When RICS was putting in place the components for the regulatory system that was introduced in June 2007, it was agreed, after listening to members’ views, that there should be a review mechanism to look at how the new system was working. The idea of the Scrutiny Panel was established.

What is the role of the Scrutiny Panel?

Put simply, the Scrutiny Panel is there to provide assurance to members and RICS that the regulatory system is doing what it set out to do. Namely, that it is:

• Adhering to the five principles of better regulation:  proportionality, accountability, consistency, transparency and targeted.
• Protecting the public.
• Providing a ‘light touch’ approach to regulation for members.

The Panel will scrutinise the effective working of all the regulatory and disciplinary processes.

The Panel consists of both RICS members and lay members, and is chaired by Philip Clarke (lay member).

Philip Clarke, Chairman of the Scrutiny Panel, said:

“I am delighted to be part of the Panel. It has an interesting role to play in ensuring that the regulatory system introduced by RICS a year ago is working as it should. I look forward to reporting back with our findings as our work progresses.”

So what will the Scrutiny Panel look at?

The Panel has agreed areas of work for the next year or so. Some of the areas it will look at include whether the:

• Consent orders are being used appropriately and that proportionate orders are made. Risk assessment tools used to assess firms’ annual returns are set at the correct level.
• Range of possible disciplinary outcomes is correct, given RICS’ aim of being a light touch (proportionate) but credible regulator.
• Fact that many of the complaints received each year by RICS are closed without any disciplinary outcome is appropriate.  Are appropriate decisions being taken?

Reporting structure

The Panel will report to RICS Regulatory Board and will advise and make recommendations based on its findings to that Board. However, the Panel will not examine individual disciplinary decisions.  Clear appeal routes already exist for all disciplinary decisions.

Stuart Carvell, FRICS and member of the Scrutiny Panel highlighted that:

 “The work of the Scrutiny Panel will go a long way to provide valuable analysis and evidence as to how the new regulatory system is working. We do not want to be in the position of only having anecdotal evidence as to how things are going. If the evidence indicates things are working well then fine, however, if it indicates things are not working well then we will say so and make recommendations as to how things can be improved.

"To enable us to do our job we need accurate information and firms’ completing their annual return is key to that. I know that a small number of firms have highlighted that they are concerned about the confidentiality of the information they provide. I would like to reassure them that RICS Regulation takes confidentiality and data protection requirements very seriously."