Updated RICS questions Flashcards
Who is the current RICS president
Ann Grey
What does the governing council do
Sets global strategy, ensures RICS fulfills royal charter obligations, provides strategic oversight on requirements for entry, sets and enforces professional standards
What does the RICS board do
Has delegated responsibility for delivery of the business plan and oversight of operations(excluding standards and regulation)
What does the standards and regulations board do
Exercises RICS regulatory functions Inc. Strategy, governance, structure, policy, operational oversight in the public interest
What is the current RICS governance structure
Privy council
Governing council
Standards and regulation board/regulatory tribunal
RICS board
Audit, rush assurance, finance committee
Nominations and remuneration committee
World regional and market advisory panels
What is the role of the rics
Promote and enforce the highest professional standards in the development and management of land, real estate, construction and infrastructure.
Provides foundation for confident markets, better places to live and work, and is a force for positive social impact
What is the purpose of the rics profession and standards (PPEC)
Protect - consumers and businesses.
Ensure high level of professionalism across the built and natural environment.
Ethics- Lay out ethical, conduct and competence expected by members.
Deliver confidence.
What did the Levitt review highlight
Lack of clarity, structure and purpose of rics governance arrangements. Called for full independent review
What was the purpose of the Bichard review
Clarify purpose of rics and it’s responsibility to act for the public advantage.
Make recommendations on the governing structure.
Provide proposals on the future culture and strategy of the institution
Who is the CEO of RICS
Justin young
What are the benefits of being a RICS member
Status - client confidence
Recognition - professional excellence
Market advantage - competitive advantage
Knowledge - professional standards, guidance, CPD
Network - access to network of professionals
What are the benefits of being an RICS registered firm (CPS)
Confidence for clients through RICS regulation
Professionalism - clear, impartial advice
Security - firms must have complaints procedure, PII cover
What are the rules for registration of firms
Must have at least 25% RICS qualified principals.
Must designate a responsible principal to provide oversight, accountability, and engagement with RICS standards regulation
What document covers registration of firms
Rules for registration of firms v.8 w/e 02/02/2022
When is a firm required to register
If they provide surveying services to the public.
They are operating in Regulated area A.
At least 50% of the principals are RICS members
Describe the new Rule of Conduct Structure
5 simple rules that apply to all
3 professional obligations to RICS for Members
7 professional obligations to RICS for firms
What is Rule 1
Members and firms must act with honesty, integrity and comply with their professional obligations, including obligations to RICS
What is Rule 2
Members and firms must maintain their professional competence and ensure that services are provided by competent individuals who have the necessary expertise
Name an example of Rule 1
Avoiding conflicts of interest
Name an example of Rule 2
Not acting beyond your competence, engage specialists
What is Rule 3
Members and firms must provide good quality and diligent service
Name and example of Rule 3
Using individual terms of engagement to explicitly meet the needs of clients
What is Rule 4
Members and firms must treat others with respect and encourage diversity and inclusion
Name and example of Rule 4
Not discriminating
What is Rule 5
Members and firms must act in the public interest, take responsibility for their actions and act to prevent harm and maintain public confidence in the profession
Name an example of Rule 5
Question any suspect practice and be a whistle blower if necessary
What are Members 3 professional obligations to RICS
1) Compliance with CPD requirements set by RICS
2) Members must cooperate with RICS
3) Members must promptly provide all information reasonably requested by the Standards and Regulation Board, or those exercising delegated authority on its behalf.
What is the purpose of ADR
To resolve disputes that have not been resolved through an RICS Member Firms internal complaints procedure
Who is the default ADR provider for RICS
CEDR - Centre for Effective Dispute Resolution
What are the requirements for Firms in respect of ADR
Firms must have a named ADR provider in their complaints handling procedure. SRB has a list of approved providers
What are the complaints handling requirements for firms
Its is mandatory for all RICS regulated forms to publish a complaints handling procedure which includes an ADR mechanism, and they MUST maintain a complaints log.
What are the insurance requirements for RICS firms
Must have a level of cover relevant to turnover limited
Must buy from specialist insurer recommended by RICS
Must obtain 6 years run off cover
Must have full civil liability
Insurance must be on an each claim basis
What level of cover is required by firms and what is it based on?
Turnover:
<100,000 = £250,000 cover
<100,001-200,000 = £500,000 cover
<200,001 = £1 million cover
What is the rationale behind the new rules of conduct
- Simpler structure/easier to understand
- Clear examples to support members professional judgement
- Focus on respect, diversity and inclusion
- Highlighting the importance of understanding evolving technology (benefits and risks)
- Tackling global challenges e.g. climate change and sustainable development
What is the ethics decision tree
Provides a framework of questions which members should ask themselves when facing an ethical dilemma.
Encourages clear reasoning, legality of decisions, and consistency with the Rules of Conduct.
What should Members do when facing ethical professional decisions
- consider the facts
- identify the relevant RICS standards in the Rules of Conduct and other guidance
- use your professional judgement, which may require you to balance different interests and principles
What document sets out the regulatory approach by RICS of regulated member/firms/non-members
RICS Regulatory decision making Version 3 Feb 2022
Where is the RICS disciplinary process set out
Regulatory Tribunal Rules 2020
What are the three levels of disciplinary action
1) Action by head of regulation
2) Disciplinary panel
3) Appeal panel
When might a fixed penalty notice be served
For breaches of rules relating only to the supply of information to the RICS by firms and members
When might a regulatory compliance order be issued
Low level breaches of rules e.g. failure to undertake appropriate CPD
What is a regulatory compliance order
Written document stating terms upon which a member or firm must desist certain actions in a specified time period, and an agreement to pay a fine.
After initial investigation of a disciplinary matter, what actions can be initiated by the Head of Regulation
1) Serve fixed penalty notice
2) Make a regulatory compliance order
3) Refer to single member of regulatory tribunal
4) Refer directly to a disciplinary panel
When can a firm/member act for a Client if there is a conflict of interest
If informed (written) consent is given. This can only be sought where the member/firm are satisfied that proceeding despite the conflict is in the interests of all affected, is not prohibited by law and will not prevent competent and diligent advice from being provided.
What written advice should be provided to both parties where a conflict of interest arises
Disclosure of the nature of the conflict, circumstances surrounding it, the facts, and how your firm intends to deal with the conflict e.g. setting up an information barrier.
Be clear, ensure both parties can make their own decision and inform them to seek independent advice if needed.
Request written confirmation from both clients of their informed consent.
What information barriers can be put in place?
Different surveyors, physically separated with different support teams. Secure storage of information. Keep a clear audit trail of the conflict check and all communication. The firms compliance officer must oversee all actions.
What document sets out the principles for identification and management of conflicts
RICS Professional Standard: Conflicts of Interest 2017
What is money laundering?
Concealing the source of the proceeds of criminal activity to disguise their illegal origin.
What is the Councils policy re. gifts
In accordance with MCC’s Code of Conduct gifts should be declined. Offer of gifts should be recorded in a departmental register and managers informed.
What is bribery
Offer/acceptance of an advantage that might sway judgement, or in exchange for doing an illegal act
When can you share files without a client’s consent?
Police or HMRC investigation
What is a professional standard?
set requirements or expectations for RICS members and regulated firms about how they provide services or the outcomes of their actions’, and:
Are principles-based
Focus on outcomes (in interest of clients and the public)
Set a baseline expectation for competence and/or ethical behaviour in the specific context
Where a Professional Standard applies to an area of practice, they set:
Mandatory requirements that surveyors must follow, where the word ‘must’ is used
Best practice that surveyors should follow, where the word ‘should’ is used.
What is needed to set up your own firm?
Complaints handling procedure, complaints log, if sole trader you need a separate complaints handling officer in a different firm.
PII
Locum cover.
A responsible principal.
Client money account.
CPD plan.
