Terms of Engagement, Complaints Handling, CPD and Conflicts of Interest Flashcards
How would you set out third party reliance in Terms of Engagement?
RICS-regulated firms should include a clause in their engagement letters that prevents third-party reliance
What are the three key terms that should be considered from a risk perspective in the context of every instruction you undertake?
1 The scope of the work
2 The basis on which the fee will be calculated
3 The liability cap
What is an annual return?
Annual submission from RICS regulated firm containing the following:
* Types of business and staffing details
* Statutory regulated activities
* Nature of clients
* CHP and records
* PII details
* Whether firm holds client money
Tell me what you understand about Complaints Handling Procedures?
- RICS Guidance Note is Complaints Handling 2016
- Firms’ CHP must be approved by RICS
- Firms record complaints log
- Notify PII ASAP as could lead to claim for negligence
- Members and firms are required by Rule 5 of RoC to operate CHP and maintain a complaints log
- CHP must complain ADR mechanism
- Firms CHP must be approved by PII provider
- Effective CHP is: fit for purpose, understood, available, readily shared, reviewed regularly
When and how can RICS be involved in a complaint about a firm or member?
- Client can complain to RICS about standard of service or professionalism of member or firm
- RICS cannot determine whether professional opinion is correct or offer second opinion or cannot resolve issues subject to Court proceedings or where another resolution mechanism exists
- RICS investigate matters that are of public interest to investigate
- Process takes 6 months and no right of appeal
Can you tell me about the CPD requirements for members of RICS?
- Members undertake minimum of 20 hours CPD per annum
- Minimum 10 hours formal and the rest informal
- All members to maintain relevant current understanding of RICS Professional and Ethical Standards during 3 year period
- Record CPD using RICS CPD management system
Why is CPD important?
- CPD is important as RICS is a standards-based organisation and its members operate in a constantly changing environment, e.g. new legislation
- RICS expects its members to be competent to provide the best possible service. CPD is a highly beneficial career tool
- If it is planned and managed in the right way it can be used to strengthen the member’s business skills and to acquire new skills/specialisms
Tell me about the RICS guidance on dealing with Conflicts of Interest.
- RICS Professional Statement Conflicts of Interest 1st Edition January 2018
- Member / firm must not advise where doing so would involve risk of CoI (material risk)
- Need to judge if you can be impartial / objective / independent, act in best interest of the client, seek their consent
- Firm must have effective system and control in place to ensure manage compliance with Professional Statement
What is double dipping (dual agency)?
Dual agency is where an agent has a contractual agency relationship with the buyer and seller at the same time. Must not be undertaken
What is a locum and who might need one?
- Locum is the professional who is appointed stand in for the surveyor if they are unable to work e.g. accident, illness, unforeseen circumstances, death
- Typically, locum will be a Chartered Surveyor but may be a solicitor or accountant by trade
