1
Q
Why do you want to become a member of the RICS?
A
- Highly regarded profession
- Signifies high ethical standards
- Career progression
- Professional credibility and trust
- CPD
- Recognition
2
Q
What is the role of the RICS and its public interest remit?
A
Role = Set and enforce high standards, qualification and ethics for professionals in the industry
Public interest remit = protect the public, uphold confidence in the profession and maintain high professional and ethical standards
3
Q
What are the key functions of the RICS?
A
To enforce high standards of professionalism
4
Q
What is a royal charter?
A
A document granted by the monarchy that establishes the institution as an independent legal body dedicated to acting in the public interest
5
Q
Who is the current RICS president
A
Nick Maclean
6
Q
What do you understand about the term self-regulation
A
Where an organisation sets, monitors and enforces its own professional, ethical and technical standards rather than being controlled by the government
7
Q
Can you tell me what you understand by the principles of better regulation?
A
- Proportionality (fit for purpose)
- Accountability (justifiable to stakeholders)
- Consistency (joined-up)
- Transparency
- Targeting
8
Q
what is a bye-law?
A
A rule made by society to control the actions of its members
9
Q
Give an example of one of the RICS bye-laws
A
Rules of Conduct
10
Q
Explain the new RICS Rules of Conduct - What do they replace?
A
Updated to help the profession respond to new risks and opportunities
Changes include;
- Simpler structure
- Clear examples
- Focuses on respect, diversity and inclusion
- Understanding evolving technology
-Tackling global challenges
Replace the previous Rules of Conduct for Members, Rules of Conduct for Firms and the Global Professional & Ethical Standards
11
Q
When did the new rules of conduct take effect?
A
2nd February 2022
12
Q
Who do the rules of conduct relate to?
A
Members and firms
13
Q
What are the ethical principles that the Rules of Conduct are based on?
A
Integrity
Accountability
Objectivity
Professional competence
Confidentiality
Respect
Responsibility
14
Q
What are the 5 Rules of Conduct
A
1 - Members and firms must be honest, act with integrity and comply with their professional obligations including their obligations to the RICS.
2 - Members and firms must maintain their professional competence and ensure services are provided by competent individuals with the necessary expertise
3 - Member and firms must provide a good quality and diligent service
4 - Members and firms must treat others with respect and encourage diversity and inclusion
5 - Members and firms act in the public interest, take responsibility for their actions, act to prevent harm and maintain public confidence in the profession
15
Q
Give an example behaviour for each rule of conduct
A
1 - Do not mislead other by actions or omissions, or by being complicit in the actions or omissions of others
2 - Members and firms only undertake work that they have the knowledge, skills and resources to carry out competently
3 - Members and firms must understand clients’ needs and objectives before accepting any professional work
4 - Members and firms must respect the rights of others and treat others with courtesy
5 - Members and firms respond to complaints made against them promptly, openly and professionally
16
Q
What are the core professional obligations of firms and members to RICS?
A
- Comply with CPD
- Must cooperate with RICS
- Provide all information reasonably requested by the standards and regulation board
17
Q
What disciplinary procedures can the RICS impose?
A
Regulatory Tribunal Rules
- Fine
- Regulatory tribunal
- Expulsion
18
Q
In what circumstances can the disciplinary procedure be imposed
A
When there is evidence that the regulated member has fallen short of the RICS standards. e.g. professional misconduct or competence
19
Q
When did the RICS last update their disciplinary panel rules?
A
2nd March 2020
20
Q
What do you understand by the term professional practice?
A
The application of specialised knowledge, skills and ethical standards within a specific field or profession
21
Q
What money laundering regulations or legislation are you aware of?
A
Proceeds of Crime Act 2002
Money Laundering Regulations 2017
RICS professional guidance - Countering bribery, corruption, money laundering, terrorist financing
22
Q
What is a red flag of money laundering
A
- Unusual or secretive clients
- Unusual transaction/source of funds
- Sudden change in instruction
- Third party funding
23
Q
What bribery legislation are you aware of?
A
Bribery Act 2010
24
Q
what is a bribe
A
Money, gift or favor offered or given to someone in a position of trust or authority to improperly influence their actions to carryout something dishonest or illegal
25
The Barn Ardens Grafton
Why are written terms of engagement important?
- To establish a clear, documents and professional agreement between the surveyor and the client
- Legal contract
- Defines scope of work
- Aims to avoid misunderstandings
26
The Barn Ardens Grafton
What did you include in your terms of engagement?
- The client/valuer identification
- Address of property
- Scope of work
- Time frame
- Fee
- Expenses
- Complaints handling
- PII
- How client data will be used
27
The Barn Ardens Grafton
What would you do if a client asked you to start work before terms were signed?
This is a risk.
- Politely decline and explain risk (i.e. against RICS professional obligations)
- Advise client works can commence once documentation has been signed
28
The Barn Ardens Grafton
How would you deal with a change to scope after the instruction has started?
- Manage the change effectively, minimise disruption and maintain professional competence
- Document communications in writing
- Confirm adjusted fee if required
29
The Barn Ardens Grafton
What RICS guidance related to terms of engagement?
Setting up your initial agreement with clients
30
The Barn Ardens Grafton
What was your fee structure?
£125 / hour
Estimated time frame 5 - 10 hours
31
The Barn Ardens Grafton
How did you manage your clients expectations throughout the job
- Maintained regular communication
- Request feedback
32
The Barn Ardens Grafton
How did you provide communication to your client
- Ensure it is regular
- Site meeting face to face
- Emails and telephone calls
33
The Barn Ardens Grafton
How do terms of engagements reduce the risk of disputes
- Define scope and limitations
- Assumptions are set
- Liability (PII)
- Complaints handling
34
Sandfield Farm
What is a conflict of interest
Actual, potential or perceived risks arising from party conflicts, personal interest or confidential information
35
Sandfield Farm
What are the different types of conflicts
1 - Party - acting for 2 parties with competing interests
2 - Own - Your personal or firm interest
3 - Confidential - posessing confidential information from another client that could influence the instruction
36
Sandfield Farm
Why are COI checks important before accepting an instruction?
- Mandatory
- Ensures compliance with RICS professional standard Conflicts of Interest July 2023
- Maintain high ethical standards
- Independant advice
37
Sandfield Farm
What RICS guidance governs conflicts of interest?
RICS professional standard - Conflicts of Interest July 2023
38
Sandfield Farm
How do you carryout a conflict check within your firm
internal database
Outline information
- Client name
- Work to be carried out
- Approximate location
- Name of surveyor
39
Sandfield Farm
How does your firm record conflicts
On the project/client file
40
Sandfield Farm
What would you do if a conflict was identified after the instruction had started?
Inform the client and get informed consent if needed
41
Sandfield Farm
what is informed consent?
When a client agreed to proceed with an instruction despite a disclosed conflict of interest.
Must be agreed in writing
42
Stancombe Farm
Why are offers confidential in property agency?
- Maintain client confidentiality
- Prevent misleading practices
- Maintain negotiating power
- Protects sensitive details
43
Stancombe Farm
What information are you allowed to disclose to other bidders?
- Existence of other offers
- General guide number
- Position of the other buyer
44
Stancombe Farm
What would you do if the client asked you to disclose the offer amount?
- Offers should be reported to the client.
You should;
- Advise them on the implications and conditions of offers
- Report them in a timely manner
45
Willow Hill Farm
Why was it important that you did not undertake the valuation yourself?
Not qualified
46
Willow Hill Farm
What are the risks of undertaking work outside your professional competence
Not having the necessary expertise
47
Willow Hill Farm
How do you determine whether you are competent to undertake a task?
Ethics decision tree
qualifications
48
Willow Hill Farm
Why did the valuation need to be carried out by a registered valuer
It was not exempt from the Red Book
49
Willow Hill Farm
How did you explain this to the client?
50
Willow Hill Farm
What if the client insisted that you carry out the valuation yourself?
Explain further that i am not suitably qualified to carry out the valuation
51
Willow Hill Farm
Why is recognising your professional limitiations important?
- High standard of service to client
- Comply with professional obligations
52
Willow Hill Farm
What role did you play in supporting the valuation?
- I collected comparable evidence in preparation for the qualified surveyor to analyse
- Collect information to be inserted into the appendix, including maps and flood risk plans
53
What are the penalties for accepting a bribe
Individuals - expulsion, imprisonment and fines
Organisation - fines, removal of registration
54
What are the penalties for being involved in money laundering
- First breach = Caution
- Second (within 10 years) = fine
- Regulatory action
- Disciplinary panels can charge costs to firms
55
What constitutes as an offence under the Bribery Act 2010
- Active Bribe = offering, promising or giving
- Passive Bribe = requesting, agreeing or accepting
- Bribery of a foreign public official
- Failure to prevent a bribe
56
What constitutes as an offence under the current money laundering regulations
Where a business or individual fails to comply with AML requirements.
In relation to property professionals;
- Failure to carry out customer due diligence
- Failure to conduct enhanced due diligence (higher risk clients)
- Failure to maintain adequate AML policies and procedures
- Failure to keep records
- Failure to report suspicious activity
57
How long should you keep AML records
Minimum of 5 years
58
What is Professional Indemnity Insurance
Protects professionals against claims for financial loss arising from negligent advice, services or professional errors provided to a client
59
What is the RICS requirements in relation to PII
RICS requires all firms to maintain adequate cover in line with RICS professional Indemnity Insurance Requirements and Guidance.
60
What are the minimum levels of PII cover
Firm turnover up to £100,000 = Min PII of £250,000
Firm turnover up to £100,001 - £200,000 = Min PII of £500,000
Firm turnover over £200,000 = Min PII of £1,000,000
61
What is PII aggregation clause?
Where a insurance policy allows multiple related claims to be treated as a single claim for the purpose of applying the policy limit
62
What do claims made mean in terms of PII
The policy in place at the time of the claim.
63
Is a PII excess usually paid for per claim?
excess is typically payable per claim
64
In a negligence claim, what would help to show that you acted with consideration and due process?
- Compliance with RICS guidance
- Clear written terms of engagement
- Detailed notes and records
- Evidence of appropriate research
- Following internal procedure
65
Can good record keeping help to provide a defence in a PII claim
Yes
66
If you were providing services outside of your usual scope to a client, what might you need to do in relation to your PII cover?
- Check if the work falls within your existing PII policy
- Seek approval from the insurer
- Consider subcontracting or referral
- Document advice and limitations
- Run off cover considerations
67
What is run off cover
A professional insurance that continues to provide protection for claims made after a firm or surveyor has stopped training or ceased a particular line of work
68
What RICS requirements are there relating to run off cover?
- must be in place for a min of 6 years
- must cover all work undertaken while the firm was trading
- maintain continuity (all gaps covered)
- must be an approved insurer
- firms must maintain records proving run off cover is in place
69
What changes did RICS make to the Minimum Approved PII Wording and when did they take effect?
1st July 2025
Included;
- Policy cancellation provisions
- Consumer run-off coverage clarification
- Fire safety coverage. Must relate to negligent act, errors or omissions
70
Would a dictated report avoid the need to have any written side notes
No - this is classed as negligence
71
Explain PII requirements relating to fire safety cover and cyber cover
Fire Safety Coverage
- Scope
- Buildings 5+ storeys
- Retroactive Date (1st July 2024)
Cyber requirements
- Clarification
- Scope
72
How long can a PII claim arise after the work is undertaken
Within 6 years of the date the cause of action accrued
73
What is the assigned risk pool (ARP)
Ensures that firms or individuals who are unable to obtain insurance on the open market still have access to mandatory PII cover
74
Who might need access to an assigned risk pool
- Start up practices with no claims history
- Firms with previous claims or disciplinary history
- Specialised work perceived as higher risk by insurers
75
Explain your understanding of the RICS Professional Standard Risk, Liability and Insurance (1st Edition)
- Assists members in understanding and managing the main professional risks and liabilities associated with surveying.
includes;
- Purpose of the guidance
- Contract and engagement terms
- Professional standards and legal obligations
- Risk management considerations
- PII
- Construction projects
76
When might you agree a liability cap
In your terms engagement to manage risk and ensure a fair balance between risk and reward
77
How would you set out third party reliance in Terms of Engagement?
Clearly identified in terms of engagement.
- Restrict reliance to the named client only
- Or identify specific permitted third parties
78
What are the 3 key terms that should be considered from a risk perspective in the context of every instruction you undertake?
1. Scope of work
2. Liability / Limitation of liability
3. Fee / Payment terms
79
What is an RICS annual return
Its for all registered firms, a yearly submission to confirm they comply with professional standards, inc PII
80
What do you understand about complaints handling procedures (CHP)
Firms must operate a formal procedure to address client grievances. Must include a designated complaints officer, a 7 day acknowledgment and 28 day final response and access to alternative dispute resolution
81
When and how can the RICS be involved in a complaint about a firm or a member?
When a firm or a member;
- Breaches professional or ethical standards
- Breaches rules of conduct
- Misconduct
- Failure of internal procedure
- When there is a public interest
82
What are the CPD requirements for members of RICS
A min of 20 hours annually with at least 10 hours of formal
83
Why id CPD important?
To maintain professional competence, adhere to ethical standards and stay up to date with industry changes
84
What changes are being made to RICS CPD policy?
Following the SRB 12 week consultation period.
Key updates include;
- Encouraging members to identify, plan, undertake and reflect on CPD that is relevant
- Give members more flexibility e.g. if they are on a long training programme (master degree) they can carry forward 15 CPD hours to the following year
- Mandatory topics are covered every 3 years
- Improve member experience by enabling easier planning and recording, via a new app
- Members will have to declare that their CPD is relevant, adequate and appropriate
- A higher % of CPD records to be reviewed annually by RICS
To take effect January 2026
85
What is the RICS guidance on dealing with Conflicts of Interest
RICS Professional Standard Conflicts of interest March 2017 effective from January 2018
86
What is double dipping (dual agency)
When an agent acts for both the buyer and the seller in the same transaction.
87
Why is double dipping an unacceptable practice?
- It creates COI and compromises professional advice
- Breach of confidentiality
- Reduced transparency and trust
- Weakness of data barrier
88
How to close down a regulated firm
- Formal de-registration with RICS
- Ensure run-off PII is secured
- Notify client
- Client money
- File retention
- Notify staff and creditors
89
What can you tell me about RICS guidance relating to bribery, corruption or money laundering?
Countering bribery, corruption, money laundering and terrorist financing.
The professional standard deals with bribery, corruption, money laundering and terrorist financing and is divided into 3 parts;
1. Mandatory requirements
2. Guidance setting out supporting good practice
3. Supplementary guidance on some of the concepts relating to requirements and guidance
90
What status does the RICS guidance Countering bribery, corruption, money laundering and terrorist financing hold
Outlines musts and shoulds that members and firms must follow
91
what are the key principles of the RICS guidance Countering bribery, corruption, money laundering and terrorist financing
- Firms must have a written policy which is easy to understand and must include a gift register and risk assessment
- Members must have adequate understanding of the standard
92
What must/should firms and members do to comply with the guidance?
- Not facilitate or be complicit in money laundering or terrorist financing
- Must not ignore red flags
- Report and suspicious activity
- Assess each transaction to agree controls and investigate measures
- Avoid tipping off
93
What are the current RICS rules for registration of firms
Outlined in the professional guidance - Rules for the registration of firms 2nd Feb 2022.
- Must communicate with RICS
- Must register with RICS if at least 50% of the firms principals are RICS members
- Must have a responsible principal
- Must pay the annual fees and other costs
94
Who is a 'qualified member' of the RICS
Someone who has become qualified as a chartered member
95
what is a phoenix firm in the context of firm regulation
A firm are high risks and arise from firms which close in a disorderly was and the rapidly re-establish themselves as a new trading entity
96
When must a firm register for regulation
When they begin trading or when the begin providing services to the public and if more than 50% of the firms principals are RICS members
97
What are the registration eligibility criteria?
- If the firm provides surveying practices to the public
- At least 25% of the firms principals are RICS members
98
Who is a responsible principal
Someone within the firm who has the responsibility for ensuring that RICS professional, technical and ethical standards are applied, upheld and supported by appropriate framework
99
What happens when a firm cannot comply with the eligibility criteria
The firm cannot become RICS regulated
100
What are the rules around use of the RICS logo and 'regulated by RICS' designation
- The RICS logo may only be used by a member or a registered firm
- The RICS registered firm designation may only be used by a RICS registered firm
101
Tell me about the restrictions to the use of the designation 'Chartered Surveyors' by firms
- If 50% or more of the partners or directors are chartered member
- No director has been expelled from RICS
- Is only used in the business trading name
- The firm is registered with RICS for regulation
- The firms principal office is in the UK
102
What must be included in ToE relating to firm regulation
Must have the text as outlined in the Rules for the Use of the RICS logo and designation by firms'
[Name of Firm] is regulated by RICS for the provision of surveying services. This
means we agree to uphold the RICS Rules of Conduct and all other applicable
mandatory professional practice requirements of RICS, which can be found at www.rics.org. As an RICS regulated firm we have committed to cooperating with RICS in ensuring compliance with its standards. The firms nominated RICS Responsible Principal is [insert name, job title and contact details].
103
What is a locum and who might need one
Another professional who is appointed to 'stand in' for the surveyor if they are unable to work
Required for a firm which has a sole principal
104
How could a sole trader set up their CHP using a locum?
A locum may be appointed as their complaints handling officer to ensure that their CHP can be run fairly and impartially
105
What RICS guidance relates to handling client money?
RICS professional standard - Client Money Handling 1st Edition 1st Jan 2020
106
What was the Guidance relating to client money last updated?
The document was reissued in October 2022 as a professional standard.
It was previously published in October 2019 as a professional statement
107
What do the RICS rules of conduct say about client money?
Rules 8 for firms - A firm shall preserve the security of clients' money entrusted to its care in the course of its practice of business
108
Explain your understanding of the RICS Scheme Rules relating to client money protection?
- If a firm holds money it must be a member of the RICS approved Client Money Protection (CMP) scheme
- Firm must keep client money separate from the firms own money
- Firm must use a designated client account (often called client account)
- Must be held with a regulated bank
- Must be clearly identified as Client Account
- The firm must have written procedures
- Must be reconciled at regular intervals
109
What are the main RICS client money protection schemes available to firms?
RICS operates a Client Money Protection Scheme (CMPS) in the UK.
Covers 2 parts
1- General client money protection
2- Residential agency activity
110
When were the RICS client money protection schemes last updated
Professional regulation guidance - Client Money Protection Scheme Rules 18th June 2025
111
What are the current client money compensation limits?
Only in respect of direct loss of client money
Limit per claim: £50,000
Cap on liability: £10,300,000
112
What does the RICS annual regulatory review fee relate to
All regulated firms who hold clients' money pay a regulatory review fee on an annual basis
113
What might client money include
Rent from tenants
114
How does client money differ to office money
Client money is money that is received on behalf of the client and must be returned to them
Office money is money generated from fee work
115
What are the key principles of the RICS professional standard relating to client money protection
1 - Segregation of client money
2 - Protection of client money
3 - Use only for intended purposes
4 - Accountability and transparency
5 - Regular reconciliation and control
6 - Appropriate governance and systems
7 - Client awareness
8 - Compliance and professionalism
116
What are the key principles of the RICS professional standard relating to client money protection
Population growth
Urbanisation
Sustainability
Talent and skills
117
Explain the potential implications of the Hart V Large Case
- Greaty duty to advise and not just report
- Focus on client objectives
- Failure to recommend further investigations = negligence
- Importance of clear language
- PII pressure
118
Explain your understanding of precedent set in Burgess V Lejonvarn
- Duty of car can arise without a contract
- Professional standard still applies
- Assumption of responsibility
- The importance of formal appointments
119
What do RICS set out as good practice for the use of social media?
- Be honest and accurate in what you post
- Treat social media as a professional platform
- Take responsibility
- Do no disclose client information
- Avoid conflicts
- Avoid behaviour that could damage the public trust and reputation of RICS
-
120
Explain your understanding of the RICS Levitt Review
In was published in 2021 and was an independent investigation into the governance of RICS carried out by Alison Levitt
It arose after an internal dispute at RICS involving dismissal of board members
121
What is whistleblowing
The act of disclosing information about wrongdoing in the workplace
122
What does good governance mean to you?
Processes and outcomes that are necessary to achieve the goals of development
123
Explain what the Pandora Papers are and the ethical issues raised with them
A major international data leak exposing how wealthy individuals, politicians and professionals used offshore structures to hold assets and manage wealth
Ethical issued raised
- Transparency and beneficial ownership
- Money laundering risk
- Tax avoidance
- CDD failures
124
Explain your understanding of the RICS Bichard review
It following the Levitt Review and focused on how the RICS should reform and move forward.
It assessed whether RICS was fit for purpose
It was about resetting RICS - clarifying its purpose, strengthening governance and rebuilding trust
125
Explain some of the recommendations of the Bichard Review
36 recommendations
- RICS matric should be re modelled to give younger members a stronger voice
- Clarify RICS purpose and role
- Rebuild trust
126
How will the recommendations of the Bichard review be implemented by RICS
The governing council through 5 networking groups and 3 stages
127
How does professional integrity and professional ethics differ
Integrity is the quality of being honest and having strong morals
Ethics is more external - rules, regulations and code of conduct
128
What is modern slavery and how would you identify red flags of it?
Where a person is exploited and cannot refuse or leave due to threats. It includes, forced labour, human trafficking, child labour and domestic servitude
Red flags
- No employment contracts
- Small or no pay
- Unsafe or unhygienic accommodation or work conditions
- Complex subcontracting chains
129
Explain the implications of the Sanctions and Anti-Money Laundering Act 2018.
- Implement sanctions
- Combat money laundering
- Protect the UK economy and international obligations
- CDD
- Risk based approach
- Reporting suspicious activity
- Compliance and record keeping
130
What is the sanctions list and why should you be aware of it
- An official list identifying individuals, entities or sectors subject to specific legal restrictions
To comply with RICS professional standard (money laundering and financial crime)
131
Why was the register of overseas entities introduced
To improve transparency around the ownership and control of overseas entities that own UK land. Publically available
132
What are the six rics values published as a result of the levitt review
- Honesty
- Integrity
- Competence
- Service
- Respect
- Responsibility
133
Explain the impact of the Economic Crime (Transparency and Enforcement) Act 2022
It was introduced to strengthen the UKs ability to tackle economic crime.
- Reinforced AML and sanctions compliance
- Increased professional and reputational responsibility in property transaction work
134
What criminal corporate offence was brought in by the economic crime and corporate transparency act 2023
Failure to prevent fraud
135
What is the Failure to prevent fraud offence
It makes organisations criminally liable for fraud committed by persons associated with them, where the fraud is intended to benefit the organisation
136
What is an example of Failure to prevent fraud
A member of the finance team deliberately under reporting the company's earnings in an office tax declaration to HMRC
137
Who can commit a 'Failure to prevent fraud' fraud
An employee or agent
138
What is the only defence against a Failure to prevent fraud
The organisation must demonstrate they had reasonable compliance processes in place
139
What are the 6 principles of reasonable measures to prevent fraud
- Commitment
- Risk Assessment
- Risk based prevention procedures
- Due Diligence
- Communication
- Monitoring and review
140
How does the failure to prevent fraud offence sit alongside existing legislation relating to fraud
An organisation can now be prosecuted for failing to prevent fraud, alongside the individual who committed the fraud being prosecuted individually
141
What is the impact of the worker protection (amendment of the equality act 2010) act 2023
Introduced a legal duty for employers to proactively take reasonable steps to prevent sexual harassment
HO APC 2026
flashcards
Decks in class (24)
# Cards
-
Valuation38
-
Property Management54
-
Case Study37
-
Agriculture18
-
Land use and Diversification15
-
Stakeholder Management12
-
Housing Maintenance, repairs and improvements14
-
Landlord and Tenant41
-
Purchase and Sale27
-
Valuation Level 123
-
Hot topics 202668
-
Ethics Level 1141
-
Client Care26
-
Communication and negotiation21
-
Health and Safety64
-
Accounting principles and procedures52
-
Business Planning1
-
Conflict avoidance, management and dispute resolution procedures0
-
Data management0
-
Inclusive environments0
-
Diversity, inclusion and teamworking4
-
Sustainability0
-
Ethics Level 2 and 317
-
Landlord and Tenant Level 12
