(This story was updated on 28 June with details of the SRB statement.)
The Royal Institution of Chartered Surveyors' Standards and Regulation Board resigned en masse, throwing into doubt the implementation of recommendations of a review into the governance, purpose and strategy of the global entity that sets and enforces standards for valuing, operating and developing real estate.
The unexpected departures come as the entity tries to move on from a turbulent period in its history that has seen major investigations into its financial conduct and its relevance to the property industry. All 10 of the board including chair Dame Janet Paraskeva, members Bruce Haswell, Leigh Miller, Richard Waterhouse and Dele Oyekanmi plus independents have handed in their notices.
The board sets the rules and reviews the performance of surveyors to maintain "appropriate protection for consumer and clients" as it investigates those who may not meet the standards it sets, and it oversees the independent tribunal that investigates such actions. RICS last week appointed a new CEO and it has been looking to increase its presence in North America.
It has been trying to move on from a turbulent few years by implementing the 18 recommendations of an inquiry into events that took place in 2018-19 following an audit of RICS's finances, as well as a comprehensive review of the purpose and relevance of the institution.
A signed statement from board members has been circulated that states: “The SRB was set up to regulate the profession in the public interest as an independent board. But we were treated from the outset by the leadership more as the enemy rather than as the regulator within RICS. It became increasingly difficult to do our job.”
The move comes as RICS is trying to increase its presence in the United States. While RICS might appear similar to the Appraisal Institute, the largest association of real estate appraisers in the United States, it's much more than that, RICS President Ann Gray said.
Gray, CEO and principal of Pasadena, California-based Gray Real Estate Advisors, said while the global entity has "plenty of appraisers in our membership," RICS is open to anyone who works in the property field. Most members work on the consulting side of the business, so owners and developers typically aren't a large part of its membership, she said.
"For instance, we have facility managers, quantity surveyors (cost controllers), planners, property condition assessors, rural and estate managers etc.," Gray said in an email. "So, when you say surveying, it's really measuring/accounting forcosts, value, size, highest and best use etc.," she said. "It is underpinned by a commonality of ethics," professional practice, standard methodologies and public interest.
Concern Over Standards
Standards is apparently one important issue of concern for the resigning board. The statement adds that a major factor had been a decision to transfer responsibility for standards from the board, a decision that "was a clear attempt to reduce the effectiveness and power of the independent regulator within RICS and hand power back to the representative side."
It is unclear if the decision is also linked to Clause 213 of the United Kingdom government's Levelling Up and Regeneration Bill, which is seeking explicit powers for the Secretary of State to review the work and performance of the real estate surveying industry's professional body.
Other critical and contentious work it oversees is the implementation of the recommendations in the Bichard Review of RICS, as well as guidance on property investment and setting surveyor rules of conduct, and providing technical guidance on buildings with cladding following the Grenfell Tower disaster in 2017 in which fire spread up the exterior of the building and 72 people died.
As for RICS, chair of the board Paraskeva first handed in her letter of resignation in the past few days. RICS confirmed that all members of the SRB then tendered their resignations, with the signed statement from the board members saying they had resigned in support. It said Dame Janet and board members have confirmed that they are able to work a short notice so a "smooth transition for their successors" is ensured.
The institution said in a statement: "RICS passionately believes in robust self-regulation in the public interest. We thank Dame Janet and her colleagues on the SRB for their service to RICS. Their contributions have been immensely valuable across numerous areas including the new Rules of Conduct, fire safety and valuation," adding that its activities remain in full operation.
It added in a statement: "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."
Founded in 1868, RICS has 134,000 paying members. A RICS qualification as a surveyor takes four years and is essential for work as a surveyor or valuer. Within this membership, an estimated 10,000 members belong to the so-called Windsor Group of large real estate advisers, which often pay for staff's subscriptions.
Tony Wilbert in Atlanta contributed to this story.