What next for RICS after SRB quits?

The RICS faces fresh turmoil as a mass resignation from its standards and regulation board casts doubt on the institution’s efforts to implement review recommendations to reset its governance, purpose and strategy. The 10-strong board, chaired by Dame Janet Paraskeva, quit at the end of last week. In a joint statement seen by EG, the nine directors that worked with Paraskeva claimed the SRB was “treated from the outset by the leadership more as the enemy rather than as the regulator within the RICS”. “It became increasingly difficult to do our job,” they said. Paraskeva resigned on 23 June. The cohort said in the statement that they agreed unanimously to walk out in support of Paraskeva on the same day after the RICS showed its intent to remove her from the role. According to the statement, the SRB had agreed a regulatory framework for the institution that set out lines of responsibility and financing for both the SRB and the main RICS body. However, the directors claim the RICS wanted to break up that regulatory framework within months of the agreement, as well as remove staff and budget for the changes and isolate the SRB. “That decision was a clear attempt to reduce the effectiveness and power of the independent regulator within RICS and hand power back to the representative side,” said the joint statement. The SRB will continue in their roles until replacements are found. The RICS told EG the SRB remains a vital part of the RICS. The organisation maintains it needed to shift around 20 staff – which included roles that helped determine how the industry should operate around major issues such as cladding and valuations – out of the SRB’s remit and into the main body. It added that it had called Paraskeva into a meeting on 23 June to discuss “conduct and behaviour” concerns, 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”. In a letter sent to Paraskeva, RICS president Ann Gray specifically outlined concerns that Paraskeva had held a meeting with Rachel Maclean, minister for housing and planning, in which she claimed the SRB did not have the independence, support or resources necessary to do its job and was being sidelined. She is also alleged to have said reforms from Lord Michael Bichard’s review were not being implemented; and that Clause 221 in the Levelling-up Bill, which would give the secretary of state the power to instigate an independent review into RICS, was needed. In her resignation letter, Paraskeva denied the allegations, saying: “I have always acted in good faith in order to preserve and promote self-regulation for the institution and the profession and entirely refute the accusations made against me.” Gray told EG that the core of the disagreement was on how Bichard’s review recommendations should be implemented, and how different RICS divisions should work together, rather than matters of ethics. We are part way through a major transformation of the organisation. What happens in any major transformation is that there are always going to be some really uncomfortable moments. This is one of those Gray said: “We are part way through a major transformation of the organisation. What happens in any major transformation is that there are always going to be some really uncomfortable moments. This is one of those.” She added: “I think people are a little bit nervous that this might be a repeat of something that happened before but… from what members have been e-mailing me, they’re feeling the change. “They know the reorganisation is [about] turning the organisation inside out toward more members, serving more engagement, more communication. It’s really starting to be felt out in the regions. So I’m hoping our members will take it on faith that we’re continuing to move in that direction, and that this will not be an impediment.” The RICS’ independent nomination committee will now seek to make four interim appointments to the SRB – two board members and two independents – while it recruits for permanent replacements. It will appoint Gatenby Sanderson to form a candidate shortlist. It said there will not be any break in the continuity of regulatory functions. “I feel very confident this will turn out well for members,” said Gray. In the meantime, the organisation denied there was an “intentional campaign” to remove Paraskeva from her role. “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,” said the RICS. “While Dame Janet and SRB disagreed with this move, their views were considered by the [governing] council. But it is for the governing council to make the final decision.” The SRB, which is independently led, oversees professional standards and regulatory policy, regulation and assurance, dispute resolution, the regulatory tribunal service and education and qualification. See also: RICS answers questions on SRB resignations >> RICS resignations – read the letter that started it all >> Dame Janet Paraskeva’s resignation letter >> Strong words as RICS SRB quits – read the resignation letter in full >> To send feedback, e-mail pui-guan.man@eg.co.uk or tweet @PuiGuanM or @EGPropertyNews Photo © Jeff Blackler/Shutterstock