step down.
What are RICs firms PII Requirements?
- The policy cover must me made on an each and every claim basis.
- RICS sets out the minimum levels of indemnity.
- RICS sets out the maximum levels of uninsured excess.
- The policy should include cover for past and present employees.
What are the minimum levels of indemnity?
- If a firms turnover is £100k or less then = £250k
- If a firms turnover is £100-£200k then = £500k
- If a firms turnover is £200k or above then = £1,000,000
What are the maximum levels of uninsured excess?
If the limit of indemnity is £500k or less then = the greater of 2.5% or £10,000
If the limit of indemnity is over £500k then = 2.5% of the insured sum.
What are the limitation periods for PII?
- 6 years when executed under hand
- 12 years when executed as a deed.
What is the purpose of PII?
To provide financial cover in the event that a client suffers financial loss as a result of a breach of professional duty.
Can you tell me about the Merrit vs Babb Case law?
Yes, the case dates back to 2001 and highlights the importance of having run-off cover in place.
- A surveyor was sued for negligence by a former client but the surveying firm was no longer in existence so the surveyor was pursued for damages. They were successful.
What procedures should be in place when handling clients money?
As a RICS regulated firm, I should;
- set clear boundaries of duties for employees.
- Have a principal that oversee the client money accounting functions.
- These principles are not allowed to override controls.
- All accounting systems and data must be secure and kept confidential where necessary.
- All client money must be kept separate and clearly identifiable with the word “client” included in the bank account name.
- Clients must always have access to funds.
- The account must not be overdrawn.
What is the client money protection scheme?
- It is a scheme operated by RICS that contains provisions for members of the public to be reimbursed if they lose funds when using a RICS regulated firm.
