Hot Topic Flashcards
What recent developments are you aware of within the RICS?
Levitt Review - Published in September 2021, following events in 2018 & 2019 in relation to treasury management processes, and the dismissal of 4 non-executive Directors.
Lord Bichard RICS Review - Commission by the RICS, enacting one of the recommendations of the Levitt report.
What is your understanding of the circumstance that lead to the Levitt Review?
A Treasury Management audit was commission in 2018, and four Non-Executive Board members raised concerns that was being suppressed, and were subsequently dismissed.
The Governing Council commissioned an independent review in early 2021, with the objectives:
- To consider how the report was commission and dealt with
- Whether any shortcomings represented a failure in governance
- To make recommendations for the future
What were the findings of the Levitt review?
Appropriate Governance principles were not followed.
Lack of clarity around roles within the boards, leadership and management.
These matters lead to an internal power struggle.
CEO, President, Char of Governing Council and Chair of Management Board all stood down.
What were the Levitt Reports Key Recommendations?
The RICS accepted all 18 recommendations.
- Commissioning an Independent Review into Governance
- Seperation of Presidential Team from Management Board
- Publishing of a statement defining RICS Values & Culture
- Regular review of Board and Committee members
- Public Apologies
What action was taken by the RICS following the Levitt review?
Following the findings of the Levitt review, the Governing Council commissioned Lord Bichard to undertake a “wide ranging examination of purpose, governing and strategy”
What were the key elements of the Ethics Statement issued following the Levitt Review?
- Integrity
- Transparency
- Inclusion
- Collaboration
- Advocacy
- Passion
(If I Could Trade Places)
What is the relevance of Lord Bichard (Michael Bichard)?
Commission by the RICS, enacting one of the recommendations of the Levitt report.
What was the remit of Lord Bichard’s review?
The Review aimed to clarify the purpose of RICS, make proposals on its governing structure, and make proposals for the incoming leadership and governing body on the future culture and strategy of the Institution.
What were the finding’s of Bichard’s review?
Urgent and inarguable need for change
Change required to provide strong foundation for Instituations purpose.
What are the key recommendations of Bichard’s review?
Bichard made 36 recommendations in total.
- A renewed and increased focus on the public interest remit of RICS, including amending the Royal Charter and creating a public interest panel to advise Governing Council
- Maintaining self-regulation, through greater independence for regulatory functions
- Increased focus on Diversity and Inclusion across the profession and within RICS governance
- Empowering and enabling members through greater support for regional boards, alongside increased member engagement, with renewed focus on younger members
- Undertaking an independent review of RICS’ governance and effectiveness at delivering against its Charter for the public advantage once every five years
- A new simplified, clear, accountable governance structure
- Showing greater leadership on the issues that matter most to society, such as sustainability and climate change
What are the timescales for implementing Bichard’s reforms?
Three phases
- Phase one would focus on transitioning the Chair of Governing Council’s responsibilities to the President; recruiting a new Chair of the Board, a permanent leader for the Executive and a Chair of the combined Nominations and Recruitment Committee. There would be a consultation over changes to professional groups and a framework document for SRB.
- Phase two would focus on transitioning Management Board responsibilities to the new Management Board; recruiting a Senior Independent Governor and independent member and appointing Board members; and conducting elections for geographic Governing Council seats in early 2023.
- Phase three would focus on the establishment and population of the five key Committees; the new Professional Group Panels; and World Regional Boards. Elections for the new disciplinary Governing Council seats.
How has the RICS responded to Bichard’s review?
The RICS has accepted all recommendations. To be implemented over three phases.
What are the Governments recent updates on Sustainability that impact your work?
Part L updated in 2022 - new homes must produce 31% less carbon emissions. To be assessed under Standard Assessment Procedure. Builders to audit as built against design.
Existing Homes - new minimum fabric efficiency standards, reduction in U-values (Fabric Energy Efficiency Standards)
MEES - Minimum Energy Efficiency Standards for EPC ratings, enforced by Government.
From April 2023, Commercial Landlord’s will be prohibited from leasing EPC F or lower. (Exemptions where no improveiments can be mad, made devalue, 7 year payback)
What changes are you aware of recently to the RICS Standards?
New Rules Came into effect 2nd February 2022
Combine previous rules for Firms, Members and Global Professional & Ethical Standards.
Provide a simpler structure with clear examples
Increased focus on respect, diversity and inclusion.
Understanding of evolving technology
Tackling global challenges.
What is your understanding of an EWS1 Form?
The EWS1 Form is designed for residential properties such as blocks of flats, and is a methods of confirming that an external wall system has been addressed for safety by a suitable expert.
Qualified Professional conducting a fire risk appraisal of the external wall system.
It’s purpose is to ensure a valuation can be provided for a mortgage or re-mortgage on a property which features EWS.
