06 Nov 2017
A formal Strategic Alliance (Alliance) has been agreed between the Australian Property Institute (API) and Royal Institution of Chartered Surveyors (RICS).
Following many months of negotiations and much speculation in the industry, a formal Strategic Alliance (Alliance) has been agreed between the Royal Institution of Chartered Surveyors (RICS) and the Australian Property Institute (API).
The Alliance brings together the individual strengths of RICS and API to create a world leading professional framework in Australia. RICS brings its global standards and assurance regimes and API its local knowledge and coverage.
The Alliance will lead to the streamlining of pathways, regulations and standards for property professionals across the country and brings together all property professionals in Australia under common professional standards. Over the next six to twelve months, the Alliance will also reduce compliance costs for professionals and create even greater certainty for the market in three key ways.
The new arrangements
Firstly, API has opened the APIV Limitation of Liability Scheme (APIV Scheme) to RICS qualified members. To achieve this, APIV has amended its constitution to better reflect the shared responsibilities of regulating the members under RICS’ global assurance regime, Valuer Registration (VR). VR will be adopted by API for all members in the APIV Scheme and will be mandatory from early 2018. These steps, delivered at no additional cost to APIV members, will significantly bolster regulation of the profession and provide the broader market with an even higher level of confidence, especially for clients and insurers.
Secondly, the Alliance will lead to the globally recognised RICS Red Book as the main industry valuation standard in Australia. RICS and API have commenced drafting a local chapter to align the API valuation standard to Red Book.
Thirdly, API will align its pathways to that of RICS to create one professional pathway. Once completed, API members and RICS professionals will be mutually recognised in Australia. This means there will be one process and one membership (either API or RICS) rather than two different processes that can potentially take years – a great financial saving for members and an even greater saving in compliance costs.
The mutual commitment
While acknowledging that it will take time to deliver on the Strategic Alliance, both RICS and the API are totally committed to making the structural changes to ensure the most efficient and effective delivery of services to the property profession in Australia. These changes are equally exciting and challenging but both organisations are game ready and looking forward to a productive and meaningful Alliance.
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