RICS Complaints Handling Procedure Quiz

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Questions and Answers

What information is required for a Private Limited Company during incorporation?

Only the business address and directors’ names

Shareholder details and proof of capital investment

Full name, registered number, business address, and ID of higher risk clients (correct)

A valid tax identification number and banking details

What act allows enforcement authorities to recover proceeds from crime in the UK?

Proceeds of Crime Act 2002 (correct)

Sanctions and Anti Money Laundering Act 2018

Financial Services Act 1986

Bribery Act 2010

Which regulation encompasses anti-money laundering measures as of 2023?

RICS Anti Money Laundering Sanctions Update 2022

Financial Action Task Force Regulations

Bribery Act 2010

Money Laundering, Terrorist Financing and Transfer of Funds Regulations, 2017 (correct)

What is NOT a relevant consideration when discussing the acceptance of cash or gifts?

The personal financial status of the recipient Signup and view all the answers

Which act has been updated in light of geopolitical activities such as the Ukraine war?

Sanctions & Anti Money Laundering Act 2018 Signup and view all the answers

What is a crucial element of the Complaints Handling Procedure that RICS firms must have?

A published Complaints Handling Procedure Signup and view all the answers

What should be done if a valid complaint is received by a RICS firm?

The complaint should be acknowledged within 7 days Signup and view all the answers

What is the time limit for investigating a complaint according to RICS regulations?

28 days Signup and view all the answers

If a complainant is dissatisfied with the outcome of the initial investigation, which stage follows?

Stage Two - Independent Redress Scheme Signup and view all the answers

What must be included in a firm's complaints log?

Details, progress, and outcome of all complaints Signup and view all the answers

What is the role of the Complaints Handling Officer?

To investigate the complaint Signup and view all the answers

Which of the following is a requirement regarding the Complaints Handling Procedure?

It must be quick, clear, transparent, and impartial Signup and view all the answers

Which of the following organizations can serve as an independent redress mechanism?

The Centre of Effective Dispute Resolution (CEDR) Signup and view all the answers

What is the minimum required aggregate cover for consumer claims over a period of 6 years in terms of run-off cover?

£1 million Signup and view all the answers

What is the potential limit on uninsured excess for policies up to £10 million?

2.5% of sum insured or £10,000, whichever is greater Signup and view all the answers

Which statement is true regarding the Policy Indemnity Insurance (PII) policies?

They cover claims made regardless of when they occurred. Signup and view all the answers

In the case of Yianni V Edwin Evans (1981), what duty was established?

A valuer can owe a duty of care to a mortgagee purchaser relying on a valuation. Signup and view all the answers

What should firms do if they cannot obtain run-off cover from their insurer?

Apply for coverage to the RICS Run-off Pool. Signup and view all the answers

What is a common recommendation for managing risks associated with professional work?

Use liability caps to manage risks. Signup and view all the answers

What is the effect of early notification to insurers when a potential claim arises?

It helps in better management of potential claims. Signup and view all the answers

In relation to the case Scullion V Bank of Scotland (2010), what did the court establish regarding duty of care?

No duty of care is owed to the borrower by the surveyor. Signup and view all the answers

What is the proposed EPC rating for all new tenancies as of 2025?

C or above Signup and view all the answers

Which categories are considered in a BREEAM assessment?

Energy consumption, water use, transport links Signup and view all the answers

What is the mandatory date for the RICS Residential Retrofit Standard to apply?

31 October 2024 Signup and view all the answers

What is one potential outcome of the RICS Residential Retrofit Standard’s implementation?

Availability of green mortgages Signup and view all the answers

Which of the following is NOT a rating provided by BREEAM?

SUPERB Signup and view all the answers

What aspect does the RICS guidance on healthy buildings NOT cover?

Transportation costs Signup and view all the answers

Who cannot rely on the valuations made by an internal valuer?

Third-party entities Signup and view all the answers

Which of the following is considered a key component of residential energy retrofits?

Solar panels Signup and view all the answers

What is the primary purpose of the Memorandum of Understanding Action Plan signed by RICS?

To create a diverse, equitable, and inclusive sector Signup and view all the answers

Which of the following types of discrimination is NOT specified in the Equality Act 2010?

Occupational discrimination Signup and view all the answers

Which is a key requirement for creating inclusive environments?

Consider accessibility for a diverse range of needs Signup and view all the answers

What does the Bichard Review require RICS to improve?

Diversity and inclusion in governance decisions Signup and view all the answers

What must those managing buildings ensure according to the legal obligations under the Equality Act 2010?

They follow non-discriminatory practices in tenancy dealings Signup and view all the answers

Which of the following factors must be considered when designing inclusive environments?

Different physical and mental health issues Signup and view all the answers

What should organizations do to prevent biases from negatively affecting individuals?

Implement data collection and education Signup and view all the answers

During the occupancy phase, what is essential for ensuring accessibility?

Ensuring users can reasonably access and navigate the space Signup and view all the answers

What is one consequence of indirect discrimination as outlined in the Equality Act 2010?

Specific practices disproportionately disadvantage certain groups Signup and view all the answers

Which of the following is considered a best practice in creating inclusive environments?

Incorporating user accessibility throughout the property lifecycle Signup and view all the answers

Study Notes

Complaints Handling Procedure (CHP)

RICS firms must have a published CHP
CHP should be issued to the complainant on receipt of a complaint, who the firm owes a duty of care to
Procedure should be quick, clear, transparent, and impartial
Detail a nominated person who will investigate the complaint (Complaint Handling Office)
Complaint must be made in writing
Procedures and strict timescales for investigation should be recorded
Complaint should be acknowledged within 7 days and investigated within 28 days
If the complainant is not happy with the review, the second stage is using an independent redress scheme that the firm has chosen
The name of the appropriate redress mechanism must be provided to the complainant
Examples of independent redress mechanisms are The Centre of Effective Dispute Resolution (CEDR), The Property Redress Scheme, and the RICS Dispute Resolution Service.

Professional Indemnity Insurance (PII)

RICS firms must have PII insurance to protect against claims for negligence
PII insurance should be notified if a complaint is received
A complaints log must be maintained to show details, progress, and outcome of all complaints
PII insurance should include RICS Approved Alternative Dispute Resolution (ADR) mechanism
PII Policies work on a claims-made basis - policies cover claims made during the period of insurance regardless of when the negligent act occured
PII certificate to be sent to RICS annually as part of the firms annual return to RICS
Early notification to insurers is required when a potential claim arises
PII cover is needed for pro-bono (unaided) work
RICS assigned risk pool is available at a cost for members who cannot arrange cover
RICS runs a Members Support Service (MMS) for members facing claims for work carried out by an employer who has gone into administration
Most firms aim to cap their liability with clients for individual instructions

Run-off Cover

"Adequate and appropriate" run-off cover is required following cessation of trading:
for consumer claims: a minimum of £1milion of aggregate cover over a period of 6 years
for commercial claims: firms must consider what is adequate for a minimum of 6 years
Firms that are unable to obtain run-off cover from their incumbent insurer or the open market will be able to apply for coverage to the RICS Run-off Pool

Liability Caps

RICS Practice Information: Risk, Liability and Insurance 2021 recommends the use of liability caps to manage risks associated with professional work
Professional firms should be aware of third party reliance - make it clear that advice can only be relied upon by the client named in the terms of engagement.

Negligence

Surveyors owe a duty of care to clients and third parties - using reasonable care and skill
When there is a breach, resulting in a loss, a claim for damages arises
Yianni V Edwin Evans (1981) - case established a resi valuer instructed by a mortgagor lending institution could owe a duty of care in tort to a mortgagee purchaser relying on a valuation
Scullion V Bank of Scotland (2010) - a breach of duty of care owed to Mr Scullion in relation to a valuation report prepared for a flat in Cobham, Surrey
Court of Appeal held that a surveyor who provides advice on value to a lender in respect of a buy to let purchase does not owe a duty of care to the borrower who is seeking funding to purchase the property.

Due Diligence

Due diligence (DD) should be undertaken prior to and during instructions
DD can be assessed through implicit assumptions testing

Anti-Bribery Procedures

If asked about the acceptance of cash/gifts etc, consider the following:
Bribery Act 2010
RICS Professional Standard
Your firms procedures
Professionalism, objectivity, transparency (RICS Rules)
Proportionality
Sanctions

Anti-Money Laundering (AML) Procedures

If asked about AML procedures, consider:
MONEY LAUNDERING, TERRORIST FINANCING AND TRANSFER OF FUNDS (INFORMATION ON THE PAYER) REGULATIONS, 2017 (AS AMENDED 2023)
RICS professional Standard (but law comes first)
DD procedures (inc. ID of higher risk client)

Teamwork

Teamwork can be affected by unconscious bias - positive actions need to taken to ensure that these biases do not adversely prejudice people
RICS have signed a Memorandum of Understanding Action Plan (MoU) intended to create a more diverse, equitable and inclusive sector in order to be more representative of the society it serves.
The MoU requires organisations to determine reasons for poor performance in this area through data collection and education
The Bichard Review about the future of RICS also requires RICS to improve Diversity and Inclusion in decisions and action relating to its own governance.

Inclusive Environments

Designed and managed to allow people with a diverse range of needs and abilities to access and use it
An environment could be a building or place, including homes, workplaces and shops etc
Inclusive applies throughout the property lifecycle, through design/refurbishment ensuring accessibility is considered; Occupancy - ensuring users of the space can reasonably do so despite any disabilities
Important for fire safety / evacuation
Those responsible must have good awareness of the following issues:
Different physical and mental health issues which may lead to varying accessibility requirements
Factors that could lead to social isolation
Consider how best practices in the design and management of spaces can be implemented
The value that inclusive environments can bring to owners and occupiers

Legal Framework

Equality Act 2010
Inclusive design standards contained in the Building Regulations: Approved Document M: Access to and use of buildings 2015 as amended
Planning policy and legal requirements relating to accessibility - found in planning policies and National Planning Policy Frameworks

Equality Act 2010

Provides protection against a wide range of discrimination and inequality, including the use of property as well as when dealing with people
The act ID's four types of illegal discrimination:
- Direct discrimination
- Indirect discrimination
- Harassment
- Victimisation
Extends all obligation to all controllers of let premises
Unlawful for those managing buildings to discriminate against an occupier
Lettings, sales etc must not be undertaken in a way which could discriminate or victimise a person
Landlords need to ensure all dealings with a tenant/occupier who may have protected characteristics are dealt with in accordance with the Act.

Energy Performance Certificates (EPCs)

The Government scrapped the 2025 proposal that all new tenancies should have an EPC rating of C or above - remains at a minimum of E
By 2028, this requirement may be extend to all existing tenancies.
Exemptions under certain circumstances, such as where improvements are not cost-effective/listed buildings etc
£200 civil fixed penalty

BREEAM - The Building Research Establishment Environmental Assessment Method

A voluntary environmental assessment tool to rate new, refrub'd and operational buildings
A building's impact is rated by BREEAM assessors by reference to 9 weighted categories: energy consumption, water use, transport links, waste management, and health & wellbeing
The five ratings are: PASS / GOOD / VERY GOOD / EXCELLENT / OUTSTANDING

RICS Practice Information: The design delivery and management of healthy buildings: a practical guide, October 2023

Guidance offers advice for all members working with existing and new buildings
Sets out how healthy buildings impact our health, relating to building design, construction material, sound, light, water and air quality, building tech and management
Explores the role of health & wellbeing in ESG

RICS PROFESSIONAL STANDARD: RESIDENTIAL RETROFIT STANDARD, MARCH 2024

Aims to guide surveyors in the delivery of high quality consistent advice on energy retrofits to resi owners
Ensures consumers receive professional, regulated guidance on retrofit projects
Scope: covers aspects such as surveys, inspections, design, project management
Applies to a range of energy-saving improvements like solar panels, heat pumps and insulation
Mandatory from 31 October 2024
"The framework not only reinforces quality, but also aligns with broader industry movements, including potential green mortgages and incentives from lenders"

Valuation

Internal valuer - employed by a company to value the assets of the company
For internal use only - no third party reliance

Commencing a Valuation

Competence - Do you have the relevant skills, understanding, and knowledge (SUK)?
SUK - This refers to the "Skills, Understanding, and Knowledge" that a surveyor needs to have to competently carry out a valuation.

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Description

Test your knowledge on the Complaints Handling Procedure (CHP) for RICS firms. This quiz covers essential aspects like the duties owed to complainants, the complaint investigation timelines, and independent redress mechanisms. Understand the key procedures that ensure quick, clear, and impartial handling of complaints.