RICS moves up a gear

Members vote for new governance model

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A new governance model has received overwhelming approval from RICS members at its recent Annual General Meeting (7 July 2008). Recognising that RICS is accelerating its transition into a modern and responsive service organisation, over 90 percent of voters supported the proposal. A modern corporate governance structure will now be established combining the representative and democratic elements of a membership organisation with the business-like approach of the private sector.

The vote is the next step in the evolution of the Institution following the establishment of the arm's length, self regulatory regime, introduced in July 2007. As in the case of the regulatory system, the governance model will see the introduction of a principles-based framework, with clear lines of accountability, control, performance monitoring and assessment.

The mandate for the governance model follows a two-year trial where shadow boards worked alongside the existing constitutional structure. The information collected from these boards was used to inform a three-month consultation with members culminating in the final proposals.

Jim Allan, RICS Honorary Secretary comments:

“As in the case of our regulatory system, it is not what we do but how we do it that we need to change. Some of our processes and procedures were inconsistent with modern practices, particularly if you compared them with members’ own business operations. 

“I believe this positive vote is a huge step forward for RICS.  We want to set a new standard for the governance of professional bodies. The new framework will make us more fleet of foot, more efficient, and better able to manage a fast moving, international organisation. Whilst we are not a business but a members’ institution, we do believe in business-like principles.”

Louis Armstrong, RICS Chief Executive concludes:

“The real key to success of professional institutions is modern governance. It may sound boring but it is critical. Many Institutions are handicapped by their 19th century roots and archaic ways of managing. RICS needs to be able to develop further into a global, business-like organisation, building on its success. Now we can do so.”

Notes for editors

The proposals for the new governance model were presented to RICS members at its Annual General Meeting on 7 July. 10,254 votes were cast.

About RICS

RICS (Royal Institution of Chartered Surveyors) is the mark of property professionalism worldwide. It covers all aspects of property, construction and associated environmental issues. RICS has 86,000 chartered members (FRICS and MRICS) and 55,000 members in other categories of membership (TechRICS, trainees and students) globally. It represents, regulates and promotes the work of these property professionals throughout 146 countries. RICS is governed by a Royal Charter approved by Parliament which requires it to act in the public interest. It is also a professional regulatory body approved by Government (HM Treasury).

Further information

Claire Barratt
Press Officer
RICS Corporate Communications
T: +44 (0)20 7334 3736
cbarratt@rics.org
www.rics.org/press