ARC - what does it stand for and what does it do?

ARC stands for Auditing, Risk and Compliance and provides services to Chartered Surveyors and RICS Regulated firms to help them comply with their professional obligations. ARC can provide support services and best practice solutions to help you comply with professional standards, rules and regulations.

Why is this important?

Compliance with standards and rules set by RICS is a professional obligation yet most Chartered Surveyors fail to comply. Undertaking valuation work, in particular, carries the most risk. In order to undertake most valuation work, you have to be a RICS Registered Valuer which means you are subject to RICS Regulation’s monitoring activities. If selected for a regulatory visit or review by RICS Regulation and you fail to comply with the requirements of the Valuer Registration Scheme, including compliance with RICS Valuation – Professional Standards, it can have serious consequences and can result in a fine and disciplinary action with the resulting outcome publicised. RICS can also remove you from the Scheme meaning you can no longer undertake valuation work, a core skill and revenue stream gone forever. This can also have disastrous consequences for you if your clients find out.

Avoid professional negligence claims

The world is a more litigious place than it used to be. If your clients are unhappy with your service, or your valuation, they can and will sue you for professional negligence.  The profession is still reeling from the number of claims made against Chartered Surveyors in the past. Unfortunately, Professional Indemnity Insurance providers lost confidence in Chartered Surveyors and paid out hundreds of thousands of pounds worth of claims as they were unable to defend the valuation simply because the Surveyor failed to comply. Compliance with professional rules and standards is your first and best defence against any claim of negligence against you. Professional negligence is a failure to follow your professional obligations and this includes all RICS Standards, Rules, Guidance and best practice.

RICS Assigned Risk

Professional Indemnity Insurance (PII) premiums are getting extremely expensive and PII is getting more difficult to obtain. Members and firms must not take it for granted as PII providers are getting more demanding and harder to please. If you are subject to a claim which is paid out by the PII provider this could mean that they may not offer you cover in the future. The market is shrinking and without PII cover you cannot operate in the market. Your business is effectively finished.  The number of firms who cannot obtain PII and are applying for entry into the RICS Assigned Risk Pool for cover is increasing. However, entry into the Pool is highly controlled and premiums are hideously expensive.