1
Q
When was the RICS Founded?
A
1868
2
Q
When was the RICS granted their royal charter?
A
1881 by the Privy Council
3
Q
What is the Privy council?
A
The Privy Council is a body that advises the monarch on government business
4
Q
What are the benefits of gaining a royal charter?
A
- Self regulate
- Set it’s own rules and standards
5
Q
Who is the RICS accountable to?
A
- Its members.
- The general public.
6
Q
1) How many Members of the RICS.
2) How many Levels?
3) what are the Levels?
A
- as of Jan-25 - 112,000 members
- 4 Levels: FRICS, MRICS, AssocRics, Trainee
7
Q
How do you become a Fellow?
A
4/5 requirements:
1. 5+ years as MRICS
2. Professional achievement
3. Academic achievement
4. Leadership role
5. Raising profile of RICS
8
Q
Can you explain the current RICS Governance Structure and identify the 3 main Governing councils? What is the structure in the UK?
A
RICS is governed by various different internal councils and boards
- Governing Council (28 seats)
o Highest governing body
o Provides management and strategic direction.
- Standards and Regulation Board & Management Board report to Governing Council.
- 17 Specialist groups (outlining standards of competence & practice)
- UK Structure: 4 national associations and 10 regional boards.
9
Q
Who is the current RICS CEO
A
Justin Young
10
Q
Who is the current RICS President?
A
Nick Maclean who has taken over from Justin Sullivan following a regulatory review and earlier this year stepped down
11
Q
Who is the current RICS Chair of the Governing Council?
A
Nicolas Maclean
12
Q
Who is the current RICS President Elect
A
Maureen Ehrenberg
13
Q
What does the RICS do?
A
The RICS Promotes and enforces the highest professional standard and qualifications in Real Estate.
14
Q
What are the three main roles of the RICS
A
RAT
- Regulation: Protect consumers through strict Regulation of professional standards
- Advice: Leading source of info and independent advice
- Training: Maintain Highest Standards in education and Training
15
Q
Can you explain the Levitt Inquiry and tell me when it was?
A
- Alison Levit
- Independent inquiry requested in 2021
- Issue: Internal Turmoil, governance and financial concerns
- Outcome: Failings within the RICS:
o Lack of Clarity, Structure and Purpose of RICS Governance
o Levitt called for an immediate independent review (which led to the Bichard review (2022))
16
Q
Can you explain the Bichard Review, tell me what the main outcomes were and tell me when it was?
A
- Lord Bichard - independent review 2022
- Aim: Clarify the purpose of the RICS and improve the government structure.
- Lord Bichard made 36 Recs, focusing on 7 main areas:
- Leadership: New Standards & Regs board and New Management board.
- Governance: Simplified, clear structure and Maintaining Self-regulation
- People: Increased focus on public interest – created public interest panel
- Culture and Values: DEI panel -prioritise issues
- Member Service: Electing regional boards
- This led to the publication of “5 Future Foundations” in Nov-23
17
Q
What is the 5 future foundation? What was it a result off?
A
Result of the Bichard Review:
RICS published 5 foundations to counter previous issues: VAV Might Snitch
* Vision: Built environment that is sustainable, resilient and inclusive.
* Mission: Inspire Members, improve knowledge & Uphold Standards
* Strategic Goals: Lead on sustainability, attract diverse next gen.
* Values: Professional, Collaborative, Inclusive and ambitious.
* World Class Org: Efficient, effective and inspiring professional body.
18
Q
5 benefits of being an RICS member?
A
Steven Rylands Meets Keira Nightley
- Status: Client Confidence
- Recognition: Professional excellence
- Market Advantage: RICS Status and competitive advantage
- Knowledge: International standards, professional guidance and CPD
- Network: Global network of over 130,000 members
19
Q
What are the 5 rules of conduct?
And can you give me an example for each?
A
- Members and firms must be honest, act with integrity and comply with personal obligations including obligations to the RICS.
Conflict of interest – Always do a check to make sure there aren’t any.
Gifts – not to be influenced if offered a gift and to always look at it on a proportionality basis. Do not accept during instruction. - Members and firms must maintain their professional competences and ensure that services are provided by competent individuals who have the necessary expertise.
Only Undertake work if you are competent (Skill, Understanding, Knowledge)
Keep up to date CPD - Members and firms must provide good-quality and diligent service.
Understand client objectives and agree Scope of Work
Ensuring all the necessary DD is completed prior a valuation.
Fees? Recourse required, value, time, PII needed. - Members and firms must treat others with respect and encourage diversity and inclusion.
Training inclusive behaviours and unconscious bias
Being aware of the Equality act 2010 - 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.
Complaints Handling procedures.
Act responsibly when when asked to review numbers for a valuation.
20
Q
Why did the RICS bring in the new Rules of Conduct?
When did this come into effect?
What are the differences?
A
Rules of Conduct 2021 (effective in Feb 2022)
1. Simple structure, with clear Governance
2. Clearer examples
3. Putting 3 documents into 1:
* Rules of conduct for members
* Rules of conduct for firms
* 5 global and professional ethical standards
4. To include diversity and inclusion
5. More emphasis on sustainability
21
Q
What is in Appendix A of the Rules of Conduct?
A
It : Sets our “Professional Obligations” to be followed by members and firms.
Members must:
* Comply with CPD requirements
* Cooperate with RICS
* Promptly provide all info to RICS as requested (S&R board)
Firms must:
* Cooperate with RICS
* Promptly provide all info to RICS as requested
* Complaints handling procedures in place
* Adequate PII (professional Indemnity insurance)
* If Sole principle: make appropriate arrangements for work to continue in events such as death.
22
Q
What is you’re firm’s Code of Ethics?
Give me some examples of how you comply with these?
A
- Value our people, communities & environment
- Diversity and inclusion
- Sustainability
- H&S training
- Do business with integrity
- Avoid corruption and bribery
- Safeguard our business
- Data privacy
- Managing conflicts of interest
- Encourage speaking up
- Raise concerns with HR
- Whistle blowing
23
Q
What is the RICS decision tree?
What are some typical questions you may ask yourself?
A
It is a Framework of questions to ask yourself… when being asked to act in potential unethical situation.
Some questions:
* Have you got sufficient facts?
* Is it legal?
* In line with RICS Rules of Conduct?
* Consulted with appropriate people?
* Do you have clear reasoning?
* Ultimate test: Would you be content for actions to be made public?
24
Q
What triggers an RICS Disciplinary Procedure?
A
A complaint to the RICS - an employee / client / 3rd party
25
What is RICS' job in a Disciplinary Procedure?
RICS responsible for regulating the surveying profession to protect the public and uphold professional standards.
26
Which governance structure is responsible for Disciplinary Procedure's?
The Standards and Regulation board
27
What RICS material is relevant to Disciplinary Procedures?
What do they outline?
* RICS Guidance note – ‘Regulatory Decision Making’ – outlines the approach.
* RICS Regulatory Tribunal Rules, 2020 – Disciplinary process set out.
28
What are the different types of Disciplinary Procedures?
* Levels of Disciplinary Actions:
1) Action by Head of Regulation (initial stage)
o Fixed penalty (fine)
o Regulatory Compliance Order (low level breeches which can easily be corrected e.g. no CPD) - fine up to £2,000 or instructed to commence training.
o Refer mater to single member of Regulatory Tribunal
o Refer matter directly to Disciplinary Panel
2) Disciplinary Panel (drawn from independent Regulatory Tribunal)
o Made up of lay members (not part of the RICS)
o More serious breaches of conduct.
o Penalties such as: Regulatory compliance, Warning, Fine (unlimited), Suspension / Expulsion from membership / firm status, Publication of the result of hearing in Modus
3) Appeal Panel:
o Appeal the review of a decision of the above disciplinary actions
29
Can you describe the latest guidance on the use of social media within the industry?
I would refer to:
Use of Social Media: Guidance note for RICS members, Sep-2024 (version 2)
* Reminds members of the highest standards of professional behaviour
* Updated guidance addresses what is acceptable and not acceptable
30
In terms of Social Media, can you describe what offensive posts would or wouldn't be investigated?
* Investigate:
Discrimination
Dishonestly
Bullying
Abusive Behaviour
* Will not investigate:
Critique of an organisation
Use professional and respectful language
Are removed if requested
31
What are the Requirements to Register to the RICS as a Firm?
* RICS Rules of regulation 2022 (Annual Requirements):
Typical Rose Says No Can't Please Wendy
1. Type of business/ staffing details
2. Responsible principle
3. Statutory regulated activities
4. Nature of clients
5. CHP
6. PII
7. Clients’ money details
8. 50% Direcetors MRICS must register, 25% can apply.
9. Annual declaration of compliance with RICS.
32
What steps would you take should you set up a new practice within the industry?
RICS COMPLIANCE
* Inform RICS & Register with RICS for regulation
* Appoint Responsible Principle for RICS coms
* Set up client account for handling money
* Set up complaints handling procedure
* Set up PII
* Set up staff training!!!
STATUTORY COMPLIANCE
* Disclose business name
* Equality act 2010 compliance
* Bribery act 2010 compliance
* Health and Safety at work 1974
* Inform HMRC
33
What steps would you take should you close you're practice within the industry?
* Inform RICS
* Inform clients
* Return Client money
* Inform issuers and ensure run of cover for min 6 years
* Retail client files for 6 years
34
What are important considerations when you're negotiating a fee?
* Firms should avoid price fixing, aggressive fee cutting or collusion with competitors
* Fee’s should be Market Based, Agreed Ad Hoc with client.
* You should consider:
o Assess to resource requirement (Staff)
o Value
o Time
o Professional Indemnity Insurance (PII)
* You can vary level of service when renegotiating the fee
Sole practitioner: open tenders
35
What do you include within you're terms of engagement
o Points of Contact
o Scope of Work
o Proposed Fee
o Timeline of instruction
o Professional Indemnity Insurance - Vals
o Complaints handling procedure
36
What are the steps you'd take prior to commencing an instruction?
o Competence (SUK – Skills, Understanding, Knowledge)
o Conflict of Interest
o Issue and approve ToE
37
what are a few reasons to decline an instruction:
o Not competent - SUK
o Don’t have sufficient facts
o Conflict or personal interest
o Unsigned ToE
o Can’t agree PII liability cap
38
What is a Conflict of Interest?
Arises when a member or firms independence or impartiality is threatened due to the existence of a conflict between two clients.
39
What entities do you look into when conducting a conflict of interest check?
- Lender
- Asset
- Personal conflicts
40
What is informed consent?
- Consent given willingly by a party who may be affected by a conflict of interest.
41
What are examples of a conflict of interest?
1. Financial Interest
2. Personal Interest
3. Acting on both sides of a transaction
4. Commercial relationships
42
What types of conflict of interest can you get?
1. Party conflict – work on same or related instruction for 2 different parties
2. Own interest conflict – personal
3. Confidential information conflict - work between 2 parties that is confidential
43
What are the RICS guidelines around Conflict of Interest?
RICS Global Professional Standard: Conflicts of Interest, 2017
* Mandatory standard - came into effect Jan 2018
* Members or firms must not advise if conflict
* Unless informed consent is provided
44
What is dual agency?
- When an agent has a contractual relationship with both the seller and the buyer. From 2018 it has been banned.
45
You mentioned you put together ToE for a Office Acquisition. What RICS guidelines would you relate this too?
RICS Professional Standard: Conflicts of Interest – UK commercial property investment agency, 2017
* Set out high-level principles for CoI relating to UK investment agency.
* Incremental Advice:
o Investment purposes – asked to provide advice by another party on valuations related to sale to an existing instruction.
o Should only do this if consent is given / info barriers set up
46
If you identified a conflict. What what would you do?
There are options:
Conflict Avoidance:
* Do not act
* Upon receipt of all information
* Conflict is not manageable
Conflict management:
* Act but have written informed consent
* Put information barriers up
* Happy that impartiality isn’t threatened
47
Should you chose to manage a conflict of interest, what are the necessary steps you would need to put in place?
1. Conflict Avoidance: Irresolvable?
Is Conflict Irresolvable?
Impartiality is compromised: should be avoided or property managed
Decided to accept or decline
2. Written Advice to both parties (should you accept to manage conflict)
Disclose nature of conflict
Be clear as you can
Request written confirmation – must receive written informed consent
3. Manage Conflict: Information barrier
Password on files
Work on different floors / physically separated
Take calls in private rooms
Clear Audit trail
48
How long should a file be kept for?
6 years?
49
What happens if you receive confidential information that wasn't for you?
- Dispose of it securely.
50
What are examples of Irresolvable Conflicts of Interest?
* Personal Interest: A valuer valuing their own property
* Acting for both sides: Dual Agency
51
As an Agent, what separate guidance is there on conflict on interest?
RICS Professional Standard: Conflicts of Interest – UK commercial property investment agency, 2017
Set out high-level principles for CoI relating to UK investment agency:
* Dual Agency: where agent has contractual relationships with both buyer and seller – Should never be undertaken
* Multiple instructions: agent may make many intros to opportunities. However ones ToE signed, agent must be clear about their exclusivity. If exclusive: no coms with other clients. Non-exclusive need written consent.
* Incremental Advice: where agent is approached by other party to provide advice on e.g. on valuations related to sale to an existing instruction. Should only do this if consent is given / info barriers set up
52
How would you mange a conflict of interest?
1. Conflict Avoidance: Irresolvable?
Is Conflict Irresolvable?
Impartiality is compromised: Can act without bias
Therefore Avoid or Manage…
Decided to accept or decline
2. Written Advice to both parties (should you accept to manage conflict)
Disclose nature of conflict
Be clear as you can
Request written confirmation – must receive written informed consent
3. Manage Conflict: Information barrier
Password on files
Work on different floors / physically separated
Take calls in private rooms
Clear Audit trail
53
what can you tell me about confidentiality?
* Rule 1 - Code of Conduct States that:
* ‘M&F must protect confidential information
* When sending out a requirement, clients name is not disclosed.
* If info found from other party, you must not use it and report it to your firm’s compliance officer
* If a 3rd party wants to access – must get client approval
* Statutory – HMRC – can provide without client approval
54
What are the RICS bye laws
10 laws set by RICS to regulate themselves
Set out governance of the institution
Eg) Registration of firms and different levels
CONFIDENTIALITY
55
What is Complaints Handling Procedure?
A process firms use to receive, investigate, and resolve complaints from clients or other stakeholders
It is a Requirement to publish and must meet requirements of RICS Rules of Conduct, 2021.
56
57
WhaWhat is the relevant RICS guidance around complaints handling procedure
RICS Professional Standard: Complaints Handling 2016
58
When should a Complaints Handling procedure be issued?
within ToE.
If asked: same time as Terms of business
59
What is you're firms CHP process?
1. In House: JLL’s process is confirm receipt in 3 days, deal director responds in 15 days -> Ethics & compliance & Legal team -> Redress.
The RICS recommend 7 Days to acknowledge and 28 days to investigate.
60
What happens if the complainant isn't happy with you're in house approach? Can you Explain the process and what you're firm's procedure would be.
the Second Stage involves an alternative disputes resolution. this is going through an independent redress scheme. My firm has chosen the RICS Dispute Resolution Service.
61
Who handles complaints within your company?
Your complaints handling officer
62
What would happen if you received a complaint about a colleague?
Tell your complaints handling officer
63
Can you explain the requirements for Continued Professional Development? Any recent updates on CPD?
* 4 Requirements:
1. Members must undertake 20 hours CPD per year
2. 10 hours must be formal
3. Members must maintain familiarity with Rules of Conduct every 3 years – professionalism module
4. Members must submit by 31st January, each year.
* Key updated May 2025: flexibility, carry forward days.
64
What are the different types of CPD?
* Informal – self managed learning. e.g. Podcast
* Formal – structured learning, clear learning objectives e.g. webinar
65
Why would someone need Professional Indemnity Insurance? and how could you avoid claims for this?
To protect yourself from a negligent act. Failure to act with a duty of care.
To avoid Negligence:
o Market Knowledge is up to date
o Understand the Client’s objective
o Undertake in accordance with RICS Professional standards and practice info
o Take (ph) fotographs and detailed notes
o You are Competent.
66
Is Professional Indemnity Insurance needed for pro bono work?
- Yes, as you can be sued even if your not paid a fee.
67
What would you do if your friend asked you for pro-bono advice?
- You can if your PII will cover it - Decline if not
- Assess conflict and decided.
-Get them to come into the office, make it more formal, get them to sign TOE.
68
What's the RICS Guidance for Professional Indemnity Insurance.
RICS PS: PII Requirements, 2024
Tranches
Run off cover
RICS run-off pool
69
What legislation is there for negligence?
Limitation Act 1980
70
What is the limitation period for damages under the limitations act 1980?
- Contract – 6 years from the date of the negligent act.
- Tort – 6 years from the date the claimant suffered the loss.
Example: Misleading information – on marketing info
Avoiding this with clear objectives in ToE, competence check etc
71
What is an example of Negligence?
Misleading information - on valuation report.
Avoiding this with clear objectives in ToE, competence check etc
72
When can a claim be made for negligence?
Contract law: 6 years from when the service was provided
Tort law: 6 years from the date the claimant suffered the loss.
73
Difference between Contract Law and Tort
Contract law: Duties that are voluntarily assumed through an agreement.
Tort law: Concerns duties that are imposed by law to prevent harm.
74
What is negligence
When there is breach of duty of care which is results in harm or loss.
75
Do you know any case law, regarding negligence?
Yanni vs Evans (1981):
Resi valuer instructed by mortgage lending institution could owe a duty of care to a mortgagee purchaser relying on the valuation
76
What is Professional Indemnity Insurance?
* Negligence claim
* Protects clients, surveyor & 3rd parties, should Duty of care have breached
* Claim for damages arises
* All members must have adequate and appropriate PII
* Needed – ‘pro-bono’ (unpaid) work
77
What is the professional guidance around PII Cover?
RICS Professional Indemnity Insurance Requirements, 2024
78
What are the PII ranges? in terms of minimum requirements and maximum level of uninsured excess required?
Firms turnover Min level of indemnity
£100,000 or less: £250,000
£100,001 - £200,000: £500,000
£200,001 or above: £1,000,000
79
What is the the maximum level of uninsured excess required by the RICS
Limit of indemnity Max uninsured excess (How much firms should pay)
£10m or less 2.5% of sum insured / £10,000
£10m or more No limit set
80
What is the difference between a PII Limit and a liability cap
PII limit:
- maximum amount an insurance policy will pay out for a claim
- This is usually across all instructions
Liability Cap:
- limits the maximum amount you (your company) are liable for in damages to another party.
- Varies from transaction to transaction.
81
What is a Liability cap?
Contractual agreement that a client can only make a claim up to the
amount agreed, even if the law would otherwise award a greater sum in damages.
RICS Recommend this
82
If you were a new business, how would you know you're minimum level of PII?
Estimate you're turnover
83
What is you're firm's PII cover?
Confidential.
If pushed, between 3-6 million pounds
84
What is a Run of Cover? What is the minimum term and amount of cover for consumer and commercial?
* Extends PII protection after a firm's cessation of trading.
* Min 6 years (recommended 15 years)
* Consumer: minimum of £1,000,000 of aggregate cover
* Commercial: what a firm would consider adequate
* Claims can be made up to 15 years after work is undertaken
85
What guidance have RICS given for PII?
RICS Professional Indemnity Insurance Requirements, 2024 (Don’t mention)
* PII details are set out here
* Latest Edition: changing in policty wording written on a full liability basis.
* Assigned risk pool has been renamed the un-off pool
86
Can you explain how a firm would handle their client' money?
What are the 6 areas of good practice?
RICS Professional Standard: ‘Client Money Handling’ 2019 (effective 2020)
* 6 main areas of good practice:
Pokémon are responsible in creating hobby's.
o Payments from client accounts
o Accounting records and Controls
o Receipts of client money
o providing INFO to clients
o Compliance
o Holding Client money
87
What are the key factors to consider when handeling client's money?
* Key Factors to consider:
1) Keep accounts separate/identifiable (use the word “client”)
2) Client must be able to have monies on demand (two signatures recommended)
3) Agree on interest payment procedures.
4) Kept in credit.
5) Keep accurate records and audit annually.
88
What are the different types of monies you can handle for a client!
Rent
Holding deposit
Service charge
89
What is a Bribe?
Giving, offering, promising or receiving of an advantage such as a payment or gift for an action that is illegal.
90
has there been any guidance on bribery?
What are the 6 principles?
Bribery Act 2010
* What is it: The act aims to reduce bribery in business within the UK and abroad.
* What are the 6 principles:
1. Proportionality
2. Top level commitment
3. Risk assessment
4. Due diligence
5. Communication
6. Monitoring and review
91
What are the different types of bribery?
1. Bribing
2. Receiving a bribe
3. Bribing a foreign public official
4. Failing to prevent a bribe
92
What is the penalty for bribery? Who police's this? Can you give me an example?
o Policed by the Serious Fraud Office
o Maximum of 10 years in prison / unlimited fine for member and company
o Rolls Royce having to pay a settlement
93
What is Money Laundering?
Money laundering is legitimising the proceeds of crime.
94
Any Regulation for Money laundering?
What are the key provisions?
Legislation: Money laundering, Terrorist Financing and Transfer of Funds regulation, 2017 (amended 2023)
Key Provisions:
o Must have written AML and terrorist financing risk assessment
o Systems and controls to address ML
o Provide staff training
o Comply with requirements relating to Politically Exposed Persons (PEPs)
o Comply with new customer and enhanced due diligence requirements
o AML checks must be undertaken to confirm identity.
o AML checks much check source of funds – before contracts exchange
Other provisions:
* LIMIT OF 10,000 EURO in cash – JLL cashless
* Ongoing business relationship – should be regularly monitored
* Detailed record keeping of procedure
* Board member must be appointed to take responsibility for all compliance
95
What sort of money laundering checks would you do?
1) Customer Due Diligence (CDD) - Check on client, LL, tenant,
2) Enhanced Due Diligence (EDD) – additional evidence and monitoring / more about background of client/potential client
96
AML: what sort of Costumer DD can you do? what does each entail?
Definition: Checks on clients, landlords, tenants, sanctions list
Typical requirements for money laundering checks for CDD:
Private Individual:
- Passport / driving license
- Bank statement
- Proof of Address (min 3 months)
Private Limited Company
- Certification of incorporation
- Full name, Registered office, Business address
- Names of all directors and shareholders +25%.
Public Accountable Body
- Government ownership / control
Public Listed Company
- London stock exchange listing
97
AML: when would you do Enhanced DD checks?
* High Risk Countries
* Politically exposed Person (prominent public function, higher risk in terms of bribery and corruption).
* Looking for Red flags / Unusual patterns of transactions e.g.
o Will not provide ID documents
o Unexpected urgency
o Payment of fees in unusual currencies
o Changes of Parties involved in transactions
98
What are examples of Enhanced DD?
More detailed examination of background, purpose of the transaction, source of funds, increased monitoring
99
Who's your firm's Ethics, Compliance and Money handling officer?
Marie Bolton
100
What is the penalty for not complying with money laundering regs?
- Assisting: Max 14 year prison sentence and/or unlimited fine.
- Tipping off (warning someone): Max 5-year prison sentence.
101
Who would you report to should you identify money laundering?
My firms Ethics and Compliance, and Money-laundering officer -
Marie Bolton
102
what was the most recent update the estate agency AML?
* May-25: govt expanded AML regs to cover all rental agreements (all letting agents and private landlords required to verify tenants and landlords.
* Previous €10,000/month threshold has been abolished.
103
What is you're firms AML procedures?
We use an internal data base to assess:
1. Identify the customer
2. Understand company structure
3. Identify ultimate owner
104
Professional standard for Bribery, Corruption, AML?
Can you explain the different sections?
RICS Professional Standard: Countering Bribery, Corruption, Money Laundering & Terrorist financing, 2019 – 2nd edition incoming.
- Part 1 – Mandatory
- Part 2 – Guidance
- Part 3 – Supplementary Guidance
PART 1
* Bribery and Corruption
Not offer or accept anything that’s constitutes to a bribe
Have procedures in place to comply with law
Report suspicion
Retain records
* Money Laundering & Terrorist Financing
Don’t facilitate ML & TF
Have systems in place to comply with laws
Report suspicion
AML checks
PART 2 (Guidance) PART 3 (Supplementary Guidance)
Practical Guidance SUPPLEMENTARY Guidance
- Written policy in place - Establishing a Risk based approach:
- Encourage transparency - Who you act for?
- Set up gifts register - What you doing?
- Why you being asked to do it?
105
What is your firm's gift policy?
* Up to £100 is acceptable (line manager approval needed)
* Over 200 needs to be approved by legal and compliance
* Hospitality up to £1,000 acceptable (Anything over must be approved)
* Over £2,000 required approval from legal and compliance.
* No cash business
* Doesn’t accept vouchers
* Gifts discouraged
* Gifts register – create transparency / record
* During instruction – avoid corporate hospitality
106
Considerations for you're opinion of value?
* Must not be swayed to change except if new market evidence is disclosed
* Which must be verified
* Can change at draft level
* Not after final report issued
107
what should a soul practitioner do when complaints handling
appoint a member from another firm as a complaints handling officer
108
What is the RICS 'Our sharing the Future' initiative
* RICS undertook 12 UK roadshows in 2024 with presential team and governing council.
* To consider important issues
* Key themes raised:
o Next gen – skills gap
o Value: brining RICS to you
o Maintaining high standard
109
How do you quantify negligence
It would depend on the value of the damage
110
Code of conduct: Rule 1
- Definition
- Example
1. Members and firms must be honest, act with integrity and comply with personal obligations including obligations to the RICS.
Conflict of interest – Always do a check to make sure there aren’t any.
Gifts – not to be influenced if offered a gift and to always look at it on a proportionality basis. Do not accept during instruction.
111
Rules of Conduct 2021: Rule 2
- Definition
- 2 examples
2. Members and firms must maintain their professional competences and ensure that services are provided by competent individuals who have the necessary expertise.
Keep up to date CPD
SUK – competent? (Skill, Understanding, Knowlege)
112
Rules of Conduct 2021: Rule 3
- definition
- 3 examples
3. Members and firms must provide good-quality and diligent service.
TOE, Establishing client’s objectives
Ensuring all the necessary DD is completed prior a valuation.
Fees? Resource required, value, time, PII needed.
113
How do you negotiate a fee?
- Determine on an Ad Hoc basis
- Avoid any price fixing
- Market Evidence
- Resource required,
- Staff needed,
- Time,
- PII needed.
114
Rules of Conduct 2021: Rule 4
- Definition
- 2 Example
4. Members and firms must treat others with respect and encourage diversity and inclusion.
Training inclusive behaviours and unconscious bias
Being aware of the Equality act 2010
115
Rules of Conduct 2021: Rule 5
- Definition
- 1 example
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.
Complaints Handling procedures
116
What is Regulatory compliance order
Low level breaches
Written doc staying terms that members and firms must take actions in a certain time period and agreement to pay a fine.
117
How do you distinguish the difference between informal and formal CPD
Look at the CPD decision tree:
- does it provide formally structured program
- does the learning o jectoves impove your techincal skills
118
What is the guidance for PII
RICS. Professional indemnity insurance requirements July 2024
119
Difference between Professional standards and practice info
PS: sets out Mandatory requirements that must be complied with and recommended best practice that should be complied with, for members and regulated firms.
Practice info: info to support practice knowledge and performance of member’s and regulated firms. It does NOT contain advice.
Alerts: key tool for warning for altering professionals of current concerns.
120
What is the RICS Motto
Est modus in rebus = ‘There is measure in all things.’
121
Firms General Terms of Business
- Services Provided
- JLLs objectives as a firm
- Complains handling procedure info
- Definitions
- Client obligation
- Liability
- Data Protection
122
Benefits of RICS regulation for firms
GPS
* ‘Gold standard’ of quality control for clients
* Professionalism
* Security
123
If you are a sole practitioner and you are not competent to carry out an instruction, what would you do?
Inform them that you are not competent and tell them to look on the RICS find a surveyor.
124
How would you assess the tenant strength without the use of Credit Safe.
Net Profit Test
- 3 years of audited accounts
- 3 times the contracted rent for 3 consecutive years
Net assets test:
- 5 times the given amount
125
3. What are the ratings within a D&B Report?
* Financial strength – Based on Tangible Net Worth from the latest financial accounts (e.g 2A). Goes from 5A to H.
* Risk Indicator – Derived from the D&B Failure Score but also takes into account expert rules and overrides. Goes from 1-4 (4 highest risk). Expert rules include:
1. Minimum data
2. High risk parent
3. Detrimental legal events
4. Possible fraudulent activities
126
What challenges do the RICS face
- Adaption to technology (data and AI)
- Sustainability (built environment accounts for 40% of carbon emissions)
- Diversity and Inclusion (less than 20% of members in UK&I are women)
127
What is included within a D&B report?
* Credit Rating
* 5 years accounts
* Profit and loss account
* Balance sheet
* Parent/subsidiary company details
* Director’s names and addresses
* UK Govt sanctions
* 5A1 = Tangible Net Worth of £3bn
128
What is the D&B rating made up off? 5A1
* Financial strength – Based on Tangible Net Worth from the latest financial accounts (e.g 2A). Goes from 5A to H.
* Risk Indicator – Derived from the D&B Failure Score but also takes into account expert rules and overrides. Goes from 1-4 (4 highest risk). Expert rules include:
1. Minimum data
2. High risk parent
3. Detrimental legal events
4. Possible fraudulent activities
129
What is a Non-Disclosure Agreement?
What does this create?
What happens if this is broken?
* Legally enforceable contract relating to sensitive information
* Create confidential relationship
* Party harmed by breach of NDA can take legal action (Seek damages for losses incurred).
130
What the difference between a professional statement and a professional standard
Professional Standards are replacing professional statements because the RICS are trying to ensure these obligations are mandatory
131
Can you give me an RICS Practice Alert Example?
Members have a legal, professional, and regulatory obligations when providing expert witness services.
132
What is the regulation for money laundering?
The money laundering, Terrorist financing and transfer of funds regulation 2019 relevant for
133
What should members do in relation to money laundering and terrorist financing?
Ensure that they don't do it?
134
What do you do if you set up a sole practice?
Chose a responsible principle, and ensure another company handle your complaints and ensure I have elected a person from another company to carry out my works in the case of death or illness.
135
What is a contact officer?
Main point of contact between RICS and your firm, and they ensure that the annual return is provided.
136
what is the RICS Run-off pool?
Firms that are unable to obtain run-off from their incumbent insurer or the open market will be able to apply for coverage to the Run-off Pool.
137
What is Ethics?
Moral principles that govern a person's behaviour
138
Are you familiar with the concept of a contact officer?
Responsible principle:
Person elected by a regulated firm who laisse with the RICS
139
Who do you report Anti-money laundering to?
The National Crime Agency
140
What are the most common rule breaches?
- CPD
- Handling monies
- Breaches of professional behaviour
141
Why must a firm remain insolvent?
- Doesn’t look good handling client’s money if you cannot handle your own.
- May mean you are more likely to take bribes.
142
If you were instructed on a mandate and you weren't competent to comply with this, what do you do?
You could refer to the Consumer Rights act 2015, with gives a cooling off period for 14 days where you can cancel the ToE
143
Can you tell me about the CPD you did on RICS Red Book Compliance?
Audit trails and regulatory requirements.
144
Can you tell me about your HSSE CPD?
Health, Safety, Security and Environment:
- Responsability
145
Can you tell me about RICS Matrics?
RICS early careers community
146
Can you tell me about your asset repositioning CPD?
Positives of Asset repositioning:
80% of all buildings are built
130m sq ft of office space is vacant across the UK - much of which is obsolete
147
Why is it important for an rics firm to be solvent
Less likely to be bribed
Doesn’t reflect well if you can’t manage own finances
148
What is the RICS Client Money Protection Scheme?
For claims from clients providing last resort protection in instances where an RICS regulated from is unable to repay client money.
149
What is your companies Redress scheme?
RICS Dispute Resolution Service
Property Ombudsmen
150
Members of an appeal's panel
Lay members
151
Who is ultimately responsible for corruption?
The company, unless they have proof that adequate policies and procedures were in place to prevent bribery
152
What is the Proceeds of Crime Act 2002? How is this relevant to RE?
Government can recover criminal money and other assets which are deemed to be the proceeds of crime.
153
What are the 3 main offences of the Proceeds of Crime Act, 2002
1. Concealing: disguising criminal property
2. Arrangements: facilitating use/control of criminal property
3. Acquisition use and possession: acquiring/having possession of criminal property
154
What does the latest edition (July 2024) of the RICS PII Requirements material set out?
Policy wording on full civil liability basis (other than asbestos, fire, EWS1, FRAEW, pollution – where insurers are permitted to provide cover on negligent act, error of omission basis)
Assigned risk pool – now called Run-off pool
155
What are the proposed changes to CPD
Ensuring CPD topics are relevant
Mandatory training on Ethics, Sustainability and AI
156
New AML professional standard, what are the new changes
Focus on Crypto currencies and Ai.
APC - BK
flashcards
Decks in class (15)
# Cards
