Annual Retention Fee and Certificate of Professional Indemnity Insurance - Frequently Asked Questions (14/12/2001)
Retention Fee
Q. How can you justify the fee?
A. The fee is calculated so as to provide ARB with the income it needs to carry out its statutory duties under the Architects Act 1997. ARB is empowered by an Act of Parliament to set a retention fee figure, and we have a statutory authority to collect it. Details of the retention fee for 2001 are set out on page 12 of the 2000-2001 Annual Report.
Q. Why was there no increase in the fee this year?
A. Historically, there has not been a year on year increase in the fee. ARB reviews the situation annually, and will decide future fee levels according to the prevailing financial climate at the time.
Q. I am retired - why can't I pay a reduced fee?
A. ARB is not a club or a membership organisation requiring an annual subscription. You don't "join" ARB - as a statutory body, registration with ARB is mandatory if you wish to practise as an architect.
If you have retired from practice, there is no statutory requirement for you to maintain registration. Further details can be found on our fact sheet "Resigning from the Register". A copy of this can be found on our website under "Registration" or alternatively, we can send you a copy on request.
Q. Why do I need to pay a retention fee, and what do I get for my money?
A. Payment of the fee allows you the unique privilege of calling yourself an architect. The title "architect" is protected, and prosecutions can follow for unauthorised use. In addition, architects who bring the profession into disrepute are dealt with under ARB's disciplinary processes.
The Board also undertakes work on prescribed qualifications to ensure that new entrants to the profession are properly qualified and competent.
These activities help to engender consumer confidence, because they have the assurance of knowing that they are employing an architect who is registered with the statutory regulator, and who adheres to a set of professional standards and practice.
Q. Why is there a cut-off date?
A. Although the fee is due for payment on 1 January each year, under the Board's General Rules, we allow 90 days for payment to be made. We accept payments up to 31 March.
Professional Indemnity Insurance
Q. Why has the minimum level of indemnity been raised to £250,000?
A. The Board consulted widely amongst the building and construction industry and consumer groups, and the consensus view was that this figure was the minimum required to meet the realities and problems in the building industry today.
The Board understands that there might be an increase in your annual premium. It is appreciated that while this might be onerous for you, it seems not unduly prohibitive for professional people, given the protection it provides both to you and to your clients.
Q. Can you recommend the name of an insurer?
A. ARB does not have a recommended list. However, at the end of this article, there are the names and addresses of some insurance agencies who are active in this field. You are nonetheless reminded to seek appropriate advice and guidance as to your PII status and the suitability of any particular policy.
Q. Why should I complete the certificate of compliance?
A. The Board, under the provisions of the Architects Act 1997, has the statutory power to issue a code laying down standards of professional conduct. Standard 8 of the Architects' Code: Standards of Conduct and practice, upon which the profession and others were consulted, now requires registered persons to provide a certificate of compliance to the Board.
Q. What happens if I don't return a completed certificate?
A. Failure to return a completed certificate would constitute a breach of Section 8 of the Architects' Code, and would lead to disciplinary proceedings before the Professional Conduct Committee (PCC) for unprofessional conduct. Should this occur, you would be entitled to make representations, and if found guilty, you could be fined up to £2500, suspended or removed from the Register. PCC findings are a matter of public record, and are posted on ARB's website.
Q. What happens if I pay my fee, but don't return a completed certificate?
A. As with the previous instance, failure to return the certificate would be considered a disciplinary offence. Your name would remain on the Register, but you would have to appear before the PCC.
Q. What are the consequences if my name is removed from the Register?
A. You would be unable to use the title "architect" while engaging in the business or practice of architecture. ARB monitors use of title, and if it were found that you had been misusing it, you would be prosecuted in the criminal courts.
Q. I wasn't aware of any impending change to ARB's regulations. Why wasn't I told?
A. It was reported in the 2000-2001 Annual Report (page 18 refers), and there has been extensive cover in the trade journals. A guidance note on PII cover has been prepared, and was despatched with the fee demand. If, after having read the guidance note you have any further queries, please get in touch with us.
LIST OF INSURERS/BROKERS FOR ARCHITECTS' PII
RIBA Insurance Agency Ltd
133 Hounsditch
London
EC3A 7AH
Tel: 020 7560 3000
RIAS Insurance Services Ltd
Orchard Brae House
30 Queensferry Road
Edinburgh
EH4 2HJ
Tel: 0131 311 4292
The Wren Insurance Association Ltd
New City Court
20 St Thomas Street
London
SE1 9RR
Tel: 020 7407 3588
Griffiths and Armour Group
Drury House
19 Water Street
Liverpool
L2 0RL
Tel: 0151 236 5656
HSBC Insurance Brokers Ltd
Bishops Court
27-33 Artillery Lane
London
E1 7LP
Tel: 020 7247 5433
Marsh Ltd
Sackville House
143-149 Fenchurch Street
London
EC3M 6BN
Windsor Professional Indemnity Ltd
1 Great Tower Street
London EC3R 5AH
Tel: 020 7407 7144
Edgar Hamilton Ltd
City Reach
5 Greenwich View Place
Millharbour
London
E14 9NN
Tel: 020 7712 6000
Zurich
The Zurich Building
90 Fenchurch Street
London
EC3M 4JX
Tel: 020 7264 3919
AON Group Ltd
Gibraltar House
Gibraltar Walk
High Street
Wickford
Essex SS12 9AZ
Tel: 01268 764141
Alexander Forbes Risk Services Ltd
1 Seething Lane
London
EC3N 4NH
Tel: 020 7488 1388
Dickson Manchester Ltd
New Loom House
101 Blackchurch Lane
London E1 1LU
Tel: 020 7702 4700
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