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News & opinion

24 AUG 2018

RICS Regulatory Reviews: What they are & why we do them

RICS Valuer Registration (VR) and Firm Regulation, are proactive regulatory schemes which are currently, or will shortly become, mandatory in most of the Asia-Pacific region. We proactively monitor through RICS Regulatory Reviews, which all Registered Valuers and Regulated Firms are subject to.

Unique among credentialing bodies, we promote confidence in our professionals by actively monitoring compliance and providing feedback. We do this because it helps improve existing practices, mitigates risk, and enables high levels of compliance with RICS Standards, including RICS Valuation — Global Standards 2017 (the Red Book).

Meet the reviewers: Graham Buchan FRICS (1m 53s)

Red Book compliance

All valuations performed by RICS professionals or firms must fully comply with the Red Book, unless they are within an exception (Red Book, PS1, paras 1 and 5).

  • Valuers cannot exempt valuations from Red Book and VR by not using their RICS credentials or by defining valuations as "non-Red Book" because they use another standard.
  • Valuers can readily conform to both another standard and to Red Book at the same time. Where use of another standard is required by a client, the Red Book explains how a valuer can properly document the departure (Red Book, PS1, para 6).
  • Terms of Engagement must state that the valuation is subject to monitoring under RICS' conduct and disciplinary regulations (VPS1, para 3.1[q]).

About RICS Regulatory Reviews

All participants in VR and Firm Regulation are subject to RICS Regulatory Reviews. These reviews are a key tool for us to ensure consistent practice that compliant with RICS standards. Our regulatory reviewers conduct on-site and off-site regulatory reviews of the work conducted by RICS-registered valuers and regulated firms.

What they involve

RICS Regulatory Reviews include a review of:

  • valuation reports
  • valuation files
  • Complaints Handling Procedure
  • Conflict of Interest checks
  • internal processes

Why we do them

RICS Regulatory Reviews are a compliance tool designed to educate and assist RICS professionals and firms in improving their work and complying with RICS standards, including Red Book.

  • Immediately after an on-site review, the regulatory reviewer will provide verbal feedback regarding the strengths and weaknesses of the work reviewed.
  • The RICS professional or firm will subsequently receive a written report containing detailed guidance on strengths and areas where improvements could be implemented.
  • Rarely, and only if a serious case of non-compliance is found, a regulatory review will result in an investigation and, possibly, disciplinary action.

How firms & professionals are selected

RICS Regulatory Reviews are scheduled using a risk-based approach. Professionals and firms are selected for review based on information available from the market, responses to annual returns, areas of identified market concerns, how long it has been since they were previously reviewed, thematic risks and benchmarking considerations. While a review could be triggered by a specific complaint about a professional or firm, most are not.

What to expect

If you or your firm is selected for a regulatory review, you will get an email or call alerting you that you have been selected.


You will be contacted to schedule the visit. The visit will start with a pre-interview that will cover questions about general practices and policies. The reviewer will then review a number of valuation files looking specifically at compliance with the requirements of the Red Book. Reviewers use a worksheet that is based on each Red Book requirement. At the end of the visit, the reviewer will provide preliminary feedback regarding what they observed. You will receive a final written report about the review within a month.


The email will include a written questionnaire to be completed and instructions for uploading valuation files to RICS’ secure server. The review of those files will be completed by the reviewer and a final written report provided to you.

After the review

If there are areas for improvement identified in the written report, you will be requested to respond regarding plans to bring practices into compliance with RICS standards. The regulatory reviewer may schedule a follow-up review to check progress on reaching compliance with RICS standards.

A continual process

Our two regulatory reviewers in the Asia Pacific region will continue to contact RICS professionals and firms.

If you have any queries, please contact RICS Regulation