RICS History and Governance Flashcards
(21 cards)
What does RICS stand for?
Royal Institution of Chartered Surveyors
When was RICS founded?
1868
What sets out the governance for RICS?
RICS Regulations and Bye-laws set out the governance for RICS.
What is a Royal Charter and when was RICS granted one?
A Royal Charter is document that is signed by the monarch of a country on the advice of the Privy Council, and that gives an organisation independent legal standing and particular rights.
RICS was granted a Royal Charter in 1881.
What is the motto of the RICS and what does it mean?
Est Modus in Rebus (Latin) = there is measure in all things
How many RICS members are there?
Over 130,000 members and candidates in over 140 countries.
What are the levels of RICS membership?
FRICS, MRICS, AssocRICS, Trainee / Student
How do you become a fellow?
Assessor to consider evidence of achievement of 4 characteristics:
1) 5 or more years MRICS
2) Leadership role
3) Professional / technical achievement
4) Academic achievement
5) Raised profile of RICS
Portfolio of professional achievement and CPD record required.
What benefits are there to being an RICS member?
1) Market advantage - RICS status and standards gives a competitive advantage
2) Recognition - promotion of your professional excellence to governments and markets
3) Knowledge - international practice standards, professional guidance, CPD and knowledge sharing
4) Status - will provide client confidence
5) Network - access to professionals worldwide
Why do you want to be MRICS?
● Since starting in the profession as an apprentice I have always had the ambition to become MRICS
● I want to be part of a prestigious organisation which allows me to progress my career in an industry I am passionate about.
● It will give me the recognition and status which is greatly valued by clients.
What main roles does the RICS have?
● Maintain highest standards of education and training
● Protect consumers through strict regulation
● To be the leading source of information and independent advice
Who is the RICS leadership team?
Presidential Team
President: Justin Sullivan - currently stepped aside whilst regulatory process takes place. He has referred himself to the Standards and Regulation Board due to his involvement as an expert witness in High Court proceedings.
Acting President / President Elect: Nicholas Maclean (acting chair of governing council)
Acting President Elect / Senior Vice president: Maureen Ehrenberg
Executive Team
Chief Executive Officer: Justin Young
What is the RICS governance structure?
● Governing Council - provides management and strategic direction
● Standards and Regulation Board reports to the Governing Council and regulates the profession
● RICS Board reports to the Governing Council and directs RIC affairs (lay members and members)
What are the current RICS Regulations and what do they include?
Regulations as approved by Governing Council (Updated June 2024)
● Rules, procedures and processes for members and firms
● Add further detail to the bye-laws
● Set out the different classes of membership and details of when fees are payable etc.
1) Definitions
2) Membership and registration
3) Designations
4) Contribution to funds
5) Conduct
6) Governing Council, officers and staff
7) Subordinate boards, committees and groups
8) Procedure for General Meetings and voting
9) Accounts and audit
10) General
What are the current RICS Bye-laws and what do they include?
RICS Bye-Laws 2020
● Set out how RICS is regulated in accordance with the Royal Charter
1) Definitions
2) Membership and registration
3) Designations
4) Contribution to funds
5) Conduct
6) Governing Council, officers and staff
7) Subordinate boards, committees and groups
8) Procedure for General Meetings and voting
9) Accounts and audit
10) General
What is the Levitt review?
● RICS commissioned a treasury management audit in 2018
● Four non-Executive Board members of RICS raised concerns that the audit had been suppressed and were subsequently dismissed from the Management Board.
● Independent review by Alison Levitt, commissioned by RICS in January 2021, published September 2021.
Conclusions:
● Non-Executive Board members’ concerns were legitimate and that they were wrongly dismissed.
● Report eluded to an internal power struggle due to lack of clarity on responsibilities of the various RICS Boards, senior leadership and management.
● Review included 18 recommendations e.g greater transparency, governing council to have more oversight over internal dealings, all of which were accepted by RICS.
What is the Bichard review?
An independent review commissioned by RICS in 2021 following Levitt Review.
● The purpose of the review was to clarify the purpose of the RICS and make recommendations on its governing structure.
● Included consultation with members and external stakeholders.
● Published in June 2022 including 36 recommendations in 7 key areas
1) Focus on public interest including amendment to the Royal Charter and creating a public interest panel
2) Maintain self-regulation through greater independence of regulatory functions
3) Focus on diversity and inclusion
4) Increased member engagement and focus on younger members
5) Independent review of governance every 5 years
6) Simplified and accountable governance structure
7) Greater leadership on important society matters such as sustainability and climate change
What are the types of RICS documents?
Changes following the Bichard Review:
1) Professional Standard Documents
● Set out the requirements for competent and ethical practice
● Mandatory where ‘must’ is used
● Best practice where ‘should’ is used
2) Practice Information Documents
● Not mandatory
● Supplementary guidance
3) RICS Practice Alerts
● New web page alerting professionals to areas of risk
What is the role of RICS?
● Maintain highest standards of education and training
● Protect consumers through strict regulation
● To be the leading source of information and independent advice
What do you understand by the term self-regulation?
In the context of RICS, RICS is self-regulated and internally monitored meaning that it is not regulated by the government or external parties.
What is the RICS Regulatory Framework document 2022?
This framework is based on the recommendations of the Bichard RICS Review and ensures greater independence, transparency, and autonomy within the regulatory function. It outlines the responsibilities of the Standards and Regulation Board (SRB) and their relationship with the Council and RICS Board.
