20 Jul 2017
Why did Lloyds Banking Group make the decision to adopt RICS standards? And what benefits do they bring to their business? We recently met up with David Hughes Head of Solutions, Commercial Real Estate at Lloyds to find out why our standards are so vital to him and the work he does. Read David’s thoughts below.
It’s difficult to imagine the real estate world without the RICS standards.
Standards address a broad range of issues; they bring consistency of approach across all the consultancy firms, ensures minimum quality standards are met, and most importantly they bring credibility and trustworthiness to our industry.
Engaging with clients
Standards make it easier for consultants to engage with their clients. They provide a consistent framework of engagement and give a client the comfort that the mandate will be undertaken in an honest, responsible and transparent manner.
They bring credibility to the real estate industry, provides consistency of approach amongst consultants, and clients can interact with their advisers knowing their interest is safeguarded.
Standards provide a foundation on which relationships are formed.
Commitment to the highest standards
At Lloyds Bank, we have fully embraced and adopted RICS standards including Red Book, International Property Measurement Standards and Conflicts of Interest. This approach demonstrates our commitment and promotion of only the very highest standards from our professional advisers.
The real estate industry is evolving at a fast pace and the use of the RICS standards have never been so important. They need to be at the forefront of how the industry is evolving. We are a responsible and transparent lender and we demonstrate that by adopting and promoting these standards.
These standards bring a consistent approach to our interaction with our panel advisers. By having and working to RICS guidance, we have the comfort that our advisers are objective, transparent and their advice is rigorous. Their compliance with professional, technical and performance standards means we can confidently outsource elements of our diligence process to external advisers knowing that they’re working to these same high standards.
Transparency and consistency
We firmly believe that having standards brings transparency, consistency and helps avoid conflicts of interest when we engage our advisers. We have strong internal credit metrics so when combined with the RICS standards, we can be sure our lending decisions are based on high quality due diligence.
The firms we engage recognise that adherence to the RICS standards are essential to maintaining the professionalism and reputation of their firm and that of the wider profession. All professionals in the industry have a moral obligation to adopt only the highest ethical professional standards, and adopting and working to these standards should be at the core of every firm
At Lloyds, adhering to these standards gives us and our clients assurance that our decision making process is based on sound technical and ethical advice, helping us be the best bank for customers.
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