RICS Assessment of Professional Competence (APC) Mandatory Competencies (Professional Practice, Ethics and Business Skills) Syllabus

Mandatory Competencies (Professional Practice, Ethics and Business Skills) syllabus — full chapter and topic list

Expand any chapter to see its topics and sub-topics. This is the whole examinable outline for Mandatory Competencies (Professional Practice, Ethics and Business Skills) in RICS Assessment of Professional Competence (APC), not a summary of it.

1. 1

   Ethics, Rules of Conduct and Professionalism

   5 topics

   • RICS Rules of Conduct and the five ethical principles
     • Honesty, integrity and acting within scope of competence
     • Providing a good-quality and diligent service
     • Acting in a way that promotes trust in the profession
     • Treating others with respect and encouraging diversity and inclusion
   • Identifying, declaring and managing conflicts of interest
     • Own-interest, party and confidential information conflicts
     • Informed consent and dual agency conditions
     • Conflict checks and information barriers
   • Bribery, corruption, money laundering and fraud
     • Bribery Act 2010 and adequate procedures
     • Anti-money laundering checks and client due diligence
     • Reporting suspicious activity and the role of the MLRO
   • Ethical decision-making frameworks and tests
     • Applying the RICS ethics decision tree
     • Whistleblowing and raising concerns
   • Gifts, hospitality and incentives policy
2. 2

   Client Care, Complaints and Conduct of Business

   5 topics

   • Terms of engagement and scope of service
     • Setting fees, basis of charge and disbursements
     • Confirming instructions in writing
   • Complaints Handling Procedure (CHP) requirements
     • Mandatory CHP and approved redress schemes
     • Stages of escalation and time limits
   • Professional indemnity insurance (PII) obligations
     • Minimum cover levels and run-off cover
     • RICS-approved minimum policy wording
   • Client money handling and the Client Money Protection Scheme
   • Treating clients fairly and managing expectations
3. 3

   Accounting Principles and Business Planning

   4 topics

   • Reading and interpreting financial statements
     • Profit and loss account, balance sheet and cash flow
     • Key ratios: liquidity, gearing and profitability
   • Management accounts and credit control
   • Business planning, resourcing and risk management
     • SWOT and PESTLE analysis
     • Cash flow forecasting and working capital
   • Taxation awareness relevant to surveying practice
     • VAT, capital gains and corporation tax basics
4. 4

   Communication, Teamworking and Data Management

   5 topics

   • Written, oral and graphic communication skills
   • Negotiation techniques and stakeholder management
   • Conflict avoidance and dispute resolution awareness
     • Negotiation, mediation, adjudication and arbitration
   • Data management, GDPR and information security
     • Lawful basis for processing and data subject rights
     • Cyber security and confidentiality of records
   • Inclusive environments and accessibility awareness
5. 5

   Sustainability and Health and Safety

   4 topics

   • Sustainability principles in the built environment
     • Net zero carbon, embodied and operational carbon
     • ESG, EPCs and MEES compliance
   • CDM Regulations 2015 and site safety duties
     • Roles of client, principal designer and principal contractor
     • Construction phase plans and the F10 notification
   • Personal safety, lone working and site inspections
   • Asbestos, hazardous materials and the Building Safety Act 2022

Mandatory Competencies (Professional Practice, Ethics and Business Skills) flashcards for RICS Assessment of Professional Competence (APC)

23 of 60 cards from the Mandatory Competencies (Professional Practice, Ethics and Business Skills) deck — real questions with worked answers.

1. What are the five ethical principles in the RICS Rules of Conduct that all members and firms must uphold?

   1) Honesty and integrity, 2) Competence (service to the standard of a competent professional), 3) Service in the public interest, 4) Treating others with respect and encouraging diversity/inclusion, 5) Acting responsibly and being accountable. They underpin the five Rules of Conduct introduced in the 2022 edition.

2. How many Rules of Conduct are in the current (2022) RICS Rules of Conduct, and what is their general structure?

   There are five Rules of Conduct, each supported by example behaviours. Rule 1: act with honesty and integrity. Rule 2: maintain professional competence. Rule 3: provide good-quality, diligent service. Rule 4: treat others with respect and act in a way that promotes trust. Rule 5: act in the public interest, report concerns and support others.

3. Define a conflict of interest as understood under the RICS Conflicts of Interest professional statement.

   A conflict of interest is a situation where the duty owed to one client/party conflicts with the duty owed to another (a 'party conflict'), or where a personal/own interest conflicts with the duty owed to a client ('own interest conflict'). It also includes 'confidential information conflicts' where holding privileged information for one party could benefit or disadvantage another.

4. Under the RICS Conflicts of Interest professional statement, what three steps must a surveyor take when a conflict is identified?

   1) Identify the conflict (through checks and ongoing monitoring); 2) Disclose/declare it in writing to all affected parties; 3) Obtain informed written consent before proceeding, and only proceed if you are satisfied it is in the parties' interests, with appropriate safeguards (e.g. information barriers). If consent cannot be obtained or safeguards are inadequate, decline or cease to act.

5. What is the difference between a 'party conflict', an 'own interest conflict' and a 'confidential information conflict'?

   Party conflict: duties to two or more different clients on the same/related matter conflict. Own interest conflict: the surveyor's (or firm's) personal interest conflicts with the duty to a client. Confidential information conflict: a duty to keep one client's information confidential conflicts with a duty to disclose it to another client.

6. What is an information barrier (Chinese wall) and when may it be used in managing a conflict of interest?

   An information barrier is a physical and procedural separation (separate teams, restricted file/IT access, supervision) used to prevent confidential information passing between parties. It may be used only with the informed written consent of all affected parties and where the surveyor is satisfied the barrier is robust enough to protect each party's interests.

7. Name the four UK Bribery Act 2010 offences relevant to surveying practice.

   1) Offering, promising or giving a bribe (Section 1); 2) Requesting, agreeing to receive or accepting a bribe (Section 2); 3) Bribing a foreign public official (Section 6); 4) Failure of a commercial organisation to prevent bribery (Section 7) — a corporate offence with a defence of having 'adequate procedures' in place.

8. What is the statutory corporate defence to the Section 7 'failure to prevent bribery' offence under the Bribery Act 2010?

   A commercial organisation has a defence if it can prove it had 'adequate procedures' in place designed to prevent persons associated with it from undertaking bribery. The MoJ guidance sets six principles: proportionate procedures, top-level commitment, risk assessment, due diligence, communication/training, and monitoring/review.

9. What are the three principal money laundering offences under the Proceeds of Crime Act 2002 (POCA)?

   1) Concealing, disguising, converting or transferring criminal property (s327); 2) Entering into or being concerned in an arrangement facilitating the acquisition/use of criminal property (s328); 3) Acquiring, using or possessing criminal property (s329). There are also failure-to-disclose and tipping-off offences under the regulated sector provisions (ss330–333).

10. What is a Suspicious Activity Report (SAR) and to whom is it submitted?

    A SAR is a disclosure made when a regulated person knows or suspects (or has reasonable grounds to suspect) money laundering or terrorist financing. It is submitted to the firm's Money Laundering Reporting Officer (MLRO), who reports to the National Crime Agency (NCA). Making a SAR can provide a defence to the principal money laundering offences.

11. List the components of Customer Due Diligence (CDD) required under the Money Laundering Regulations 2017.

    1) Identify the client and verify identity using reliable, independent source documents; 2) Identify and verify any beneficial owner; 3) Assess and obtain information on the purpose and intended nature of the business relationship; 4) Conduct ongoing monitoring. Enhanced Due Diligence (EDD) applies to high-risk situations (e.g. PEPs, high-risk countries).

12. Distinguish fraud, bribery and money laundering in a professional practice context.

    Fraud: dishonestly making a false representation, failing to disclose, or abusing position to make a gain or cause loss (Fraud Act 2006). Bribery: giving/receiving an advantage to improperly influence a person performing a function (Bribery Act 2010). Money laundering: processing the proceeds of crime to disguise their illegal origin (POCA 2002).

13. Outline a structured ethical decision-making framework a surveyor can apply when facing a dilemma.

    1) Identify the facts and the ethical issue; 2) Identify who is affected and your duties to them; 3) Consider relevant RICS Rules, standards and law; 4) Consider available options and their consequences; 5) Apply ethical 'tests'; 6) Make and document a reasoned decision; 7) Seek advice (line manager, RICS, ethics helpline) where uncertain.

14. What practical 'tests' does RICS suggest for checking whether a decision is ethical?

    Common tests include: the 'sunlight/transparency test' (would you be comfortable if your decision were made public?); the 'media test' (how would it look reported in the press?); the 'professional test' (what would the RICS or a competent professional expect?); the 'colleague/family test' (would you be comfortable explaining it to peers or family?); and 'is it legal, fair and in the public interest?'.

15. What is the key risk presented by accepting gifts and hospitality, and how should a firm's policy manage it?

    The risk is that gifts/hospitality could create (or appear to create) an improper influence, conflict of interest, or constitute bribery. A policy should set proportionate value thresholds, require registration of gifts/hospitality in a register, require senior approval above thresholds, prohibit cash and anything given to influence a decision, and ban acceptance during tender/decision periods.

16. What must terms of engagement (the letter of engagement) typically set out before work begins?

    Scope of service and exclusions, the parties, fee basis and payment terms, basis of liability and any caps, PII confirmation, complaints handling procedure, conflict of interest position, confidentiality/data protection, duration/termination, governing law, and confirmation of competence. They form the contract and should be agreed in writing before starting.

17. Why is clearly defining the 'scope of service' important, and how does it relate to professional liability?

    A clear scope defines exactly what the surveyor will and will not do, manages client expectations, and limits liability by preventing 'scope creep'. Liability generally flows from the agreed scope; ambiguous or open-ended scopes increase the risk of negligence claims for matters the surveyor did not intend to cover.

18. What are the mandatory requirements for a Complaints Handling Procedure (CHP) under RICS rules?

    Every RICS-regulated firm must have a written CHP that: is given to clients on request and at the outset; has two stages (firm's own internal stage, then an approved independent redress provider); names the redress scheme; sets clear timescales for acknowledgement and response; and keeps a complaints log. The CHP must be free to the complainant at the first stage.

19. What is the role of an independent redress scheme in a firm's CHP, and give examples relevant to surveyors.

    If a complaint cannot be resolved internally, it is referred to an RICS-approved independent redress provider for an impartial decision. Examples include the Property Ombudsman (TPO), the Property Redress Scheme, and the Centre for Effective Dispute Resolution (CEDR). Firms dealing with consumers must belong to an approved scheme.

20. What are RICS firms' obligations regarding Professional Indemnity Insurance (PII)?

    Regulated firms must hold PII that meets RICS minimum policy wording, has adequate cover for the size/type of work, includes run-off cover when a firm ceases, and meets minimum limits of indemnity based on turnover. Cover must be on an 'each and every claim' basis (or with maximum permitted aggregate) with capped excesses for consumer claims.

21. What are the RICS minimum levels of indemnity for PII based on firm turnover (UK requirement)?

    Minimum limit of indemnity is set by turnover band: turnover up to £100,000 → at least £250,000; turnover £100,001–£200,000 → at least £500,000; turnover over £200,000 → at least £1,000,000 each and every claim. Firms must also maintain run-off cover (typically a minimum period) after ceasing to practise.

22. What is 'run-off cover' in PII and why is it required?

    Run-off cover is PII that continues to protect a firm (and its clients) after the firm has stopped trading, covering claims that arise later in respect of past work. It is required because PII is written on a 'claims-made' basis, so without run-off, claims notified after closure would be uninsured. RICS requires a minimum run-off period.

23. What is client money and what are the core RICS rules for handling it?

    Client money is money held or received for a client (or third party) that is not the firm's own fee. RICS rules require it to be held in a separate, identifiable client bank account (designated as 'client'), kept distinct from office money, reconciled regularly (typically monthly), only used for its intended purpose, and accounted for with proper records and audit.

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