Untitled Deck

Question 1

What is a simplified governance structure of the RICS?

Answer 1

Privy council – Government mechanism that awards royal charter; Governing council – Set top level strategy, chaired by president and members from all over the world. Meets 2x per year; Management board – Develop and implement RICS business plan, deliver strategic goals set by gov council; Regulatory board – Always chaired by a non-member so impartial; Knowledge board – Finance committee, world regional boards, remuneration committee.

Question 2

What is the RICS motto?

Answer 2

There is measure in all things.

Question 3

When was RICS founded?

Answer 3

1868.

Question 4

Who is the CEO of the RICS?

Answer 4

Justin Young – June 2023.

Question 5

Who is the president of the RICS?

Answer 5

Justin Sullivan was appointed on Jan 1st, 2025. He has a particular focus on skill shortage.He stepped aside from the role in early March 2025 amid an investigation into his conduct. Nick Maclean has become the acting president while the investigation is underway.

Question 6

Who is the president elect of the RICS?

Answer 6

Justin Sullivan – used to be president of QS.

Question 7

Who is Acting President and Acting Chair of Governing Council?

Answer 7

Nicolas Maclean.

Question 8

Why do we have rules of conduct?

Answer 8

To provide a framework for all members to ensure they maintain the highest ethical and standards in industry.

Question 9

Difference between RICS ethics and rules of conduct

Answer 9

Ethics = Set of moral values; Rules of conduct = Framework that we work too.

Question 10

Royal Charter 1881:

Answer 10

A Grant issued by the Monarch. It states ‘to maintain and promote the usefulness of the profession for the public advantage in the United Kingdom and in any other part of the world’.

Question 11

What are the RICS Royal Charter Bye-Laws?

Answer 11

There is a 2009 document which outlines rules for the RICS. 10no. Bye laws in total. It contains items such as stating that members must pay subscriptions and the conduct by which they must behave, accounts and audits.

Question 12

If a member does not abide by the rules, the following may happen:

Answer 12

Formal investigation launched; Caution issued; Fined; Conditions placed upon individual; Removal of registration; Expulsion from RICS.

Question 13

How can disciplinary proceedings be triggered?

Answer 13

Someone complaining to RICS; Allegation by Third Party; Information established by RICS.

Question 14

** COMBINED New Rules of Conduct – 2nd Feb 2022 implementation :

Answer 14

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.
Members and firms must provide good-quality and diligent service.
Members and firms must treat others with respect.
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.

Question 15

**Examples of New Rules of Conduct

Answer 15

Members and firms are open and transparent with clients about their fees and services; Members and firms only undertake work they have knowledge, skills and resource to carry out competently; Members and firms must treat others with respect and encourage diversity and inclusion; Members and firms must act in public interest and take responsibility for their actions, act to prevent harm and maintain public confidence in the profession; Members and firms respond to complains made against them promptly, openly and professionally.

Question 16

New rules vs Old Rules:

Answer 16

New rules replaced 3no. documents: Old rules of conduct for members; Old rules of conduct for firms; Global ethical and professional principles. Now one singular document for members and firms. Added new content in the following areas to stay relevant with current times: Sustainability (rule 3 & 4); Handling data (rule 3); Diversity and inclusion (rule 4).

Question 17

** Professional Obligations of members:

Answer 17

Members must comply with the CPD requirements set by RICS; Members must cooperate with RICS; Members must promptly provide all information reasonably requested by the Standards and Regulation board, or those exercising delegated authority on its behalf.

Question 18

**Professional obligations for RICS-regulated firms :

Answer 18

Firms must publish a complaints-handling procedure, which includes alternative dispute resolution provider approved by RICS, and maintain a complaints log; Firms must ensure that all previous and current professional work is covered by adequate and appropriate professional indemnity cover that meets the standard approved by RICS; Firms with a sole principle must make appropriate arrangements for their professional work to continue in the event of their incapacity, death, absence from or inability to work; Firms must cooperate with RICS; Firms must promptly provide all information reasonably requested by the standards and regulations board, or those exercising delegated authority on its behalf; Firms must display on their business literature, in accordance with RICS’ published policy on designations, a designation to denote that they are regulated by RICS; Firms must report to RICS any matter that they are required to report under the Rules for the Registration of Firms.

Question 19

Ethical decision-making process:

Answer 19

Consider the facts; Identify relevant RICS standards in the rules of conduct; Use your professional judgement; Document your decision.

Question 20

What are the five principles of better regulation? PACTT

Answer 20

Proportionality; Accountability; Consistency; Targeting; Transparency.

Question 21

Purpose of code of conduct

Answer 21

RICS is self-regulated. Outlines how RICS regulates to ensure they provide best quality of service and ethics.

Question 22

What is the role of the RICS?

Answer 22

Regulate and promote the profession. Maintain the highest ethical and professional service. Protect clients through a code of ethics. Provide impartial advice, analysis and guidance.

Question 23

What is the Clients Money Protection Scheme?

Answer 23

Operated by RICS

Provision for any member of the public to be reimbursed their direct loss of funds when using a RICS regulated firm

Recovered through insurance

RICS Regulated firms pay a regulatory review fee and levy for the scheme after submitting annual return

Question 24

Rules about holding Clients’ money :

Answer 24

Separate client account

Money must be clearly linked to a client in the event of insolvency, misappropriation death of a sole practitioner or transfer of money to another organization

Client must be allowed to access the funds at any time

Provide a statement once set up

Prior to drawing money, send a copy of statement and amount being withdrawn and fees

Once withdrawn, send follow up statement showing revised account balance

Ensure everything is auditable

Question 25

Types of Client Money Accounts:

Answer 25

General Account = hold money for more than one Client Discrete Account = Single named Client

Question 26

When must you register your firm with the RICS?

Answer 26

When providing a service to the public in regulated area A or if more than half its principles are RICS members.

Question 27

When is a firm eligible to register?

Answer 27

When provides surveying service to the public and at least 25% of firm’s principals are RICS members

Question 28

Procedure to follow if starting a new practice:

Answer 28

Obtain company start pack from RICS Inform RICS and register for regulation Appoint contact officer for all RICS communication Prepare CHP Obtain PI in line with RICS requirements Abide by RICS rules of conduct

Question 29

What information do registered firms have to send to RICS annually?

Answer 29

Annual return and its carried out online

Question 30

What are the three types of conflict?

Answer 30

Party conflict – The ability to act on behalf of the client is conflicted by a duty owed to another party. E.g. affiliations Own interest conflict – The ability to act on behalf of the client is conflicted due to personal interests. E.g. shareholder in opposing company Confidential information conflict – Where the RICS member is expected to tell one client a piece of information which he is expected to keep confidential to another. E.g. knowing one clients budget which is confidential, but being expected to tell it to another. This applies to previous and potential clients and has no defined time limit.

Question 31

How is conflict of interest managed?

Answer 31

RICS members must inform clients where there is a conflict of interest and the implications. Maintain a detailed record of the conflict Obtain informed consent Implement information barriers Ensure all client confidential information remains confidential. They must be identified and managed in line with the RICS conflict of interest guide and a record kept as to the decision making and whether to accept, the consideration and implementation.

Question 32

If a Client was insistent that you worked for them despite an existing conflict of interest, how would you proceed?

Answer 32

Check Clients understanding of the Conflict Make Client aware of potential for reduced impartiality If still insistent, seek letter of instruction to proceed from Client Following appointment, agree working procedures to manage the conflict with the Client and teams involved

Question 33

What is JMS’s policy in regard to gifts/bribes?

Answer 33

JMS prohibits staff offering or accepting bribes. JMS code of conduct. All offers should be recorded in the gift log.

Question 34

What would you do if you won a raffle?

Answer 34

Common way to give bribes State that you could not accept due to company policy however you would like to donate it to the LionHeart Charity

Question 35

What is the Lionheart Charity?

Answer 35

Independent charity specifically designed for past, present and future RICS professionals and their families.

Question 36

If you were unsure of an ethical situation what would you do?

Answer 36

Use the RICS ethical decision tree.

Question 37

What is the ethical decision tree?

Answer 37

A series of questions in a flow chart which outline whether to proceed with a decision or not based on ethical grounds. E.g. is it legal, is it within the standard, would you mind it being published.

Question 38

What is money laundering?

Answer 38

Taking money from criminal activity and making it legal. E.g. spending and then getting a refund. RICS suggests monitoring the activities of your known organisation to prevent this occurring. If suspected, I would refer to RICS guidance on how to manage this

Question 39

Money Laundering and Terrorist Financing Regulations 2022:

Answer 39

Responsibilities under regulations: Customer due diligence Undertake risk assessments Have a nominated officer for monitoring Train employees Adequate polices Good record keeping

Question 40

Money Laundering red flags:

Answer 40

Unusual Client Unusual or unexplained transactions Large transactions Multiple bank accounts Foreign bank accounts

Question 41

The Bribery Act 2010:

Answer 41

Don’t bribe another person, Don’t accept a bribe Don’t bribe a foreign official Commercial organisations must not fail to prevent bribery Legislation applies to all UK entities.

Question 42

Six principles of prevention:

Answer 42

Proportionality Top level commitment Risk assessment Due diligence Communication Monitoring and review

Question 43

Under Bribery Act, when is a facilitation payment permitted?

Answer 43

When under duress, present risk of danger Must report matter immediately to your ethics compliance contact

Question 44

RICS Countering bribery and corruption, money laundering and terrorist financing:

Answer 44

March 2022: Anti Money Laundering Sanctions Update: Regularly check UK sanctions list UK Specific reporting obligations Failure to comply = Fine/Prosecution from Office Financial Sanctions Implementation (OFSI)

Question 45

Types of Due Diligence:

Answer 45

Legal due diligence Seeks to examine the legal basis of a transaction, for example to ensure that a target business holds or can exercise the intellectual property rights that are crucial to the future success of the company. Other areas that would most likely be explored include legal structure, contracts, loans, property, employment and pending litigation. Financial due diligence Focuses on verifying the financial information provided and assessing the underlying performance of the business. Earnings, assets, liabilities, cashflow, debt and management are usually considered. Commercial due diligence Considers the market in which a business sits, for example by having conversations with customers, assessing competitors and creating a fuller analysis of the assumptions that lie behind the business plan.

Question 46

Whistleblowing:

Answer 46

Reporting of malpractice or unethical behaviour (corruption, bribery etc.) The Public Interest Disclosure Act 1998 gives legal protection to employees against being dismissed or penalised by their Employer as a result of publicly disclosing certain serious concerns.

Question 47

JMS Guidance Whistleblowing

Answer 47

Minor Issues (e.g., use of Company equipment, abuse of the smoking policy) Raise concerns with their line manager. If the complaint is against the line manager, then this should be raised with the next line of management Major Incidents (e.g., fraud, potential danger to the public or colleagues) Raise with the Company Secretary who has been appointed as the Company Disclosure Officer If the concern is about the Disclosure Officer, then you should report the concern to the Finance Director

Question 48

Someone you know is a chartered surveyor. You find out he is working outside the RICS rules of conduct. What do you do?

Answer 48

Verify facts and remind him of his duties as a member of RICS Inform RICS outlining relationship to the person and any action which the person should put in place

Question 49

You receive an invite to the theatre with some members of your project team but they drop out because of illness, would you still attend?

Answer 49

Declare the hospitality on companies gift and hospitality register Assuming it was approved, I would decline the invite due to the project team dropping out Since they are no longer present, this is not a genuine business event Over my personal allowance of £50 without approval from MD Donate tickets to charity

Question 50

A Contractor invites you to lunch at a restaurant with 2 Michelin stars and a wine list. They say they are keen to discuss the details of their tender they are about to submit for your project. How would you respond?

Answer 50

Due to the value, it will be against company policy and could be an offence under the bribery act I would decline and outline how such invitation is inappropriate Report internally

Question 51

Assuming you were successful in getting chartered, how would you deal with a situation such as a friend who asked you to provide them with QS Advice?

Answer 51

I couldn’t not offer advice with my own PI insurance If I have PI, inform that they can contact you during working hours to discuss terms of engagement If not comfortable acting for them, advise them to use ‘find a surveyor scheme’ Adhere to RICS rules of conduct

Question 52

Carsberg report – 2005:

Answer 52

Internal and external review of the regulation of RICS Response to members dissatisfaction with RICS regulation Key recommendations: Regulate firms as well as members (implemented in 2007) Review of CPD requirements and compliance

Question 53

CPD Requirements for Members:

Answer 53

Minimum 20 hours CPD per year, 10 hours must be formal

Question 54

How do you differentiate between different categories of CPD

Answer 54

RICS CPD Decision Tree

Question 55

If you put together a fee proposal, but a couple months into the job you realise you have under forecasted resources, can you go back to the Client to ask for additional monies?

Answer 55

If project requirements such as scope of service have increased, then you can request a fee increase If the scope of service remains the same and it is a mistake within bid, then you cannot request a fee increase

Question 56

What insurance do you need in a contract?

Answer 56

Employers liability – covers employees for accidents and injury Public liability – covers public for accidents or injury + damage to property Professional indemnity – covers negligence Contractors all risk – covers the construction works for damage (e.g. fire, storm. If an original building stands it does not cover it, that needs its own building cover)

Question 57

What insurance is a legal requirement?

Answer 57

Employers Liability (Compulsory Insurance) Act 1969 Employers Liability = Min £5m You can be fined £2,500 every day you are not properly insured

Question 58

OCIP (Owner Controlled Insurance Programme):

Answer 58

Single insurance plan designed to cover liability arising from projects Client purchases the insurance and provides cover the parties to the project Self-insured retention (excess to pay prior to the insurer stepping in) Covers: Contractors All Risk Third Party Liability

Question 59

What does ‘on each and every claim Basis’ mean in regard to cover?

Answer 59

The policy will pay up to the insured amount on each claim, without limit to the number of claims.

Question 59

OCIP (Owner Controlled Insurance Programme) Benefits

Answer 59

Owner pays insurance cost – Not needed for supply chain (removed from tender submission) Select level of cover to reflect risk appetite Smoother claims handling procedure

Question 60

What is an ‘aggregate basis’?

Answer 60

There is a reduction in the amount available to claim following each claim. The insurance has a TOTAL pot.

Question 61

What is a ’claim occurring’ basis?

Answer 61

The policy only pays out for claims as they are noticed. (Generally Employers liability, where employees may become sick from asbestos they came into contact to years ago).

Question 61

What is a ’claim made’ basis?

Answer 61

The negligent act must be claimed on within the policy period (hence the need for run off cover, you could have been covered at the time you did it, but it might not be noticed until later).

Question 62

What is subrogation?

Answer 62

When your insurance company steps into your shoes to recover costs from a third party that caused you damage or loss.

Question 63

What is PI insurance?

Answer 63

Professional indemnity, to cover you in case of a mistake (negligence)

Question 64

What is meant by negligence?

Answer 64

Failure to provide the duty of care owed to the Client Reasonable skill and care of a competent Contractor

Question 65

How is PI calculated at JMS?

Answer 65

Based on turnover

Question 66

What are the RICS requirements for PI?

Answer 66

Must be made on an ‘each and every’ claim basis Gives min wording (written on a full civil liability basis) Sets out minimum levels of indemnity based on turnover in the previous year Sets out maximum levels of uninsured excess (the part of each claim the firm must pay itself) Run off cover must be in place for at least 6 years Should include cover for past and present employees, directors and partners

Question 67

What are the minimum levels of PI required?

Answer 67

This depends on the firm’s turnover If turnover is £100k or less it is £250k If turnover is £100k - £200k it is £500k If turnover is above £200k it is £1m

Question 68

What are the maximum levels of uninsured excess?

Answer 68

Turnover in previous year: Up to £10m = greater of 2.5% of insured sum or £10,000 Over £10m = no limit set

Question 69

What if the loss is more than the insured level?

Answer 69

The professional/firm is liable for the extra

Question 70

If you are a new company and have no previous accounts, how do you identify the level of PI required?

Answer 70

Refer to your business plan which will have a forecast of expected turnover. Use this to identify which level is required.

Question 71

What is a liability cap?

Answer 71

It caps the amount that an injured party can claim for through the courts, regardless of whether they would ordinarily have been awarded high. E.g. Subcontract liability is limited to that of 10% of subcontract sum.

Question 72

What measures can be taken to avoid PI claims?

Answer 72

Keep full and detailed records of meetings, conversations etc 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 guidance

Question 73

If you made a mistake in your cost plan, what would you insurance company expect you to do?

Answer 73

Notify them and comply with any conditions and procedures set out in the insurance policy

Question 74

If an estimate prepared by a QS is incorrect, can the client claim damages?

Answer 74

An estimate that is incorrect in itself will not give rise to claim for damages Client must demonstrate that the QS warranted the accuracy of the estimate or that it was incorrect due to a lack of reasonable skill or care

Question 75

How to limit liability when agreeing terms of appointment with a Client?

Answer 75

Base the appointment on reasonable skill and care instead of fitness for purpose Put run-off cover in place Execute appointment underhand as it has a reduced liability of 6 years compared to deed

Question 76

Are you familiar with the term limit of liability and where would it be used?

Answer 76

Limit of liability is used to place a cap on the level of exposure a business signs up to.

Question 77

What is run off cover?

Answer 77

To cover you should you retire or liquidate once PI runs out as claims are on a claims made basis and not from when the event occurred. This should be for 12 years to cover deed contracts. (RICS looking to turn it into a one-off payment, as hard for retirees to forecast finances).

Question 78

A Locum Agreement:

Answer 78

Cover incapacity, death or extended absence of a sole practitioner or sole director Effectively another person who ‘stands in’ if they are unable to work Can be another RICS member or another suitably qualified professional e.g., a Solicitor

Question 79

What happened in Merrett V Babb?

Answer 79

Babb did a valuation on a house purchased by Merrett as an employee of a company. The valuation was later found to be negligent. Unfortunately the company no longer existed and the court ruled that Merrett could pursue Babb personally for the loss.

Question 80

Why do you want to be a member ?

Answer 80

professional recognition, enhanced career opportunities, and access to a global network

Question 81

what is Locum

Answer 81

A locum steps in to perform the duties of a surveyor who is temporarily unable to work. locum is a temporary replacement professional who stands in for a sole practitioner or surveyor during their absence. This can be due to reasons like illness, holiday, or even death, ensuring the continued operation of the business and support for clients.

Question 82

What is the RICS Matrics

Answer 82

RICS Matrics is the early career community for the Royal Institution of Chartered Surveyors (RICS) that supports students, apprentices, trainees, and newly qualified members for up to 10 years. It provides a platform for professional development through networking events, mentorship, and continuous professional development (CPD) opportunities, while also giving younger professionals a voice to influence the surveying profession.

Question 83

what is party conflict ?

Answer 83

the ability to act on behalf of the client is conflicted by a duty owed to another party. E.g. affiliations

Question 84

what is own interest conflict ?

Answer 84

The ability to act on behalf of the client is conflicted due to personal interests. E.g. shareholder in opposing company

Question 85

what is confidentiality information conflict

Answer 85

where the RICS member is expected to tell one client a piece of information which he is expected to keep confidential to another. E.g. knowing one clients budget which is confidential, but being expected to tell it to another. This applies to previous and potential clients and has no defined time limit.