Setting Up own RICS firm Questions Flashcards
What are the key considerations when setting up your own surveying firm?
You must consider business structure (sole trader, partnership, or limited company), RICS regulatory requirements, Professional Indemnity Insurance (PII), financial planning, and compliance with UK laws such as anti-money laundering (AML) regulations.
What are the RICS requirements for setting up an RICS-regulated firm?
Firms must register with RICS Regulation
Comply with rules of conduct
Hold adequate PII
Implement Complaints Handling Procedure
Appoint RICS Responsible Principle
Why is Professional Indemnity Insurance (PII) important for a surveying firm?
PII protects against professional negligence.
RICS has minimum requirements for coverage, and it must be on an approved policy wording.
What are the financial responsibilities of running a surveying firm?
This includes tax obligations (VAT, corporation tax, PAYE for employees), cash flow management, budgeting, invoicing, and record-keeping in line with HMRC regulations.
What is an RICS Client Money Account, and when is it required?
If a firm holds client funds (e.g. deposits, rent, service charge), it must operate a separate RIC-compliant client money account to safeguard those funds.
How would you manage conflicts of interest when running your own firm?
Implementing a conflict-of-interest policy, maintaining clear client records, using information barriers where necessary, and following RICS guidance on transparency and disclosure.
