The RICS has set out its version of the events that led to the resignations of its entire standards and regulation board.
Earlier today, the outgoing directors of the SRB expressed their frustration with the RICS, claiming it has been “treated from the outset by the leadership more as the enemy rather than as the regulator within RICS” in a joint statement seen by EG.
In response, the RICS has given its own answers to questions regarding the situation.
Why did Dame Janet Paraskeva and the members of SRB resign?
Dame Janet Paraskeva was invited to a meeting on 23 June 2023 to discuss a number of significant matters, including reports from third parties that communications and assurances Dame Janet had given to governing council may have been at odds with those being discussed elsewhere.
The meeting was being held in accordance with our internal process for governance appointments and Dame Janet had initially confirmed that she would be attending. This would have been an opportunity for Dame Janet to respond to the matters that had been raised, but shortly before the meeting was due to take place, she decided to tender her resignation instead. Subsequently her board also tendered their individual resignations.
RICS governing council gave Dame Janet every opportunity to convey concerns and to discuss issues relating to operational changes RICS was making in line with the Bichard RICS Review. Lord Bichard recommended the creation of a knowledge and practice committee to bring together leading technical expertise from our membership and support the development of high-quality technical standards. This is part of the broad range of RICS outputs that support the surveying profession to deliver at its best.
RICS governing council agreed this required the reallocation of some technical staff and resources. The council recognised the importance of SRB retaining the authority to approve all professional standards, including technical surveying standards.
Is it true that RICS removed resource from the SRB and Dame Janet as reported? Why?
The SRB remains responsible for overseeing education and qualification, professional standards and regulatory policy, regulation and assurance, dispute resolution and the regulatory tribunal service.
The knowledge and practice committee was created following a recommendation from the Bichard RICS Review and its remit will be to support the implementation and development of technical standards, providing input to the standards and regulation board. The operational development of technical standards remains the responsibility of the expert staff team that is now working with the new knowledge and practice committee. However, the SRB retains authority for the final approval of all professional standards, including those technical standards developed by the knowledge and practice committee.
Did this step contradict Michael Bichard’s recommendations?
The Bichard RICS Review recommended the formation of a knowledge and practice committee to harness technical surveying expertise from the profession in order to develop surveying knowledge and practice, including the development of technical standards. SRB continues to set and approve all RICS standards. This enables a clear distinction between the development and subsequent approval and regulation of RICS technical standards. The governing council agreed that its decisions are in line with the recommendations.
There are different ways to operationalise Lord Bichard’s recommendations. We accepted Lord Bichard’s recommendations and they are being implemented with his input.
The SRB absolutely has autonomy to set and regulate standards and that has never been and will not be altered.
Governing council determined that it was most appropriate that the team who develop technical standards but also do wider work on practice information and professional development, should directly support the work of the knowledge and practice committee. The teams that set, approve and enforce standards remain reporting to SRB.
Was there an intentional campaign to remove Paraskeva and the SRB?
Absolutely not. Governing council approved the decision to reallocate a small number of technical surveying staff resource to support the knowledge and practice committee on 25 April 2023. While Dame Janet and SRB disagreed with this move, their views were considered by the council. But it is for the governing council to make the final decision.
RICS is dedicated to implementing the Bichard RICS Review and is committed to the autonomy of independent regulation and the role of the SRB.
Should there be external regulation of the profession?
RICS passionately believes in robust self-regulation in the public interest.
Our activities remain in full operation and there is no break in the continuity of regulatory functions. Our staff and governance bodies will continue to work on the assessment of professionals, the setting of professional standards and the regulation of the profession.
We have begun the search for a replacement chair and board members and look forward to working with them to drive forward RICS’ transformation programme.
How can RICS continue to operate in the public interest following the SRB resignations?
Working for the benefit of society is enshrined in our charter and mission.
Our activities remain in full operation and there is no break in the continuity of regulatory functions. Our member-led governing council has agreed its preferred approach to implement the recommendations of the Bichard RICS Review, which Dame Janet disagreed with, choosing instead to resign from her position.
In line with the council’s implementation of the Bichard RICS Review and the regulatory framework, the standards and regulation board is responsible for strategy, policy, governance and operational oversight of standards and regulation functions. Day-to-day operations are carried out by the dedicated and expert staff teams reporting directly to the board led by Chris Alder, the senior executive officer for standards and regulation, through a well-established series of delegations from the SRB and the governing council.
The senior executive officer for standards and regulation and his team will continue their work as the composition of the SRB transitions.
The SRB remains responsible for overseeing education and qualification, professional standards and regulatory policy, regulation and assurance, dispute resolution and the regulatory tribunal service.
We are taking forward a process to ensure Interim appointments are made to the SRB as a priority. These interim arrangements will be in place while a permanent board is recruited, to ensure continuity.
What is the process to appoint a new SRB?
We will use an independent consultant to find a shortlist of interim standards and regulation board chair candidates.
An appointment panel will be assembled to shortlist and interview a small number of candidates.
We will then look to appoint four interim members (two independent and two RICS members) following approval from governing council to reduce the SRB’s board composition to five on a short-term basis.
Once we have interims in place, we will run a full process for permanent appointments at the SRB’s full composition, in line with the global appointments model.
Who will oversee RICS standards and regulation?
We have begun the search for a replacement chair and board members on an interim basis and look forward to working with them to drive forward RICS’ transformation programme.
All regulatory activities remain in full operation and there is no break in the continuity of regulatory functions.
The SRB remains responsible for overseeing education and qualification, professional standards and regulatory policy, regulation and assurance, dispute resolution and the regulatory tribunal service.
What does the standards and regulation board oversee?
The SRB has the ability to call for new standards, as well as regulation of these standards, and will remain responsible for setting out the criteria by which standards are identified, developed and adopted by RICS.
The development of technical standards will remain the responsibility of the expert staff teams collaborating with professionals from our membership and working with the new knowledge and practice committee. The knowledge and practice committee was created following a recommendation from the Bichard RICS Review and its remit will be to support the implementation and development of technical standards, providing input to the standards and regulation board.
The SRB remains responsible for overseeing education and qualification, professional standards and regulatory policy, regulation and assurance, dispute resolution and the regulatory tribunal service.
What does this say about RICS culture?
In his report, Lord Bichard recognised the efforts RICS has made to improve culture and support the membership (page 30, Clause 5.2). We remain committed to the recommendations in the Bichard RICS Review to ensure an open and transparent culture and we have made good progress on implementing them, as acknowledged by Lord Bichard himself last week (21 June 2023).
In his latest update Lord Bichard said: “[RICS] has worked at speed to effectively implement the recommendations from my report.”
Who is leading RICS?
Governing council, chaired by RICS President Ann Gray FRICS, is the highest governing body of RICS responsible for approving RICS strategy and vision, overseeing the effective delivery of the strategy as well as standards and regulation.
Governing council oversees both the RICS board, chaired by Martin Samworth FRICS, and the standards and regulation board. Governing council recently appointed Justin Young as chief executive officer for RICS and he will sit on the RICS board. He will work very closely with Chris Alder, the senior executive director for standards and regulation, on the careful alignment of standards and regulation, knowledge and practice and other directorates within the institution that support our membership. This will ensure governing council’s overarching strategy and vision is delivered in the public interest.
Will the resignations change anything operationally or outcomes of standards?
Our activities remain in full operation and there is no break in the continuity of regulatory functions.
The SRB remains responsible for overseeing education and qualification, professional standards and regulatory policy, regulation and assurance, dispute resolution and the regulatory tribunal service.
Is there a connection between Justin Young’s appointment as chief executive and these resignations?
There is no connection. Justin Young starts his new position on Wednesday, 5 July 2023.
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