RICS Requirements Flashcards
What is the current RICS Governance Structure?
RICS is currently governed, under the terms of the Royal Charter, by various internal councils and boards, including:
- Governing Council - provides management and strategic direction
- The Standards and Regulation Board and Management Board report to the Governing Council
- 17 specialist professional groups covering property, land, and construction.
Current CEO is Justin Young.
Current President is Tina Paillet.
What is the role of the RICS?
- To maintain the highest standards of education and training.
- To protect consumers through strict regulation of professional standards.
- To be the leading source of information and independent advice on land, property, construction and associated environmental issues.
What is the purpose of the Bichard Review and what some of the recommendations it highlights?
Following the Independent Review of internal governance failings within the RICS carried out by Alison Levitt QC in 2021, RICS commissioned Lord Bichard to undertake a further review to:
‘Clarify the purpose of RICS, including its responsibility to act in the public advantage; make recommendations on its governing structure to deliver that purpose; and provide proposals for the incoming leadership and governing body on the future culture and strategy of the Institution.’
The Bichard Review reported in June 2022, making 36 recommendations in 7 key areas, including:
1. Renewed & increased focus on the public interest.
2. Maintaining self-regulation, through greater independence for regulatory functions.
3. Increased focus on diversity and inclusion across the profession and RICS
4. Empowering and enabling members to through greater support
5. Undertake an independent review of RICS governance once every 5 years.
6. New simplified, clear, accountable governance structure.
7. Showing greater leadership on issues that matter to society, e.g., climate change
What are the RICS Future Foundations?
RICS published 5 foundations in November 2023 following the Bichard Review:
- Vision - a natural environment that is sustainable, resilient and inclusive.
- Mission - inspire members, advance knowledge, uphold standards.
- Strategic Goals - lead and influence on sustainability, attract diversity, strengthen trust, enhance member engagement.
- Values - professional, collaborative, inclusive, ambitious.
- A world class organisation - an efficient, effective and inspiring professional body that is easy to do business with.
What is the requirement for registration?
Firms providing surveying services to the public must register for regulation to ensure there is a recognised quality benchmark.
If 50% of Principals of a UK firm which provides surveying services are RICS members, then it has to be regulated, and if at least 25% then it can apply to be.
Principals are sole practitioners, directors, partners, or board members etc.
Each firm must nominate a Responsible Principal who is obliged to ensure all reasonable steps are taken and systems are in place to ensure compliancy.
What are the 5 RICS Rules of Conduct 2021?
1 - Members / firms must be honest, act with integrity, and comply with their personal / RICS obligations.
2 - Members / firms must maintain their professional competency and ensure that services are provided by competent individuals who have the necessary expertise.
3 - Members / firms must provide good-quality and diligent service.
4 - Members / firms must treat others with respect and encourage diversity and inclusion.
- Members / firms must act in the public interest, take responsibility for their actions and act to prevent harm and maintain public confidence in their profession.
In addition to your summary of experience, provide examples of where you have abided by the RICS Rules of Conduct.
- I have encouraged diversity and inclusion in the industry by volunteering to present my firm at University Graduate Career Fairs online and in person, where I spoke with students of non-cognate backgrounds.
- Ensuring that I provided a good-quality and diligent service, for a property management issue where the work was time sensitive, I worked late and over a weekend to ensure the matter was resolved and the in place for Monday morning for my client.
What is the RICS Ethics Decision Tree?
The Decision Tree provides a framework of questions which members should ask themselves when facing a situation in which they are asked to act in a potentially unethical manner of situation.
It encourages considering the legality of ones actions and their consistency with the Rules of Conduct.
The ultimate test is whether members would be content to have their decisions made public.
What are the disciplinary procedures?
A disciplinary procedure can be triggered by someone complaining to the RICS, an allegation by a client, or third party.
Three levels of disciplinary action are:
1. Action by Head of Regulation
2. Disciplinary Panel
3. Appeal Panel
Initial investigation is conducted by the Head of Regulation, who can initiate one of 4 actions upon completion of investigation if required:
1. Serve fixed penalty notice
2. Make a Regulatory Compliance Order
3. Refer matter to a single member of the Regulatory Tribunal for consideration
4. Refer matter directly to a Disciplinary Panel
Disciplinary Panels are for more serious breaches of conduct, where the penalties available to a Regulatory Tribunal Disciplinary Panel include:
1. Issue Regulatory Compliance Order
2. Reprimand
3. Fine
4. Expulsion
5. Require publication of results to RICS website local newspaper, and TRICS Modus magazine.
Appeals Panels can consider a members / firms appeal against review of a decision relating to the above.
What is the RICS Core Material? How does the RICS Professional Standards vs Practice Information?
Professional Standards & Practice Information are replacing Professional Statements, Guidance Notes and Codes of Practice etc.
Professional Standards - set requirements / expectations for RICS members / firms
Practice Information - supports the practice, knowledge and performance of RICS members and regulated firms.
Practice Alerts - new web page to collect Practice Alerts which are key tools for warning / alerting the profession to emerging areas of risk
What the steps required prior to undertaking a new instruction?
- Check I am professionally competent to undertake the work.
- Check for conflicts of interest and personal interest.
- Confirm Terms of Engagement in writing and get written approval from the client before I start work on the instruction.
How would you handle a Conflict of Interest?
Step One - Conflict Avoidance:
Upon receipt of the full facts, I would consider whether the conflict if irresolvable because my impartiality is compromised, or whether it can be properly managed. I would then decide to accept or decline the instruction.
Step Two - Written Advice to Both Parties:
If I accept the instruction, I would set out in writing to the parties the nature of the conflict / relevant facts, set out my proposals for how intend to deal with the conflict (info barriers), and request written confirmation from both clients of their informed consent that my firm can act in accordance with the provisions of the proposed procedure.
Step Three - Conflict Management:
Once written consent is received, set up an information barrier with the provisions of the procedure proposed.
What is the minimum procedure for the handling of a complaint?
Stage One - In House:
- Details of CHP issued when the firm receives a valid complaint.
- Procedure must be quick, clear, transparent, and impartially implemented.
- Details of nominated person who will investigate the complaint (The Complaints Handling Officer) must be stated as the person of contact.
- Complaint must be made in writing.
- Procedures and timescales for the investigation of the complaint should be recorded.
Complaint should be acknowledged within days and investigated within 28 days.
Stage Two - ADR Third Part Resolution:
- If complainant isn’t happy with the review, the second stage of the CHP involves using an independent redress scheme that the firm has chosen to use.
- Name of relevant appropriate redress mechanism must be provided to the complainant e.g., The Centre for Effective Dispute Resolution (CEDR), and the RICS Dispute Resolution Service.
What needs to have occurred in order for a negligence claim to be made?
A Duty of Care exists to clients and third parties, using a ‘reasonable care and skill’. When breached, and there is a loss, a claim for damages can be made (negligence claim).
What is Professional Indemnity Insurance and what are the current minimum requirements?
PII is mandatory for surveyors working in practice to protect clients, surveyors, and third parties against negligence claims when there is a duty of care breached and a claim for damages arises.
Minimum requirements based on turnover of the firm:
£100,000 or less = £250,000 cover
£100,001 - £200,000 = £500,000 cover
£200,001 + = £1,000,000 cover
Maximum level of uninsured excess required by RICS (based on turnover):
Up to £10 million = The greater of 2.5% of the sum insured or £10,000
Over £10 million = No set limit
Adequate and appropriate run-off cover is required following cessation of trading:
For consumer claims - min. of £1m of aggregate cover over 6 years
For commercial claims - firms must consider what is appropriate for a min of 6 years.
Firms unable to obtain run-off cover from their insurer or open market will be able to apply for coverage to the RICS Run-Off Pool.