Background to the RICS Flashcards
When was the RICS founded?
1968
The RICS has Royal Charter. When was this granted and by who?
Granted by Privy Council in 1881
What set out the governance of the institution?
RICS Regulations and Bye-Laws
How many members of the RICS are there?
113,000 qualified and 28,000 trainee (Dec 2023)
What are the four levels of membership?
- RICS Fellow - FRICS
- Chartered Member - MRICS
- Associate Member - AssocRICS
- RICS Student
What do you have to provide to to become a Fellow?
Evidence of achievement of FOUR fellow characteristics:
- 5 or more years at MRICS
- Leadership role
- Professional/technical achievement
- Academic achievement
- Raising profile of the RICS
AND
A portfolio of professional achievement to support application (incl. CPD)
How is the RICS governed under the terms of the Royal Charter?
By internal councils and boards
What is the Governing Council?
Has 29 members and is the RICS’s highest governing body
What does the Governing Council do?
Provides management and strategic direction to ensure the RICS fulfils to Royal Charter obligations
Who reports to the GC?
The Standards and Regulation Board and the Management Board
How many specialist professional groups are there?
17 covering property, land and construction.
Each group has an elected board and is responsible for outlining standards of competence and practice.
Who is the current Chief Executive Officer?
Justin Young
Who was the president?
Justin Sullivan
Who is the president elect?
Nicholas Maclean
What are the 3 main roles of the RICS? (2015)
- To maintain the highest ethical standards of education and training
- To protect consumers through strict regulation or professional standards
- To be the leading source of information and independent advice on land, property, construction and associated environmental issues
Who carried out a review of the internal governance failings of the RICS?
Alison Levitt QC 2021
What did Alison Levitt commision?
A full review of the RICS and the GC commissioned Lord Bichard to do this
What was Bichard commissioned to do?
- Clarify purpose of RICS (incl acting in public’s best interest)
- Make recommendations on governing structure to carry this out
- Provide proposals for incoming leadership
How many recommendations were there?
36, with 7 key areas
What were the 7 key areas?
- Increased focus on public interest remit of RICS
- Maintaining self-regulation, through greater independence for regulatory functions
- Increased focus on diversity and inclusion
- Empowering and enabling members - greater support for regional boards, member engagement and focus on younger members
- 5-yearly independent review into effectiveness and governance
- New simplified governance structure
- Greater leadership on pertinent issues - climate change and sustainability
What are the 5 Future Foundations of the RICS following the Bichard review?
November 2023
- Vision
- Mission
- Strategic goals
- Goals
- A world class organisation
What are the 5 benefits to being an RICS member?
- Status - Professional credentials provide client confidence
- Recognition - Promotion of professional excellence
- Market advantage - RICS status gives competitive advantage
- Knowledge - International practice standards, professional guidance, CPD and knowledge sharing
- Network - Access to professionals
What are the requirements for registration?
Regulation provides quality control for clients.
Firms must make a return to RICS confirming their compliance with obligations annually.
What are the RICS ‘Rules for the Regulation of Firms’ 2022?
If 50% are members then firm has to be regulated
If 25% are members then it can apply to be regulated
Each firm must nominate a Responsible Principal
Disputes concerning a firm will be heard by the RICS Standards & Regulation Board
Only RICS members and registered firms can use the logo
What does a firm’s responsible principal do?
They are obligated to ensure systems are in place to ensure compliance with regulatory and RICS requirements
What information is required by the RICS for Registration?
- Type of business and staffing details
- Name of responsible principal
- Statutory regulated activities
- Nature of clients
- Complaints handling procedure details and records
- Professional indemnity insurance details
- Client money
What is Rule One?
Members and firms must be honest, act with integrity and comply with their personal obligations, including obligations to RICS
What is Rule Two?
Members and firms must maintain their professional competences and ensure that services are provided by competent individuals who have the necessary expertise
What is Rule Three?
Members and firms must provide good-quality and diligent service
What is Rule Four?
Members and firms must treat others with respect and encourage diversity and inclusion
What is Rule Five?
Members and firms must act in the public interest, take responsibility for their actions and act to prevent harm and maintain public confidence
What is an example behaviour of Rule One?
Members and firms do not allow themselves to be influenced improperly by others (e.g. receiving gifts) or by their own self-interest.
What is an example behaviour of Rule Two?
Members and firms only undertake work that they have the knowledge, skills and resources to carry out.
What is an example behaviour of Rule Three?
Members and firms communicate with clients and others clearly and in a way they can understand.
What is an example behaviour of Rule Four?
Members and firms must respect the rights of others and treat others with courtesy.
What is an example behaviour of Rule Five?
Members and firms respond to complaints made against them promptly, openly and professionally.
Appendix A of the Rules of Conduct. What are the professional obligations of members?
- Comply with CPD requirements
- Cooperate with RICS
- Provide all info requested by the Standards and Regulation Board, or those exercising delegated authority on its behalf
Appendix A of the Rules of Conduct. What are the professional obligations of firms?
- Publish complaints handling procedure - to include ADR provided by RICS and maintain a complaints log
- Ensure all work is covered by adequate PI cover that meets RICS standard
- If having a sole principal, make appropriate arrangements for their professional work to continue if they die or something similar
- Cooperate with RICS
- Provide all info requested by the Standards and Regulation Board, or those exercising delegated authority on its behalf
- Must show designations which denote their regulation by RICS
- Report any matter they are required to report under Rules for the Registration of Firms
What is the Decision Tree?
Provides a framework of questions which members should ask themselves when facing a decision and asked to act in a potentially unethical manner
What handles disciplinary procedures?
The Standards and Regulation Board
What can trigger a disciplinary procedure?
A complaint to the RICS
An allegation by a client / third party
Or because of information received or established by the RICS
What are the three levels of disciplinary action?
- Action by Head of Regulation
- Disciplinary Panel (drawn from the independent Regulatory Tribunal)
- Appeal Panel
What actions can the Head of Regulation initiate?
- Serve a Fixed Penalty Notice
- Make a Regulatory Compliance Order
- Refer the matter to a single member of the Regulatory Tribunal for consideration
- Refer the matter directly to a Disciplinary Panel
What is a Fixed Penalty Notice?
Procedure used for breaches of the Rules and consists of a fine and/or caution
What are Regulatory Compliance Orders?
These are for low level breaches of the Rules (that can be easily corrected)
Written document that between RICS and member/firm acknowledging the breach of the Rules. It outlines the disciplinary action and the actions needed to rectify the matter (incl fine)
