What are the RICS Rules of Conduct?
- Members and firms must be honest, act with integrity and comply with their professional obligations, including obligations to RICS.
- Members and firms must maintain their professional competence and ensure that services are provided by competent individuals who have the necessary expertise.
- Members and firms must provide good-quality and diligent service.
- Members and firms must treat others with respect and encourage diversity and inclusion
- 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.
What behaviours would you relate to Rule 1?
Honesty and transparency. Covers conflicts of interest, client money handling and avoiding money laundering or bribery.
What behaviours would you relate to Rule 2?
Maintaining my own level of professionalism, having a specific CPD plan and carrying it out. Firms to ensure training provided to staff and to make sure CPD is fulfilled.
What behaviours would you relate to Rule 3?
Understanding clients requirements through a clear brief. Clear appointment documents detailing fees and scope of services. Handle data carefully.
What behaviours would you relate to Rule 4?
Respect everyone not just in the workplace. Never discriminate and carry out due diligence in checking the supply chain is free from modern slavery or unfair labour.
What behaviours would you relate to Rule 5?
Speaking up when I see wrong doing. Being conscious of statements made on social media so to maintain public confidence. To take responsibility would be to own up to any mistakes made and act to resolve them.
What are the principles for better regulation?
- Proportionality
- Accountability
- Consistency
- Targeting
- Transparency
What ethical principles define the new rules of conduct?
Honesty, Integrity, Competence, Service, Respect, Responsibility.
How would you register for regulation as a firm?
- Contact the RICS for an info pack
- Inform the RICS and register for regulation
- Appoint a contact officer for RICS communications
- Take out professional indemnity insurance and run off cover
- Prepare an appropriate complaints handling procedure
- Abide by the RICS rules of conduct
- Use the designation ‘Regulated by the RICS’ on all practice material
What are the requirements for a firm to become regulated?
If 50% of principals are members of the RICS and the firm provides surveying services to the public in regulated area A (UK) regulation is compulsory.
If at least 25% of principals are members then a firm can apply to be be regulated.
What does a compliant complaints handling procedure look like?
Client should be made aware in terms of business. Complaints log should be maintained. Response to complaints given within 28 days (acknowledgement within 7)
Must have two stages:
- Review by senior member of the firm/complaints handler…. if it cannot be resolved then.
- Redress system / ADR procedure with an independent third party.
What are your obligations when handling client money?
- Make sure it is kept safe
- used only for appropriate purposes
- have controls to safeguard it
What are the requirements of a client money account?
- Firm has exclusive use
- Account only includes the client money paid into it
- Account has words client and name of firm in title
- money is immediately available
What are the RICS disciplinary procedures?
Only serious offences will lead to disciplinary procedures (Rules of Conduct 2022)
Set out by the regulatory tribunal who are granted powers by the bye laws.
Disciplinary action will be determined by the nature of the offence.
- Investigation by the RICS (Investigate accusation or apparent non compliance)
- Regulatory Compliance order (agreement - failure to comply will lead to disciplinary hearing)
- Fixed Penalties (only for CPD and firms fees)
- Disciplinary Panel hearing (most sever punishment would be expulsion for very serious offences)
What types of conflict of interest are there?
- Own interest conflict
- Party conflict
- Confidential Information conflict
What are the six principles of the Bribery Act 2010?
- Top Level Commitment
- Monitoring and review
- Communication
- Proportionality
- Risk Assessment
- Due Diligence
What are the four offences under the Bribery Act 2010?
- Bribing another person
- Receiving a Bribe
- Bribing a foreign public official
- Failure of a commercial organisation to prevent bribery
What are the potential punishments of breaching the Bribery Act 2010? Who enforces it?
Unlimited fines or up to 10 years in prison.
The Serious Fraud Office investigate and enforce this.
What are the requirements of firms under the money laundering regulations?
- Take steps to identify and risk assess, keeping records of this.
- Provide training to employees.
- Have policies, controls and procedures established to manage the risks.
- Regularly review and update policies.
What is the punishment for failing to comply with money laundering regulations? What is the max cash payment?
Failing to comply with regulations risk a fine, imprisonment of up to 2 years or both.
Maximum amount for cash transactions is equivalent to 10k euros.
What is PI and what are the requirements of Professional Indemnity Insurance?
PI covers professionals for any claims of negligence brought against them in their professional capacity.
Requirements of PI:
- Any one claim or in aggregate with round the clock reinstatement.
- RICS minimum wording or more comprehensive.
- Based on firms turnover the previous year.
- Must be fully retroactive (insurer at time of claim being made covers the claim)
- Run off cover for past and present employees for a minimum of 6 years (12 years if contract under deed)
What are the minimum levels of PI cover?
Based on firms turnover the preceding year:
£100k or less = £250k cover
£100-200k = £500k cover
£200k or more = £1million cover
Firms may wish to hold more than the minimum to adequately cover risks.
What is the maximum level of uninsured excess in PI cover?
Based on turnover preceding year:
£10 million or less = Greater of 2.5% insured sum OR £10k
£10 million plus = No limit on uninsured excess
What is the longstop for professional negligence claims?
15 years as set out in the Limitations Act 1980.
May be useful to obtain run off cover to match this.
