What does a complaints handling procedure include?
- The RICS provides a model form
- Process must include a redress mechanism
- Details of the policy should be issued to the client with the Terms of Business
- Clear, quick, transparent and impartial and free of charge within the first stage
- Names and contact details of the nominated investigating person must be stated
- The complaints must be investigated within 28 days
- All complaints, their progress and outcomes must be recorded
- We must note the need to advise PI insurers of a complaint immediately
- The process must have two stages as a minimum:
Stage 1 - consideration of the complaint by a senior member or complaints handling officers
Stage 2 - if the issue isn’t resolved, complaint is referred to an independent third party with the authority to award redress. The complainant may be expected to contribute towards costs at this stage
What’s an independent redress scheme?
A consumer scheme designed to handle small issues that would be disproportionally expensive to take to court. Judges in favour of the complainant, it is binding. If it judges in favour of firm the complainant can take to court. RICS must specify which scheme they want to use.
What to do if you revive a letter of complaint?
Acknowledge receipt and forward to the designated complaints handler as per the compliant handling procedure, providing additional info as required.
The importance of informing the PI insurance providers immediately.
What’s the Clients Money Protection Scheme?
A money protection scheme operated by RICS
Contains provision for any member of the public to be reimbursed their direct loss of funds when using an RICS regulated firm.
This is provided through RICS insurance policy
Purpose of the joint names in a clients account?
For the purpose of dual authorisation
What are continuous professional development requirements?
Members must undertake and record appropriate lifelong learning.
On request by the RICS they must provide evidence that they have carried out the CPD to maintain and improve their levels of professional competence.
How many hours CPD are required?
Minimum of 20 hours per year, half, 10 must be formal. Recorded via the RICS online management system.
What sort of activities does CPD include?
It has to have a clear objective to your current role.
It can be formal, web based training, structured assessments, formal seminars, training to others.
It can be informal, private reading, internal CPDs and job shadowing
How to keep up to date with topical issues?
Mailing lists for CPDs
Employers research and development team send a weekly digest
Exchange industry articles and relevant information with colleagues
Updates on RICS websites and linked in
What is your CPD strategy?
Meet with manager twice a year to review my career development plan and objectives.
Building CPD around these objectives and personal interests and targets.
What’s PII?
Professional indemnity insurance
Purpose of Professional Indemnity Insurance?
Financial cover in the event a client suffers financial loss as a result of a breach of professional duty - neglect errors or omissions
What benefits does it provide for the professional vs the client?
The professional is protected from financial loss and the firm does not have to meet the claim from their own assets and resources.
The client are able to recover their financial losses
On what basis is PII underwritten in the UK?
On a claims made basis
This means the insurance policy that is in place at the time the breach is discovered is responsible for providing the indemnity. Not the insurance policy in place when the breach was made.
Requirements of PII set by RICS?
Policy cover must be made on an each and every claim basis
It sets out minimum levels of indemnity
Sets out maximum levels of uninsured excess
Run off cover must be in place for atleast 6 years
Policy should include cover for past and present employees, directions and partners
What measures should be taken to try and avoid PI claims
Keep full and detailed records of meetings and conversations
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
If you made a mistake in your cost plan what would your insurance company expect?
For you to notify them and comply with any conditions and procedures set out by the insurance policy
How can you limit your liability when agreeing terms of appointment with a client?
Base the appointment on a reasonable care and skill rather than fitness for purpose which is more onerous
If the clients requirements are performance based, this may imply fitness for purpose. It is advisable to request a clause limiting the appointment to reasonable skill and care only
Run off cover must be in place.
Execution of the appointment under hand will result in a reduced liability period of 6 years instead of 13.
Main elements included in a fee proposal?
Terms and conditions
Scope of services
Exclusions
Assumptions
You’ve done a fee proposal, but into the job you have underforecasted resources, can you go back to the client for more money.
If the project services, scope or value increases than you could go back and request more fee
If scope of works has remained the same, highlight the mistake and highlight the additional work that needs to be carried out and don’t request fees but carry out same service levels
A client agreed services that are to be provided verbally, what do you do next?
Follow up with a formal letter including terms and conditions, scope of services, fee
A client gives you a lump sum fee before going on holiday, what do you do?
Place funds in a separate uncertified client account and agree drawdown of monies against the services being provided with the client
What do you understand about conflicts of interest?
A conflict of interest is where someone in a position of trust has competing personal or professional interests making it difficult for them to fulfil their duties impartially.
An existing relationship will result in reduced impartiality and charted surveyors have an obligation to make clients aware of this and if necessary decline work opportunities where a conflict of interest occurs
Main principles of the bribery act?
Offences are:
Making a bribe
Reviving a bribe
Bribery of a foreign public official
Failure of a corporate entity to prevent bribery on its behalf
It applies to all UK entities and includes associated persons for examples sub consultants and external advisors
The six principles of prevention companies should put in place:
Proportionate procedures
Top level commitment
Risk assessments
Due diligence
Communication
Monitoring and review
