Q&A PRACTICE – resources.apcguide.com

Following the release of RICS Professional Standards, 'Responsible Use of Artificial Intelligence' and 'Countering bribery, corruption, money laundering and terrorist financing', these documents introduce new mandatory requirements expected of RICS members and regulated firms. These are hugely important documents for all APC candidates to be aware of and are sure to form hot topics within final assessment interviews during 2026. The following questions and answers aim to cover the anticipated hot topics for 2026 and I hope you find this a useful revision tool when preparing for your own final assessment interview. RICS Professional Standard 'Responsible Use of Artificial Intelligence in Surveying Practice' Question) Are you aware of any documents the RICS has produced on the use of Artificial Intelligence? Answer) The RICS have produced the Professional Standard, ‘Responsible use of artificial intelligence in surveying practice’. This is currently in its 1st Edition and is effective from 9th March 2026. Question) Can you please provide an overview of the RICS Professional Standard, Responsible use of artificial intelligence in surveying practice? Answer) The RICS Professional Standard, 'Responsible use of artificial intelligence in surveying practice' sets the baseline professional standards for RICS members and regulated firms using AI systems in their work. It provides the basis for the responsible use and development of AI systems by members and regulated firms. Question) What baseline knowledge must RICS members have before using AI in surveying services? Answer) Members must have a basic understanding of the types & subsets of AI, how they work, their limitations and failure modes. The risks of erroneous outputs (errors generated by the AI being adopted). Inherent risk of bias for example valuation models trained on data with a particular bias to a specific region or type of property may generate inaccurate valuation outputs for example bias data inputs may skew results, this may be done unethically to generate higher or lower property valuations. Data usage and the risks relevant to AI systems for example if the AI model is trained using poor data, it is likely to produce inaccurate outputs. Question) What does “material impact” mean in the context of AI use? Answer) An output has a material impact if the use of AI is capable of influencing the delivery of the service. Typically, AI outputs that have a material impact on the delivery of a service will be outputs that affect how the work of the surveyor is rendered meaningful. For example outputs summarising documents that are then relied on when writing a report, outputs composing all or the significant parts of an opinion or outputs recommending which part of a building to investigate for a fault can be considered to have a material impact on the delivery of the service. Question) What must a member do if AI use has a material impact on service delivery? Answer) They must make a written record of that determination and the reasoning behind it. Question) What are the data governance requirements for firms using AI? Answer) Firms must safeguard private and confidential data by: Secure storage (e.g., encryption/backups). Restricting access. Annual staff training. Anonymising data. Avoiding uploading confidential data unless written consent is obtained and risks verified as acceptable. Question) What must be recorded before using any AI system with material impact? Answer) A written assessment of whether AI is the most appropriate tool, considering: Type of surveying service. Nature of the task. Alternative tools. Environmental impact. Stakeholder impact. Data risks. Risk of erroneous or bias output and consequences. Question) What must a written decision on AI output reliability include? Answer) The written decision must include: Assumptions made. Key concerns and reasons. How concerns might be reduced. Impact on overall reliability. Whether the output can reasonably be used for its intended purpose. Prepared under supervision of a qualified surveyor. Question) When must clients be informed that an AI output cannot be relied upon? Answer) If the member determines an output cannot be used for its purpose, they must inform the client in writing, with reasoning or a summary. Question) What must be disclosed to clients before using AI? Answer) Members must disclose in writing, in advance: When AI will be used. Parts of the process AI will be involved in. Question) What AI-related information must be included in the terms of engagement? Answer) The following AI related information must be included: When and where AI is used. Professional indemnity cover (if available). How to contest use of AI. Redress processes. How to opt out of AI use, if possible. Question) What information must a firm provide to a client who requests explainability? Answer) The following information must be provided: Type of AI system. Basic working principles and limitations. Due diligence conducted. Risk identification and management. Reliability decisions. RICS Professional Standard 'Countering bribery, corruption, money laundering and terrorist financing' Question) Are you aware of any documents the RICS publishes on anti bribery and money laundering? Answer) The RICS have produced a professional standard titled ‘Countering bribery, corruption, money laundering and terrorist financing’ which is currently in its 2nd edition. The RICS Rules of conduct also stipulate under Rule Number 1 that Members and firms do not facilitate any financial crime including money laundering, tax evasion, bribery or corruption. Question) Can you please provide an overview of the RICS Professional Standard, Countering bribery, corruption, money laundering and terrorist financing? Answer) The standard aims to help RICS members and regulated firms detect, prevent and respond to risks relating to bribery, corruption, money laundering, terrorist financing and sanctions. It explains mandatory requirements (‘must’) and best practice (‘should’) to ensure firms uphold ethical behaviour, comply with law and maintain market integrity. It applies globally and takes precedence except where local legislation stipulates otherwise. Question) Can you please explain your understanding of the Red Flag Indicators contained within the Professional Standard, Countering bribery, corruption, money laundering and terrorist financing? Answer) The RICS have produced a ‘Red Flag Indicators’ document that outlines five categories of red flags that property professionals need to consider to prevent bribers, money laundering and terrorist financing, these categories are: The Client – if the client is secretive about who they are, their source of funds or the reason for the transaction. The Parties – if the parties reside in high-risk regions such as Algeria, Ecuador, Ethiopia, Syria, Yemen, Iraq, Iran or North Korea or have connections to a family or business which causes doubt as to the genuine nature of the transaction. The Source Of Funds – if there are large cash payments, unexplained payments from a third party or there are loans from non-institutional lenders. The Transaction – if the transaction has unusual elements such as the size, regularity of payments, complicated structures or steps in making transactions. The Instructions – if the client is not local to you yet they have chosen to use your services, has a willingness to pay high fees or regularly changes their legal advisers. Question) What are the mandatory anti-bribery requirements for RICS Members? Answer) The mandatory requirements for RICS Members are that: Members must not offer or accept, directly or indirectly, anything that could constitute a bribe. Members must have adequate knowledge of bribery and corruption to be able to comply with the requirements of this professional standard. Members must report any activity they are aware of that breaches applicable anti-bribery and corruption laws to the nominated reporting officer or senior management responsible for reporting such matters to the relevant authorities (as specified in local legislation). Question) What are the mandatory anti-bribery requirements for RICS Regulated Firms? Answer) The mandatory anti-bribery requirements for RICS Regulated Firms are that: Firms must not offer or accept, directly or indirectly, anything that could constitute a bribe. Firms must have plans in place to comply with applicable laws governing bribery and corruption and ensure that these are followed. Firms must report any activity that may give rise to suspicion that anti-corruption laws will be breached; where there is no local legislation the activity should be recorded and, if possible, reported to a senior manager. Firms must act with due diligence to perform periodic written evaluations of the risks facing the firm that may lead to the facilitation of bribery or corruption. In determining the appropriate level of due diligence, the firm may consider the type of business activities it engages in and the environment in which it operates. Firms must document (in writing) and retain information detailing how the firm has met the requirements of this professional standard, including for the purpose of future compliance. Question) What should a member do if the professional standard conflicts with local legislation? Answer) In the event that the professional standard conflicts with local legislation, the applicable local law must take precedence. This is known within the professional standard as a departure. All departures from the professional standard must be recorded in writing by the member and firm and note the following: Conflicts between applicable laws and the professional standard. The deviations taken from the professional standard because of the conflicts. Any additional reporting or controls implemented based on applicable laws. Question) Please provide some examples of bribery & corruption risks in the built environment? Answer) Examples of bribery & corruption risks include: Bribery - The offering, giving, receiving, or soliciting of something of value to influence the actions of an individual in a position of power. Example - A contractor gives a project manager an expensive “hospitality package” (e.g., concert tickets, luxury travel) in exchange for being awarded a subcontract without a competitive tender. Artificially Inflated Prices for Contracts - Manipulating pricing to be significantly higher than market value, often facilitated by collusion or corrupt agreements between parties. Example - A supplier agrees with the quantity surveyor to submit an inflated quote for materials. The inflated amount is hidden within rate buildups and is later shared between the supplier and the QS as a corrupt profit. Kickbacks - A form of bribery where a portion of the payment made to a contractor or vendor is returned to the person who awarded the contract. Example - A site manager awards a landscaping contract to a specific firm. Once paid, the firm secretly transfers 10% of the contract value back to the manager as a “thank-you”. Introduction Payments - Payments made to individuals for introducing or recommending a particular contractor, consultant, or supplier which is often undisclosed and unethical. Example - An architect is paid an under the table fee by a specialist cladding contractor for recommending them to the client, despite better value alternatives being available. Signing Off Timesheet Submissions with Inflated Hours - Approving timesheets that exaggerate the number of hours worked, enabling staff or labour providers to receive payment for work not done. Example - A supervisor knowingly approves weekly timesheets showing 60 labour hours when only 40 were actually worked, in exchange for a small cash payment from the labour agency. Granting of Planning Consents - Improper influence or bribery used to secure planning approvals or favourable conditions from public officials. Example - A developer gives gifts to a local planning officer or councillor to ensure a planning application is approved quickly or with fewer environmental constraints. Question) What should a firm’s anti-bribery policy include? Answer) A firm's written anti-bribery policy should: Include a risk assessment. Be updated annually. Contain appropriate governance and controls that are proportionate to the type of work the firm does. Encourage transparency in the organisation with registers for: Gifts received or offered. Hospitality or entertainment. Charitable Donations & Sponsorships. Potential Conflicts of Interest. Provide clear guidance for staff so they understand their role in preventing bribery and corruption. Appoint a contactable person in the company to discuss compliance and ethics matters. Best practice for the largest RICS-regulated firms is to formally appoint a local compliance and ethics champion. Publish a code of conduct for staff to follow. Carry out appropriate due diligence on third-party suppliers to ensure they are operating in line with local anti-bribery and corruption legislation and standards where they exist. Question) What is a facilitation payment and how should members deal with these? Answer) Facilitation payments or ‘grease payments’ are small, unofficial payments made to a public official or employee to speed up or secure routine administrative actions that the payer is already entitled to. They do not legally change the outcome of a decision—they simply “grease the wheels” to make something happen faster. Although they may be common in some countries, facilitation payments are illegal in the UK under the Bribery Act 2010, and most companies prohibit them. Facilitation payments must not be made unless explicitly authorised by the firm’s senior management, even if they are legal locally. They are discouraged within the standard even if legal in the local region. Question) What are mandatory anti-money laundering obligations for regulated firms? Answer) The mandatory anti-money laundering obligations for regulated firms are they must: Not facilitate money laundering. Report suspicions. Avoid tipping off - this is a criminal offence where an individual informs that an investigation is ongoing or a report has been filed against them. Carry out customer due diligence and verify their identity. Retain information securely. Review money laundering & terrorist financing risks periodically. Conduct enhanced checks where risks are higher (for example using crypto currency). Examine supply chains. Ensure reliance on third parties is appropriate. Question) What is the risk associated with digital currency payments? Answer) Digital assets can obscure the source of funds and are frequently used in money laundering and terrorist financing. RICS Regulated firms must carry out enhanced due diligence for cryptocurrency transactions, including verifying origin, beneficial ownership and transaction purpose. Question) What is trade-based money laundering (TBML) and how does it appear in property work? Answer) TBML involves disguising criminal proceeds using trade transactions. In real estate, it may appear as incorrect invoicing, refund requests, over or underpayments. Such irregularities should be escalated to compliance. Question) What is tipping off, and why is it prohibited? Answer) Tipping off is informing a client that a suspicious activity report or investigation is underway. It is a criminal offence in most jurisdictions because it compromises investigations. Question) When should enhanced due diligence be carried out? Answer) Enhanced due diligence is required when: The client is high-risk. The transaction is unusual or complex. Jurisdictions present higher risk. Digital currency is used. Wealth profile does not align with the transaction. Question) What are the steps in standard customer due diligence? Answer) Standard customer due diligence involves: Identifying the client. Verifying identification. Performing additional checks where necessary (risk-based). Question) What are the mandatory sanctions requirements for firms? Answer) Firms must: Not transact with specially designated nationals. Implement effective systems and controls. Train staff. Screen clients. Periodically review sanctions risks. Question) What should a member do if they suspect a client is sanctioned or a specially designated national? Answer) They must seek advice immediately from senior management and avoid continuing business until the risk is clarified. Question) What is the role of a Compliance & Ethics Champion? Answer) A senior individual appointed to oversee customer due diligence, ethics and money laundering controls, support good practice, help identify emerging risks and assist internal investigations. Question) What is the importance of whistleblowing policies? Answer) Larger firms should have a formal policy explaining reporting methods and protections. Smaller firms may manage with simpler processes but must still support a culture of speaking up. Failure to Prevent Fraud Legislation Question) What is the “Failure to Prevent Fraud” offence under the Economic Crime and Corporate Transparency Act? Answer) On 1 September 2025, the new failure to prevent fraud offence introduced by the Economic Crime and Corporate Transparency Act 2023 (ECCTA) came into force. The Failure to Prevent Fraud offence makes large organisations criminally liable if an associated person (employee, agent, subsidiary, or contractor acting on the organisation’s behalf) commits a fraud offence. To be considered an offence, the failure to prevent fraud must have been carried out for the organisation’s benefit where the organisation did not have reasonable fraud-prevention procedures in place. The intention is to encourage stronger internal controls, governance and transparency. Question) Which organisations does the offence apply to? Answer) The offence applies only to large organisations, meaning they meet two out of three of the following criteria where the firm must have: More than 250 employees. A turnover in excess of £36 million. A balance sheet total in excess of £18 million. Question) Who can commit the fraud that triggers the offence? Answer) Any associated person acting for or on behalf of the organisation. This includes: Employees. Agents. Subsidiaries. Contractors or consultants acting on the organisation’s behalf. Question) What must an organisation do to avoid liability? Answer) They must demonstrate that they had reasonable procedures in place to prevent fraud. The Government outlines Six Principles: Proportionate Procedures. Top-Level Commitment. Risk Assessment. Due Diligence. Communication and Training. Monitoring and Review. Question) Can organisations be prosecuted under this offence? Answer) Yes if an associated person commits a fraud offence and the organisation cannot demonstrate reasonable preventive controls, the organisation can be prosecuted. There is no need to prove senior management involvement, making it similar to the “Failure to Prevent Bribery” offence. Economic Outlook for 2026 & RICS Leadership Changes Question) What are the key economic trends within the UK Construction industry in 2026? Answer) The UK construction industry is currently facing headwinds in the form of regulatory changes with rising expectations around sustainability targets, labour skills shortages, higher inflation, higher interest rates and accelerating advancements in technology particularly in AI. Total construction output in the UK is forecast to rise by 3.7% in 2026 following lower growth in 2025. The growth is not uniform across sectors with private housing, infrastructure and data centres out performing others. Sustainability & Net Zero Driving Material Choice - Increasing pressure from government regulation is creating demand for building materials and construction methods with high energy efficiency and low carbon emissions. Sustainable materials like engineered timber, recycled steel and alternative concretes are becoming more common. Shift towards modern methods of construction - Modern Methods of Construction such as modular build and off-site techniques are being used more to speed up delivery, reduce onsite labour, better manage quality, and reduce waste. These methods also help with supply chain issues and reduce disruptions from weather or site constraints.Labour & Skills Challenges - The workforce shortage continues to be one of the industry’s biggest headwinds. There are tens of thousands of vacancies and a demographic gap as many experienced workers approach retirement. Apprenticeship uptake is not keeping pace with demand. Alongside recruitment, upskilling and reskilling (especially in digital skills, MMC, sustainability) are critical. Firms with good workforce strategies, flexible work, diversity, better safety and wellbeing are likely to out perform others. Question) Please provide an overview of any recent changes to the RICS you are aware of? Answer) RICS will see a leadership transition in January 2026. Nick Maclean OBE will become President, succeeding Justin Sullivan, while Susanne Eickerman-Riepe FRICS will take over as Senior Vice President (SVP) from Maureen Ehrenberg. Their roles will focus on strategic growth, professional standards, and the global built environment. These changes follow the Bichard Review, which introduced major governance reforms to make RICS more transparent, accountable and member-focused, including updates to the Governing Council and Board structure. In 2025, Justin Sullivan served as President with a focus on sustainability and skills shortages, supported by Nick Maclean as President-Elect and Maureen Ehrenberg as Senior Vice President. Justin Young continues as CEO, leading organisational transformation and improving the member experience. RICS APC 2026 HOT TOPICS STUDY GUIDE To access your free copy of the RICS APC 2026 Hot Topics Study Guide, please click here. This contains essential resources for APC candidates including Revision Mind Maps, APC Diary Template, 2026 Hot Topics Study Guide, Example Submission Documents and much more. RICS APC Q&A STUDY GUIDES QUANTITY SURVEYING BUILDING SURVEYING COMMERCIAL REAL ESTATE VALUATION PROJECT MANAGEMENT

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