Starting/Closing firm

Question 1

Which document is relevant for opening firm under the RICS?

Answer 1

Rules for the Registration of Firms, Eff. 2022 V8

Question 2

explain the benefit of registering a firm with the RICS

Answer 2

• Confidence – for clients as firms are monitored by RICS regulations
  
  • Professionalism – firms will have clear, impartial, and expert advice
    Security – recognised complaint handling procedure, independent redress and PII cover

Question 3

What is the barrier for a firm to become RICS registered under Rules for the Registration of Firms, Eff. 2022 V8

Answer 3

MANDATORY:
* 50%+ of principals are RICS members
* Providing surveying services to the public in the UK
ELIGIBLE:
* Between 25%-49% of principals are RICS members
* Provides surveying services to the public in the UK
Basically at least 25% of principals must be RICS members
INELGIBLE:
Between 0-24% of principles are RICS qualified - this is an issue

Question 4

What must firms provide when registering?

Answer 4

(Basically Appendix A, contact officer and client money handling)

* Adequate PROFESSIONAL INDEMNITY INSURANCE
* SUCCESSION arrangements if sole practitioner - works to continue in the event of incapacity, absence or death
* PUBLISH - COMPLAINTS HANDLING PROCEDURE including: alternative dispute resolution & maintain complaints log
* COOPERATE with RICS
* CONTACT OFFICER for all RICS communications - VOA: Claire Johnson
* Ensure you are a RICS registered valuer
* RICS LOGO KIT
* Procedures for handling client's money

Question 5

What are a firms annual confirmation obligations to the RICS

Answer 5

• Type of business and staffing details
  
  • Statutory regulated activities – e.g. financial services
  • Nature of clients
  • Complaints handling procedures and records
  • PII details
    Whether the firm holds clients’ money

Question 6

What should you do when closing a firm

Answer 6

1. Agree a closure date
2. Inform the RICS and apply for a deregister
3. Ensure the clients are informed at the earliest opportunity and hand over arrangements made to the new firm
4. Deal with money - Return any monies held by clients to their own accounts
5. Notify PII and arrange run off cover for a minimum of 6 years
6. Retain a copy of files and record for a minimum of 6 years
   Inform staff and take the necessary steps (redundancy etc)