Sept 26th Flashcards
- ## What is the purpose of having a “Professional Indemnity Insurance” for a regulated firm?
It provides protection against claims and losses arising from professional negligence or errors in the firm’s services.
- ## What is the significance of CPD (Continuing Professional Development) for employees in a building surveying practice?
CPD ensures that employees stay up-to-date with industry standards and best practices, enhancing their professional competence.
- ## What is the role of a nominee in the context of a sole trader seeking similar liability protection to a limited company?
A nominee is someone who can act on behalf of the sole trader within a limited company structure, offering some liability protection.
- ## What is the importance of having a procedure for handling clients’ money in a building surveying practice?
It ensures that client funds are handled ethically and in compliance with regulations, minimizing the risk of mismanagement or fraud.
- ## How can a firm register with HMRC, and why is it necessary?
A firm can register with HMRC to establish its legal identity and comply with tax regulations, which is a requirement for RICS regulation.
- ## Why might professional liability insurance premiums increase significantly, and how can this affect a company’s ability to provide services?
Premiums may increase due to high-risk factors such as the nature of services offered. This can limit a company’s ability to provide certain services if they become cost-prohibitive.
- ## What is the purpose of the RICS Insurance Pool, and how does it assist firms?
The RICS Insurance Pool provides an option for firms unable to obtain insurance on the open market, allowing them to continue operating while seeking coverage elsewhere.
- How does a gifts and hospitality log contribute to ethical practices in a building surveying practice?
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- It helps ensure transparency by recording all gifts and hospitality exchanges, making it easier to identify and prevent potential ethical breaches
- ## What legal obligations are associated with bribery prevention policies and procedures in a firm?
Firms are obligated to have policies and procedures in place to prevent bribery and to report any suspected bribery to relevant authorities if necessary.
- Why is it essential for a regulated firm to maintain records for 15 years in professional indemnity insurance?
- It ensures that the firm can provide evidence and coverage for potential claims over an extended period, maintaining trust and accountability.
- How can a firm become RICS-regulated, and what benefits does this status offer?
- A firm can become RICS-regulated by meeting specific criteria and obligations. This status offers credibility, trust, and access to RICS resources and support.
- ## What is the role of Continuing Professional Development (CPD) in ensuring the competence of employees in a building surveying practice?
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CPD helps employees stay updated with industry developments, maintain their skills, and provide high-quality services to clients.
- What is the main purpose of obtaining a logo kit from RICS as part of the regulatory process?
A logo kit allows regulated firms to display the RICS logo, signifying their adherence to professional standards and ethical practices.
- ## How does a firm’s ability to secure professional indemnity insurance on the open market impact its operations and services?
Difficulty in securing insurance can limit a firm’s ability to offer certain services, potentially affecting its competitiveness and viability.
- What is the significance of the RICS Insurance Pool in providing coverage to firms unable to obtain insurance on the open market?
- The RICS Insurance Pool offers a safety net for firms, allowing them to continue operating while seeking coverage elsewhere, thereby supporting business continuity
