1
Q
When was the RICS founded
A
1868
The RICS has royal charter, initially granted by Privy Council in 1881
2
Q
What are the levels of RICS membership
A
Current membership is over 140,000 qualified and trainee members
- FRICS
- MRICS
- AssocRICS
- Trainee/Student
3
Q
How do you become a fellow?
A
You need to provide evidence of achievement of four fellowship characteristics
- 5+ years at MRICS
- a leadership role
- professional/technical achievement
- academic achievement or raising the profile or RICS
As well as a portfolio of professional achievement to support the application is required to include your CPD record
4
Q
What is the RICS current governing structure?
A
RICS is governed under the terms of its Royal Charter, by various councils and boards.
Governing council has over 20 members and runs the RICS, providing management and strategic direction
The Standards and Regulation Board and the Management board report to the Governing Council
There are 17 specialist professional groups covering property land and construction, each with its own elected board and are responsible for outlining standards of competence and practice
5
Q
Who is the current president?
A
Nick Maclean who has taken over from Justin Sullivan following a regulatory review and earlier this year stepped down
6
Q
Who is the current CEO?
A
Justin Young
6
Q
What are the main roles of the RICS?
A
- to maintain the highest standards of education and training
- to protect consumers through strict regulation of professional standards
- to be the leading source of information and independent advice on land, property, construction and associated environmental issues
7
Q
What was the purpose of the Bichard Review?
A
To clarify the purpose of the RICS following the Independent Review of internal governance failings within RICS carried out by Alison Levitt QC in 2021
This clarified the purpose of the RICS including its responsibility to act for the public advantage, make recommendation on its governing structure to deliver that purpose and provide proposals for incoming leadership and governing body on the future culture and strategy of the institution
8
Q
What did the Bichard Review recommend?
A
It recommended a quick and phrased approach to the adoption of clear responsibilities for governance by key members, recruiting a new management board and standards and regulation board (with external membership also) and holding elections for key RICS committees and groups
RICS agreed to adopt all changes which is still ongoing
9
Q
What is the aim following the Bichard Review?
A
To deliver a member-led public interest focused RICS with 5 key themes of governance, strategy, people, culture and values and member service
10
Q
When did the Governing Council elections take place?
A
In April 2023 to better reflect the geographical location and disciplines of members
RICS recruited a Diversity, Equality and Inclusion and Sustainability Panel Chairs to lead these priority issues as part of the new governance structure
11
Q
What did RICS announce in April 2023?
A
A package of support to promote and drive member engagement, experience and value
This initiative include some free CPD events working with MATRICS and an improved customer experience
12
Q
What were the main key areas of focus in the Bichard Review?
A
The Bichard Review reported in June 2022 making 36 recommendations in 7 key areas
- renewed and increased focus on public interest which involved amending the public charter and creating a public interest panel to advise the governing council
- maintaining self regulation through greater independence for regulatory functions
- increased focus on diversity and inclusion (across profession and in RICS governance)
- empower members through greater support for regional boards, more member engagement and focus on younger members
- once every five years undertaking an independent review of RICS governance and effectiveness at delivering against its charter for phonic advantage
- a new simplified clear accountable governance structure
- showing greater leadership on key issues that matter most to society such as sustainability and climate change
13
Q
What are the 5 future foundations
A
The RICS produced the 5 future foundations in November 2023 following the Bichard Review
- Vision - a natural and built environment that is sustainable, resilient and inclusive for all
- mission - inspire members, advance knowledge and uphold standards
- strategic goals - lead and influence on sustainability, attract a diverse next gen, strengthen trust, enhance member value and engagement
- values - professional, collaborate, inclusive, ambitious
- world class org - an effective, efficient and inspiring professional body that’s easy to do business with
14
Q
What are the benefits of being an RICS member?
A
- status
- recognition
- market advantage
- knowledge
- network
15
Q
What firms must register for regulation to the RICS
A
If 50% of Principals of a UK firm which provides surveying services are RICS members then they must apply
If 25% then it can apply
If none then it can’t apply
16
Q
What are the requirements for registration?
A
The firm must annually make a return to the RICD confirming their compliance with their obligations
Must nominate a Responsible Principal who is obliged to ensure all reasonable steps are taken and systems are in place to ensure compliance with regulatory and RICS requirements including to report to RICS as required
17
Q
What are the rules surrounding the RICS logo?
A
Only RICS members and registered firms can use the logo
There is a restriction on the designation Chartered Surveyors by firms to the trading name only
18
Q
What information is required by the RICS for registration
A
- type of business and staffing details
- name of the responsible principal
- statutory regulated activities - such as for financial purposes
- nature of clients
- complaints handling picture details and records
- professional indemnity insurance details
- whether the firm holds clients money
19
Q
What are the RICS Rules of Conduct
A
Published in October 2021 and effective from 2 February 2022 on a global basis
Rule 1: members and firms must be honest, act with integrity and comply with their personal obligations including obligations to RICS
Rule 2: members and firms must maintain their professional competence and ensure that services are provided by competent individuals who have the necessary expertise
Rule 3: members and firms must provide a good quality and diligent service
Rule 4: members and firms must treat others with respect and encourage diversity and inclusion
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
20
Q
What do the current Rules of Conduct replace?
A
They replace the previous rules of conduct for members and firms and the 5 global professional and ethical standards
21
Q
What is rule 1 of the Rules of Conduct
A
Rule 1: Members and firms must be honest, act with integrity and comply with their professional obligations, including obligations to RICS
22
Q
What is rule 2 of the Rules of Conduct
A
Rule 2: members and firms must maintain their professional competence and ensure that services are provided by competent individuals who have the necessary expertise
23
Q
What is rule 3 of the Rules of Conduct
A
Rule 3: members and firms must provide a good quality and diligent service
24
What is rule 4 of the Rules of Conduct
Rule 4: members and firms must treat others with respect and encourage diversity and inclusion
25
What is rule 5 of the Rules of Conduct
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
26
What are the mandatory professional obligations for RICS members
As set out in Appendix A to the Rules of Conduct members must
- comply with CPD requirements set by RICS
- cooperate with RICS
- promptly provide all information reasonably requested by the Standards and Regulations Board or those exercising delegates authority on its behalf
27
What are the mandatory professional obligations for RICS regulated firms?
- cooperate with RICS
- promptly provide all information reasonably requested by the Standards and Regulations Board or those exercising delegates authority on its behalf
- publish a complaints handling procedure including an alternative dispute resolution provider approved by RICS and maintain a complaints log
- ensure all previous and current professional work is covered by adequate and appropriate professional indemnity cover that meets RICS approved standards
- if there’s a role responsible principally then arrangements must be made for their professional work to continue in the case of their death, incapacity or absence/inability to work
- display on their business literatures in accordance with RICS published policy on designation, a designation to denote that they are regulated by RICS
- report to RICS any matter that they are required to report under the rules for the regulations of firms
28
Why were the rules of conduct updated?
The RICS Rules of Conduct were updated in late 2021 to simplify standards for members and firms, reflect contemporary requirements like the use of technology and diversity and inclusion, and build public trust
29
What can a RICS member use to assist with ethical decision?
They can has the RICS ethics decision tree which provides a framework of questions a member can ask themselves when facing a situation where they are asked to act in a potentially unethical matter or situation
The RICS Regulatuon Confidential Hotline offers assistance to members with any ethical issues
30
What are the Main Principles of Prevention in the Bribery Act?
There are six principles of prevention companies should put in place:-
o 1. Proportionate Procedures.
o 2. Top Level Commitment.
o 3. Risk Assessments.
o 4. Due Diligence.
o 5. Communication.
o 6. Monitoring & Review.
31
What does the bribery act apply to?
The legislation applies to all UK Entities and includes associated Persons for example sub-consultants
and external advisors.
32
Under the Bribery Act, under what circumstance is a facilitation
payment permitted?
The only circumstance in which it is OK to make a facilitation payment is when you are under duress.
* For example if there is a real and present risk or danger to "life, limb or liberty".
* If you or your companions are under immediate physical threat.
* You should put safety first, make the payment and report the matter immediately.
* Or as soon as is practicable to your manager or your ethics compliance contact.
33
A contractor invites you to lunch to a restaurant and advises they've
got two Michelin stars and a wine list second to none. They say they
are keen to discuss the details of their tender they are about to submit
for the project you are working on. How would you respond?
* Going to what sounds like a lavish lunch paid for by a bidder in the middle of a tender process is
against Company policy and could be an offence under the UK Bribery Act.
* If this were the first time, it would be OK just to decline and explain that such an invitation is
inappropriate.
* However if this supplier is persistent, there is a red flag in that he wants to discuss things that he cannot
put in writing, so we should report this infringement.
34
What is the key legislation relating to Gifts & Bribery?
Bribery Act 2010
Aims to reduce bribery in the UK and aboard.
35
Define Bribery?
A bribe can be the giving, offering, promising or receiving of an advantage such as a payment, gift or a service for an action which is illegal or a breach of trust.
36
What are the 4 offences under the Bribery Act 2010
1. Bribing
2. Receiving a bribe
3. Bribing a foreign public official
4. Failing to prevent bribery
37
What are some penalties for Bribery?
The Bribery Act is policed by the Serious Fraud Office
If the Act is breached, there is a maximum penalty of 10 years in prison & an unlimited fine for individuals & companies.
38
What is CBRE's gifts and inducement policy
CBRE employees must avoid arrangements that:
Secure improper advantage or influence.
Create conflicts of interest.
Are illegal, excessive, or could be construed as an inducement.
Nominal gifts (e.g., pens) are acceptable. Avoid gifts/hospitality if the intent could be misconstrued.
Gifts/hospitality exceeding £100 must be reported to the Compliance Director (Nigel Anderson).
All gifts/hospitality:
Must not be cash or equivalents.
Must comply with laws/regulations.
Should not include overnight accommodation or travel.
Should be one-off and occasional.
Must not be intended to influence decisions.
Must comply with the expense policy.
39
What did you learn in your anti-bribery training
I learnt that there are different types of bribery that isn't necessarily monetary. Offering a work experience or a role to a client's daughter or son in order to then receive business from the client is also a form of bribery
40
What RICS literature refers to social media use?
Use of Social Media: guidance for RICS members 2024 v2
41
What is Private Indemnity Insurance
It protects surveyors/clients/third parties against negligent claims when there is a duty of care breached and a claim for damages arises. i.e. protects you for claims for damage made by a client as a result of negligent services/advice you offered.
42
What RICS document refers to PII?
RICS Regulation ‘Professional Indemnity Insurance Requirements’ Version 11 (1 July 2025)
43
What level of Professional Indemnity Insurance does the RICS require practicing surveyors to have?
It's reliant on turnover
for firms with a turnover of less than £100,000, they have a professional indemnity cover of at least £250,000 for each claim, for firms where turnover us between £100,001 and £200,000 they require cover for each and every claim of £500,000 plus, and for firms where turnover exceeds £200,001, they are required to have a cover of at least £1,000,000 for each and every claim.
44
What is the maximum level of uninsured excess required by RICS
Limit of indemnity: £10,000,000 or less Maximum uninsured excess: The greater of 2.5% of the sum insured, or £10,000
Limit of indemnity: £10,000,001 and above Maximum uninsured excess: No set limit
45
What should you do if you find out a confidential piece of information?
It shouldn’t be used for my own purposes. The client and sender should be made aware. The matter should be recorded in a note to the firms compliance director and disposed of securely
46
What must a complaints log show
The details, progress and outcome of any complaint
47
What are the minimum procedures for handling a complaint
Done in two stages:
Stage 1 - in house
- details issued of a valid complaint to whom the firms owes a duty of care
- quick, clear, transparent and impartially implemented
- must stated details of nominated person handling complaint (complaints handling officer)
- acknowledged in 7 days, investigated in 28
Stage 2 - ADR - Third Party
- must use an third party scheme that the firms has elected to use
- name must be provided to complainant - CEDR Centre for effective dispute resolution
48
When would the RICS get involved in handling a complaint
Where a member fails to respond to a complaint or prevents them from gaining access to an independent redress mechanism
49
How many hours of CPD is required annually
20 - members
48 - trainees
50% must be formal
50
What are the CPD requirements
Must maintain a relevant and current understand of rules of conduct rolling every 3 years
Must record all CPD on the RICS system by 31st Jan annually
51
What is formal CPD
All forms of structured learning with clear learning out comes and objectives
Professional courses, online training
52
What is informal CPD
Any self managed training that is relevant or related to my professional job
Private study, on job training
53
How can you determine if CPD is formal or informal
Through the RICS Decision Tree
54
What can be found on the RICS Decision Tree
Do you have sufficient facts
Is it legal
Is it inline with the rules of conduct
Have you consulted with the appropriate people to make an informed decision
Do you have clear reasoning
Have you assessed the risks involved
Would you be content for your actions to be made public
55
What legislation refers to social media usage
Use of social media: guidance for RICS members, 2024
56
What does use for social media: guidance for RICS members 2024 detail
Important of social media networks and reminds of the high standards of professional behaviour expected by RICS members
57
What does the updated guidance include for social media
Specifically addresses behaviour that might be considered unacceptable or inappropriate sexual behaviour
58
What social media posts are the RICS likely to investigate
Posts that involve:
- discrimination
Dishonesty
- abusive or threatening language
Bying harassment or victimisation of person/people
Pattern of frequent or a large number of concerning communication
Ignores previous advice or warnings
59
What social media posts are the RICS unlikely to investigate
- posts that are critical to an org
Use respectful and professional language
Are removed if requested
60
When may the RICS take disciplinary action against social media posts
Where they feel it may impact public confidence and trust in the profession
61
Does the RICS investigate personal posts
Yes particularly if extreme or highly offensive views are expressed
62
What is key legislation in money laundering
Money laundering, terrorist financing and transfer of funds regulations 2017
63
What are the types of dd checks
Customer dd and enhanced dd
64
What is required in a customer dd check
Identify client and verify identity based on a reliable independent source
Make reasonable endeavours to underside the beneficial owners of the client
For a company - name, company number and registered office addresss
Name of directors unless listed on a. Regulated market
Obtain info on purpose and intended nature of business relations and funding arrangements ts
65
When would you need to carry out an enhanced dd check
Someone in a high risk third country
Someone is a politically exposed person or a family member/ business associate of a pep
66
What is a pep and why do they need an enhanced dd check
They are people entrusted with prominent positions and require an enhanced check as their position and influence makes them more at risk of bribery and corruption
67
What further is required in an enhanced dd
More detailed examination of background, purpose and increased monitoring
68
What are the red flags of potential ML
Unwillingness or inability to provide identify docs
Changes to parties involved in transactions
Unusual trans for client
Payment in an usual currency
69
What's the difference between formal and informal CPD
Formal CPD is structured learning with clear learning objectives and outcomes
Informal CPD is any self-managed learning that is relevant or related to your professional role
70
Who regulates disciplinary procedures
RICS Standards and Regulations Board
71
What are the three levels of disciplinary action
1. Action by Head of Regulation
2. Disciplinary Panel (drawn from the independent Regulatory Tribunal
3. Appeal Panel
72
What happens in the first stage
Initial investigation by Head of Regulation (Nigel Clarke) who after investigating must complete one of four actions
1. Serve a fixed penalty notice - Rule 2 of Rules of Conduct in regards to Continuing Professional Development (CPD)
Professional Obligations under Rules of Conduct in regards to providing information to RICS
Rules 13 of the Rules for the Registration of Firms in regards to payment of Fees
2. Make a Regulatory Compliance Order
3. Refer the matter to a single member of the Regulatory Tribunal for consideration
4. Refer the matter directly to a Disciplinary Panel
73
Which of these are part of RICS' governance structure?
Governing Council
Privy Council
Standards & Regulation Board
RICS Board
74
What are the 5 principles of better regulation?
Transparent
Proportional
Accountable
Consistent
Targetted
75
In relation to Professional Indemnity Insurance, what is the minimum limit of indemnity for turnover under £100,000 (in the preceding year)?
£250,000
76
How many years after an instruction has been completed can a Professional Indemnity Insurance claim be made?
15 years
77
When did the Bribery Act 2010 come into force?
1 July 2011
77
What type of cover would you need to cover a claim brought after a firm or member ceases to trade?
Run off cover
78
What is the name of the RICS guidance on bribery and money laundering and when is it effective from?
Professional Standard - Countering financial crime: bribery, corruption, money laundering, terrorist financing and sanctions violations 2nd Edition
79
When did the new RICS Rules of Conduct take effect?
1 February 2022
80
How many new Rules of Conduct are there?
5
81
What are the RICS By-laws for
The RICS Bye-Laws provide the power for Head of Regulation and Regulatory Tribunal to make disciplinary and regulatory decisions including issuing disciplinary penalties and costs
81
How many Bye-laws are there and what are they
Bye-Law 1; Applications and Definitions
Bye-Law 2; Membership and Registration
Bye-Law 3; Designations
Bye-Law 4; Contributions to Funds
Bye-Law 5; Conduct
BYE-LAW 6: GOVERNING COUNCIL, OFFICERS AND STAFF
BYE-LAW 7: SUBORDINATE BOARDS, COMMITTEES AND GROUPS
BYE-LAW 8: PROCEDURE FOR GENERAL MEETINGS
BYE-LAW 9: ACCOUNTS AND AUDIT
BYE-LAW 10: GENERAL
82
What is a Royal Charter?
A document issued by the King as a patent granting right of power to an individual or a body corporate (in this case RICS)
It defines RICS’ objectives, constitution and powers to govern its own affairs
83
What is self-regulation?
RICS = one of a number of professions operating a self-regulation model = RICS members are not regulated by government but are internally monitored and inspected
RICS self-established standards of regulation meet, and in some cases surpass, the government’s own principles on better regulation
84
What must you do if a third party wants to access client files?
I must first get my client approval unless I am subject to a statutory duty that overrides client confidentiality such as the police or a HMRC investigation
85
What must you do if you overhear or find out confidential information?
This cannot be used for my own purposes. The client and sender should be advised of the error and the matter should be recorded in a note to the firm's compliance officer. I would then dispose of the confidential information securely
86
What would you do if you'd submit a bid for a client and overheard the person running the process at bar telling someone what the highest bid was and you know that you're not at the number?
I would not use this information as it's immoral and there's a chance the person recognises me and is lying.
I know that the bid submitted was prepared in mind of the client and their requirements and therefore, I would not change my bid.
I would report the matter to CBRE's compliance officer Nigel Anderson
87
What information is required by the RICS to register a firm
1. Type of business and staffing details
2. Name of the Responsible Prinicipal
3. Statutory regulated activities - such as for financial services
4. Nature of clients
5. Complaints handling procedure and records
6. PII details
7. Whether the firm holds client money
88
What are the requirements to set up a firm
RICS 'Rules for the regulation of firms' 2022
- 50% of members are RICS, must be regulated, 25% then can apply to be regulated
- Must nominate a responsible principal
- Complete an annual return on the RICS professional portal
- Use appropriate RICS logo in line with standard - only RICS members and firms
89
How should fees be agreed
Fees should be market facing and agreed on an ad hoc basis with clients and not undercut other firms
To decide a fee I would consider the amount of time and resources needed to provide a high standard of service
90
When is it appropriate to turn down work
- Not competent to undertake the instruction
- Don't have sufficient facts on the issue
- Proposed client will not sign TOE or AML
- Conflict of interest or personal interest
- PII liability cap cannot be agreed
- Advice is for a friend or on a pro bono basis and the PII will not cover work carried out on a personal basis
- Client is included on UK Government sanctions list
- Not content for actions to be made public
91
What's the difference in conflict avoidance and conflict management
Conflict avoidance is when you do not accept the instruction and conflict management is when you do accept but with steps agreed and in place to manage the agreement
92
What are the three types of conflict
- Party conflict
- Own interest conflict
- Confidential conflict
93
What is party conflict
Work on the same or related instruction for two different parties
94
What is own interest conflict
Relates to a personal interest
95
What is a confidential information conflict
Work between two parties that is confidential
96
What is informed consent
Can only be given in writing by the party if the person is entirely transparent about any material factors and sure that the party understands what they're doing
Should only seek informed consent if satisfied all parties are best served by doing so
97
How must you approach own interest conflicts
Own interest conflicts are where I am acting for a family member, close business associate or someone who you have a financial or personal interest or benefit (connected person)
Must not let interest intefere or influence your professional judgement. full transparent is required
Declare facts promptly and in writing before accepting any instructions
98
What is the limitation period for negligence
Limitation Act 1980
6 years from when the service was provided
6 years from when loss was suffered
Long-stop position of 15 years if the claimant didn't know a loss was suffered earlier or 12 years depending on the type of instruction or claim
98
What are some procedures surveyors must follow when handling client money
- Client accounts must be kept seperately and clearly idenfitifable
- Word client must be on the bank account and cheque book
- Interest payment agreed and accounts kept in credit
- Client must have their monies on demand
- Accurate accounts with a running balance available
- RICS regulatory review visits of inspection can be carried out on a routine 3 yearly bsis or by an accountant on behalf of the RICS
- Signatories must be agreed with authorised staff and two signatures should be required
- Discrete accounts are for single named client accounts only
99
How do you start a new practice
- Inform RICS of new practice by completing a firm details form
- appoint responsible prinicpal
- Register with RICS for regulation
- Arrange PII and send details to RICS
- Set up procedures for the requirements for client money handling including a protection scheme
- Register for RICS Valuer Registration Scheme if undertaking Red Book Global Valuation work
- RICS approval for complaints handling procedure
- Set up a complaints log
- Appoint a complaints handling officer
- Use a logo kit from the RICS
- Plan for succession/future running of business if sole practioner
- Ensure CPD logged online on RICS CPD management system and set up staff training plan
- Ensure completion of online RICS annual return at the end of each year
100
What is statutory compliance
- Must disclose business name
- Disability discrimination cimpliance
- Bribery Act 2010
- Appoint a money laundering reporting office
- H&S compliance
- Asbestos regisrer
- Fire stafety
- Data protection
- Inform HMRC for VAT and ta registration
- Comply with current employment law ( NLW, working hours...)
101
102
What sets out the governance for the RICS
RICS Regulations and by-laws
103
What is the royal charter
Requires RICS to promote the usefulness of the professional for the public advantage in the UK and other parts of the world
RICS APC 2025
flashcards
Decks in class (14)
# Cards
