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RICS Rules, Conduct and Ethics > RICS Rules of Conduct for Members and Firms > Flashcards

RICS Rules of Conduct for Members and Firms Flashcards

1
Q

How many RICS Rules of Conduct for Members are there?

A

NINE - divided into 2 parts

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2
Q

What are the RICS Rules of Conduct for Members?

A

Part 1 - General

  1. Interpretation of the Rules
  2. How the RICS can communicate with members

Part 2 - Personal and Professional Standards

  1. Ethical Behaviour
  2. Competence
  3. Service
  4. CPD
  5. Solvency
  6. Information to the RICS
  7. Co-operation

ECS / CPD / SIC

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3
Q

How many RICS Rules of Conduct for Firms are there?

A

FIFTEEN - divided into 3 parts

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4
Q

What are the RICS Rules of Conduct for Fimrs? - Part 2?

A

Part 2 - Conduct of Business - 7 Rules

  1. Professional Behaviour
  2. Competence
  3. Service
  4. CPD and Training
  5. Clients Money
  6. Complaints Handling
  7. PII

PCS / CPD / CCP

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5
Q

What are the rules in Part 3 of the RICS Rules of Conduct for Firms?

A

Part 3 - Firm Administration

Solvency
Information to RICS
Co-operation
Advertising
D - use of Designations to denote the firm is regulated by RICS
D - arrangements to cover Death or incapacity of a sole practitioner

SICADD

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6
Q

What are the RICS Rules of Conduct?

A

Two short documents - one for members and one for firms that set out the professional conduct and practice expected of members and firms

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7
Q

What do you understand by the rules Ethical Behaviour and Professional Behaviour?

A

Members and firms must act with integrity and avoid conflicts
Follow the 5 ethical standards

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8
Q

What do you understand by the rule relating to competence?

A

Members must have regard to whether they are competent to carry out an instruction and work with due skill care and diligence

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9
Q

What do you understand by the rule relating to service?

A

Members must provide a high standard of Service and customer care, and work in a timely manner

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10
Q

What do you understand by the rule CPD?

A

Members must comply with the RICS’ requirements in terms of CPD and firms must have necessary procedures in place to ensure that all staff are properly trained

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11
Q

What are the four requirements of CPD for members?

A
  1. Minimum of 20 hours of CPD
  2. At least 10 hours of formal CPD
  3. Must record CPD using the RICS CPD Management System on the RICS website
  4. Must maintain a relevant and current understanding of the RICS Professional and Ethical Standards
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12
Q

What is formal CPD?

A

Structured learning with a key learning objective / outcome

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13
Q

What are some examples of formal CPD?

A

Online training, courses, seminar

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14
Q

What are some examples of informal CPD?

A

Any self-managed learning relevant to your role

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15
Q

If you are not sure whether CPD is formal or informal, what could you do?

A

Use the useful flow chart on the RICS website to decide whether CPD is formal or informal

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16
Q

What do you understand by the rule regarding solvency?

A

Members and firms must ensure that their personal and professional finances are managed appropriately

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17
Q

What do you understand about the rule regarding information to the RICS?

A

Members and firms shall submit in a timely manner information required by the RICS

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18
Q

What do you understand about the rule Co-operation?

A

Members and firms shall co-operate fully with the RICS

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19
Q

What do you understand about the rule regarding Complaints Handling?

A

Firm must have a CHP approved by the RICS and a complaint log
CHP must include an ADR mechanism approved by the regulatory board

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20
Q

Are you aware of any Guidance Notes relating to CHP?

A

RICS Guidance Note on Complaints Handling (2016)

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21
Q

Does a firms CHP have to be approved by the RICS?

A

Yes

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22
Q

When should your PII insurers be notified if there is a complaint?

A

As soon as possible as this could lead to a claim for negligence

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23
Q

When must a CHP be issued to a client?

A

At the same time as ToE

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24
Q

What should a complaints log include?

A

Details
Progress
Outcome of the complaint

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25
Q

What are the two stages of handling a complaint?

A

Stage 1 - In House

Stage 2 - Alternative Dispute Resolution - 3rd Party

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26
Q

Who is a complaints handling officer?

A

Nominated person who will investigate a complaint and must be stated as the person to be contacted in the first instance

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27
Q

Can a complaint be made over the phone?

A

It must be made in writing

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28
Q

When should a complaint be acknowledged?

A

Within 7 days

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29
Q

When should a complaint be investigated?

A

Within 28 days

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30
Q

When is ADR used in complaints handling?

A

If the complainant is not happy with the in house review then the second stage involves using an independent redress scheme which the firm has chosen to use

31
Q

Give me some examples of the redress mechanisms.

A

Centre for Dispute Resolution (CEDR)
The Property Redress Scheme
RICS Dispute Resolution Service

32
Q

When might the RICS get involved during the complaints handling procedure?

A

If a firm / member fails to respond to the complainant or prevents the party having aceess to the redress scheme

33
Q

If you are a sole practitioner then who is the Complaints Handling Officer?

A

Must nominate a surveyor at another firm to act as CHO

34
Q

What is your companies CHP?

A

Contact partner in charge of the job and they will advise that the complainant must use the CHP and if they want to make a formal compliant - provide details

  • Complainant must provide a written summary of the complaint to the partner in charge of the job
  • If no contact, email George Roberts (Head of UK and Ireland
  • Complaint will be recorded on our database
  • We will also ask another independent partner to investigate the complaint
  • If the investigating partner is unable to conclude the complaint they will offer redress action
35
Q

What redress action does your firm use?

A

RICS Dispute Resolution Service

36
Q

What do you understand about the rule regarding clients money?

A

A firm must preserve the security of client’s money entrusted to its care in the course of its business or practice

37
Q

What can clients money include?

A

Rents, deposits, service charges, retentiones etc.

38
Q

What RICS documents are you aware of relating to clients money?

A

RICS Client’s Money: General Advice for Firms (2011)

39
Q

What are the three main areas of good practice as set out in the RICS Client’s Money: General Advice for Firms (2011)?

A
  1. Obligation to keep client accounts - clearly identifiable (also word ‘client’ on bank account) and keep clients money separate
  2. Obligation to keep accurate records
  3. Reporting obligations
40
Q

Can the client have money from a client account on demand?

A

Yes the client must be able to have monies on demand

41
Q

What do you understand about the rule regarding indemnity?

A

A firm must ensure all previous and current professional work is covered by adequate and appropriate indemnity cover which meets to standards approved by the Regulatory Board

42
Q

Why is professional indemnity insurance mandatory for surveyors working in a practice?

A

To protect surveyors, clients and third parties against negligence claims when there is a duty of care breached and a claim for damages arises.

43
Q

What RICS documents are you aware of relating to PII?

A

RICS Professional Indemnity Insurance Requirements (2019)

44
Q

What insurer can you use for PII?

A

All policies must be underwritten by an RICS approved insurer

45
Q

What are the current minimum PII insurance levels?

A

Based on a firms annual turnover in the preceding year

Turnover equal or less than £100,000 - £250,000
£100,001 to £200,000 - £500,000
Over £200,000 - £1,000,000

Minimum levels for each claim

46
Q

How would you determine the level of PII required for a new business?

A

Estimate turnover and adjust accordingly

47
Q

What are the maximum levels of uninsured excess required by the RICS?

A

Limit of indemnity / liability up to £500,000 - greater of 2.5% of the sum insured or £10,000

Over £500k - 2.5% of sum insured

48
Q

Should a policy be fully retroactive and what does this mean?

A

Yes. A fully retroactive policy means the policy covers claims made during the period of insurance, regardless of when the negligent act occurred

49
Q

Do the RICS need to have a copy of a regulated firms PII certificate?

A

Yes - a copy must be sent to the RICS on an annual basis as part of the firms annual return

50
Q

When is ‘run off cover’ required and what is it?

A

When a firm ceases trading adequate and appropriate run off cover is required:

51
Q

What level of run off cover is required for consumer claims?

A

Aggregate of £1m cover for minimum of 6 years

52
Q

What level of run off cover is required for commercial claims?

A

At least 6 years but RICS recommends 15 years

53
Q

What can a firm do if they cannot obtain run off cover from insurer / open market?

A

Can apply for coverage to the RICS Run-off Pool

54
Q

Is PII cover required for ‘pro-bono’ (unpaid) work for charities and friends?

A

Yes

55
Q

When must an insurer be notified of a potential claim?

A

As soon as possible - early notification

56
Q

What happens if a member cannot arrange cover?

A

The RICS assigned Risk Pool is available at a cost for members

57
Q

Is there a special scheme for retired or part time members?

A

Yes - RICS Low Earners Scheme

58
Q

Is there anyone you can speak to if you face a claim for work carried out by an employer who has since gone into administration?

A

The RICS runs a Members Support Service which offers help and advice

59
Q

Can a firm cap their level of liability with clients for individual instructions?

A

Yes - most firms aim to do this

60
Q

Are you aware of a PII RICS Guidance note specific to valuations?

A

Yes
RICS Guidance Note on PII, Risk, Uncertainty and Insurance in Valuation Work (2018) which covers matters such as the Courts’ approach to valuers’ liabilities, liability caps, PII etc.

61
Q

What do you understand about the rule for firms regarding advertising?

A

A firm shall promote its professional services only in a truthful and responsible manner

62
Q

What do you understand about the rule for firms regarding arrangements to cover incapacity or death of a sole practitioner?

A

A sole practitioner / a firm with a sole principle must have appropriate arrangements in the event of the death, incapacity or extended absence of the sole principle

63
Q

What do you understand about the rule for firms regarding the use of designations?

A

A regulated firm must display on its business literature a designation to denote that it is regulated by the RICS in accordance with the Regulatory Board’s published policy on designations

64
Q

What are the current rules for RICS registration as a regulated firm?

A

A Firm is required to apply to register for regulation by RICS if the Firm:

a. is providing surveying services to the public in Regulated Area A; and
b. at least 50% of its Principals are RICS Members.

Firm with a Head Office in Regulated Areas A or B may apply to be regulated by RICS if it:

a. is providing a surveying service to the public in Regulated Area A or B; and
b. has at least one Principal who is an RICS Member; “

65
Q

Are you aware of any changes to the Rules of Registration?

A

Yes
From April 2020, a firm is only eligible to register if they provide surveying services to the public and if at least 25% of the firms principles are RICS members - used to just be at least one principle

No changes to the 50% rule - still must register

Also the requirement for a ‘Responsible Person’

66
Q

If there are no RICS members in a firm can they register with the RICS?

A

No

67
Q

What is a responsible person?

A

A requirement of the new changes to RICS registration. A person who provides accountability and engagement with RICS standards and regulation

68
Q

What is a Contract Officer and what do they do?

A

Individual designated by the firm to be the main liaison point between the Firm and RICS on regulatory matters

69
Q

Who will hear the disputes over the registration of a firm?

A

The Registration Panel

70
Q

Why are firms providing surveying services to the public required to register for regulation?

A

To ensure that there is a recognised quality benchmark for all firms

71
Q

Can anyone use the RICS logo?

A

No only RICS regulated firms and members

Firms must use the ‘regulated by the RICS’ designation

72
Q

What information do you need for the RICS annual return?

A
  1. Type of business and staffing details
  2. Statutory regulated activities - such as financial services
  3. Nature of clients
  4. CHP details and records
  5. PII details
  6. Whether the firm holds clients money.
73
Q

What are the three benefits of RICS regulation?

A

Confidence - as firms are monitored by RICS Regulation
Professionalism - firms have to provide clear, impartial and expert advice
Security - firms have to have a CHP and PII cover.

Regulation provides a ‘gold standard’ of quality control for clients

RICS Rules, Conduct and Ethics (7 decks)

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