When was the RICS founded?
1868
When did the RICS gain its royal charter ?
1881
What are the RICS principles for better regulation?
Proportionality
Accountability
Consistency
Targeting
Transparency
What are the RICS rules of conduct ?
1) members and firms must act with honesty and integrity & comply with their professional obligations, including obligations to RICS
2) members and firms must maintain professional competence, ensuring services are provided by competent individuals
3) members and firms must provide good quality and diligent services
4) members and firms must treat others with respect and encourage diversity and inclusion
5) members and firms must act in the public interest, take responsibility for their actions and act to prevent harm & maintain public confidence in the profession
What are the professional obligations of members ?
1) members must adhere to RICS CPD requirements (20 per year with minimum 10 formal)
2) members must comply with RICS
3) members must promptly provide all information reasonably requested by the Standards & Regulations board, or those exercising delegating authority on its behalf
What are the professional obligations of firms?
1) publish a complaints handling procedure
2) work is covered by the adequate professional indemnity cover
3) Locum - firms with a sole principal have an arrangement in the event of death or ill health/ inability to work
4) firms must co-operate with RICS
5) firms must display on their business literature ‘regulated by RICS’
6) must promptly provide all information reasonably requested by the Standards & Regulations board
7) firms must report to RICS any matter they are required to report under the rules for registration of firms
What must firms provide annually in compliance with the RICS Registration of firms?
- type of business and staffing
- training that is provided
- nature of clients
- complaints handling procedure
- PI insurance
- whether the firm holds clients money
What processes do firms need to have in place when handling clients money ?
- clear segregation of duties for employees
- secure accounting systems and data
- client money must be kept separate and clearly identifiable. Must have ‘client’ within bank account name
- clients must always have access to funds
- the account cannot be overdrawn
Why do you want to be a member of the RICS?
I want to be a member of the RICS to demonstrate my commitment to the highest professional and ethical standards in the built environment. Gaining MRICS status will strengthen my credibility, broaden my career opportunities, and allow me to contribute confidently to the profession
Why did the previous rules of conduct change?
They had been in place since 2007 and the change was to provide a single document to enable greater clarity for RICS members and firms
What is your understanding of the RICS rules of conduct changes ?
The rules of conduct October 2021 Global Practice statement will overhaul the previous separate documents:
- rules of conduct for members
- rules of conduct for firms
- global professional and ethical standards
Appendix A of the rules of conduct now contains the professional obligations of members and firms
Why do the RICS have rules of conduct?
To provide a framework that we can all work to and so that the client knows they are getting a set level of service
In the case of a breach of a rule of conduct what is the procedure?
A formal investigation by the head of Regulation of the RICS is the first step in the process
The RICS can request information and or visit and inspect to investigate compliance
Members must cooperate fully with all enquiries
Who is the chair of the RICS?
Martin Samworth
How can disciplinary proceeding be triggered?
- someone complaint to the RICS
- an allegation by a client or a third party
- information received or established by the RICS
What insurances would you need when starting your own firm?
- professional indemnity insurance
- public liability
- employers liability
- building insurance for office premises
What is the purpose of professional indemnity insurance?
It provides financial cover in the event a client suffers financial loss as a result of a breach of professional duty e.g neglect, errors or omissions
On what basis is professional indemnity insurance underwritten in the UK?
On a claims made basis
What does PI insurance underwritten on a claims made basis mean?
The insurance policy that is in place at the time when breach is discovered is responsible for providing the indemnity, not the cover in place at the time of when the breach was made
If you made a mistake in a cost plan, what would your insurance company expect?
I would notify them of the incident and proceed with what is set out in the policy
What are the requirements regarding PI insurance set out by the RICS?
- policy cover must be made on an ‘each and every’ claim basis
- RICS set out the minimum level of indemnity
- RICS sets out the maximum levels of uninsured excess
- run off cover must be in place for at least 6 years
- policy should include cover for past and present employees
What are the minimum levels of indemnity in relation to PI insurance?
- 0 to 100,000 turnover = 250,000
- 100,001 to 200,000 turnover = 500,000
- 200,001 and above = 1 million
What is the difference between public liability and employers liability insurance ?
Employers - covers claims for employees who are injured or become ill as a result of their work
Public- cover claims from the public, such as clients, for injury or property damage caused by your business
How can you limit your liability when agreeing terms of appointment with your client ?
- run off cover must be in place
- execute the appointment as an underhand to reduce liability to 6 years instead of 12
- if the clients requirements are performance based, seek to request a clause limiting the appointment to reasonable skill and care
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