What processes need to be in place for handling clients money?
- Client must always have access to funds
- Client money must be kept separate and clearly identifiable — included ‘client’ in account name
- Interest on the account must be agreed with the client
- Must not be overdrawn
- Controls in place to keep funds secure
- Competent and knowledgeable staff to process clients’ money with cover provided for long term absence.
- Drawdowns and reimbursements must be communicated via an account ledger
What must a complaints handling procedure include?
- The RICS provides a model form which has two stages
- Stage One
- Acknowledge the complaint as quickly as possible but must be within 7 days
- The complaint should be handled by a senior person or a designated complaints handler
- Must issue a full response to the complaint within 28 days
- Stage Two
- If the firm is unable to resolve the complaint internally then the complaint will be taken to an
independent redress mechanism that is approved by the RICS. - It must be clear, quick, transparent and impartial and free of charge
- All complaints, their progress and outcomes must be recorded
- Note the need to advise PI insurers of a complaint immediately
When should you decline an instruction of new work from a client?
1) If there is a Conflict of Interest
2) Not in clients interest - you can’t resource the job
3) Illegal
What makes up a fee proposal/Fee bid?
1) Executive Summary - Scope / Solution
2) Client needs / drivers
3) Project issues
4) Benefits for clients / experience
5) Conditions of engagement / T&Cs
6) Methodology / organisation / CV’s of Project Team
7) Proposed fees
On receipt of a formal complaint from a client in writing what would you do?
- Arrange a call with the client as soon as possible to notify them that you have
received the complaint and are working to rectify the issues they are
experiencing - Issue the client a copy of my firms complaints handling procedure for reference
- Report the complaint with all relevant details to a senior person within the firm or
designated complaints handler - Notify my firms PII insurers inline with our policy requirements
- Arrange a meeting with the client to take on board their feedback and address
any areas of concern by introducing appropriate procedures if required - If I am unable to resolve the complaint this would need to be referred to the RICS
independent redress mechanism
Prior to working with a new client, what pre-appointment checks would you undertake?
- Ensuring that I am sufficiently knowledgeable, skilled and competent to carry out
the work required - Checking for conflicts of interest in line with the RICS professional guidance on
conflicts of interest - Anti-money laundering checks, in line with the Anti-Money Laundering Directive
and RICS professional statement Countering Bribery and Corruption, Money
Laundering and Terrorist Financing - Ensuring that the firm has sufficient PII insurance to cover the value of the
instruction - Formalise the engagement in written terms of engagement
When setting up a new practice, what procedures would you put in place to ensure good client care was being provided?
- Processes for formalising terms of engagement and clear communication lines with the client, including confirming timescales, resourcing adjustments and
obtaining any information required from the client - Set up procedures for obtaining regular client feedback and ensuring this is acted upon for example by holding monthly client performance reviews
- Develop strategies for taking part in business development activities in order to retain existing clients and also generate new business
- Procedures to keep client information confidential and using non-disclosure agreements to protect client confidentiality if required
- Reporting to clients using agreed and consistently formatted documentation that has been tailored to meet the client’s requirements
The RICS has a very specific set of rules when it comes to handling clients money – this is identified within the rules of conduct for firms within rule number 8. All firms must ensure that….
- Client must always have access to funds
- Client money must be kept separate and clearly identifiable — included ‘client’
in account name - Any interest accrued on the account must be agreed with the client
- The account must not go into an overdrawn position
- Strict controls must be in place to keep client funds secure
- Competent and knowledgeable staff should be able to process clients’ money
with cover provided for long term absence. - Drawdowns and reimbursements must be communicated via an account ledger
What is the difference between a client and a customer?
- Customers are best defined as an individual who is purchasing goods and
services from a company. They are typically one time transactions whereas a - Client refers to a person who looks for professional service from the business.
- A customer engaging in a transaction with a company will not have the same
relationship as a client who engages in a fiduciary relationship with the company. - This means both sides work on long-term goals and a long-lasting relationship. The business has to focus on creating a strong bond with the client in order
to retain them as a client. - The client engages in a long-term relationship that can be oftentimes hard to
predict.
How do you conduct yourself with a new client?
- I am always sure to be friendly, engaging and enthusiastic
- I am inquisitive about key challenges they may be facing
- I ensure at all times as a minimum I am:
Well presented
Polite
Conscientious
Respectful
On what ground would you ask a client for additional fees?
- The programme duration is extended
- The scope of services being delivered has changed
- The location and travel requirements of the project have changed
- Increased attendance at meetings has been requested
- The frequency of the project deliverables has been adjusted
- The value and scope of the project has changed
You are bidding for a project and the client advises that if you reduce your fee bid by £3,000 you will be first place and win the tender, how would you advise the client?
- Unfair competition
- Not treating others with respect
- Not acting with integrity
- Devalues the profession
- You would need to reduce scope to achieve same margin, would this provide high standard of service?
- This could be interpreted as a bribe
What measures should be taken to try and avoid PI claims?
- Keep full and detailed records of meetings, conversations etc
- Record recommendations and advice given
- Use proper letters of engagement, scope of services and terms of engagement
- Don’t advise on a specialism outside your field of experience
- Use RICS guidelines
- Avoid poor management and excessive workloads
What is meant by the term client money?
- Money of any currency whether in the form of cash, cheques, draft or electronic
transfers - An RICS regulated firm hold or receives on behalf of another person or company
that is not immediately due or payable on demand to the RICS regulated firm for its
own account - Client money excludes fees paid in advance for professional work
What is the Clients’ Money Protection Scheme?
- Run by the RICS
- Provides for any member of the public to be reimbursed their direct loss of funds
- This is provided through RICS insurance policy
- RICS’ CMP scheme is split into two parts:
General client money protection, covering money held by firms undertaking any surveying activities (Client Money Protection for Surveying Services); and
Residential agency activity in England protection, covering areas under the Client Money Protection Schemes for Property Agents (Approval and Designation of Schemes) Regulations 2018 (Client Money Protection for Residential Agents).
Why is client care so important?
- Surveying practices that provide excellent client care are likely to retain existing clients and develop new business leads by receiving positive testimonials
- A failure to provide good client care is likely to lead to client dissatisfaction, complaints and in the worst-case scenario, Professional Indemnity insurance claims for professional negligence.
- Formal complaints and insurance claims can be costly and result in a stressful working environment, reduced staff performance and be time consuming
- Complaints and claims can and should be avoided with diligence, manageable
workloads and resource planning and well developed procedures for obtaining and acting on customer feedback
What is client care?
1) Professionalism
2) Competence
3) Punctuality
4) Trust
5) Reliability
6) Presentation
7) Regular communication
8) Review of services provided and standard
9) KPIs to monitor client satisfaction
What is a complaint and why is this a serious topic area for surveyors?
- A complaint is a statement that a situation is unsatisfactory or unacceptable to the client.
- These can either be made formally either in writing or verbally.
- It is important to take complaints seriously as the RICS require these to be handled inline with their complaints handling procedure.
- Practices also have an obligation to notify PII insurers
- In the worst case they can result in loss of clients, reputational damage and PII claims against firms
When should you decline an instruction of new work from a client?
1) If there is a Conflict of Interest
2) Not in clients interest - you can’t resource the job
3) Illegal
What makes up a fee proposal/Fee bid?
1) Executive Summary - Scope / Solution
2) Client needs / drivers
3) Project issues
4) Benefits for clients / experience
5) Conditions of engagement / T&Cs
6) Methodology / organisation / CV’s of Project Team
7) Proposed fees
How would you proceed if a client was insistent that you continued to work for them despite a conflict of interest?
1) Check their understanding of reduced impartiality
2) Seek letter of instruction to continue
3) Agree working procedures to manage the conflict
4) Keep them updated of any risks
What is a Client Brief?
1) The purpose of the project brief is to provide a firm foundation for the initiation of the project
2) It is a formal statement of the objectives and functional and operational requirements of the finished project
3) It should be in sufficient detail to enable the integrated project team to execute the specification and detailed design of the work and is therefore an essential reference for the team
How would you limit the risk of working with a client who may be financially unstable?
1) Dun & Bradstreet credit check
2) Company search (Account information from Companies House)
3) Internet search (Client website for additional information - judgement on reliability)
What is meant by the term Duty of Care?
- A duty of care is to ensure that another party does not suffer harm or loss that can arise as a result of a breach of contractual obligations or Tort of Negligence.
- General forms of appoint will include contractual duties to perform services with reasonable skill and care that is to a standard expected of a reasonably competent professional
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Accounting Principles and Procedures17
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Business Planning3
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Client Care24
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Communication & Negotiation12
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Conflict Avoidance, Management & Dispute Resolution Procedures18
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Data Management12
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Diversity, Inclusion and Teamworking20
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Ethics, Rules of Conduct and Professionalism30
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Health & safety71
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Inclusive environments16
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Inspection73
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Investment Management0
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Leasing and Letting42
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Measurement44
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Valuation158
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