www'rics'org

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Diane Telford Director of Regulation
Operations RICS Regulation
www.rics.org
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RICS Regulation

• RICS (Royal Institution of Chartered Surveyors)
  is the world's leading qualification when it
  comes to professional standards in land, property
  and construction.
• For the first time in its history, from June 2007
  RICS began regulating firms in the UK regarding
  firm obligations. Firms were invited to sign up
  for regulation and over 9,500 firms in the UK are
  now regulated by RICS.

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Voluntary Basis

• Unlike UK based firms where registration was
  compulsory for firms with 50 or more member
  principals, registration for regulation in Hong
  Kong will be on a voluntary basis so firms have
  the choice to opt in to be regulated by RICS.

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Why Hong Kong?

• Legal system in Hong Kong similar to the UK
• Large numbers of members and firms concentrated
  in one place
• English widely spoken
• Firms interested in regulation
• Alternative redress widely accepted i.e. HKIAC.

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Enjoy the benefits of being regulated

• Being part of a world class regulatory regime
• Being the first area outside the UK to use the
  firms designation 'Regulated by RICS' on
  promotional material
• Reassuring clients that your firm follows the
  highest ethical standards
• Access to independent redress if things go wrong.

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Eligibility for registration

• A Firm with a Head Office in Hong Kong may apply
  to be regulated by RICS if it
• is providing a surveying service to the public in
  HK and
• has at least one Principal who is an RICS Member
  and
• agrees to observe and comply with RICS Rules of
  Conduct for Firms and
• agrees to act in accordance with the obligations
  set out in RICS Royal Charter and Bye-Laws.

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Firm rules

• Professional indemnity insurance
• Solvency
• Holding clients money
• Training
• Complaints
• Advertising

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Process

• Registration
• Annual return
• Further monitoring
• Advice and assistance
• Back up of an experienced team in serious
  disciplinary cases

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Disciplinary

• Fixed penalties
• Failure to produce annual return/pay fee
• Consent order
• Minor breaches
• Not published
• May be fine/costs
• Disciplinary panel
• Serious breaches
• Can fine an unlimited amount
• Can expel

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Two Cases Study for Surveying Professionals
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Case Study 1

• Claimant A was in dispute with a regulated firm
  because the firm failed to detect insect
  infestation during a survey that A had asked the
  firm to complete
• The Claimant requested 3084.25 in damages from
  the firm

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Case Study 1

• The Regulated Firm operated their Complaints
  Handling Procedure and accepted they were in the
  wrong for failing to make a recommendation to
  obtain a timber proofing estimate and offered to
  settle
• The Claimant remained dissatisfied and the matter
  was referred to the Regulated Firm's redress
  provider

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Case Study 1

• The Claimant and the Regulated Firm submitted
  their documents to the Arbitrator who was the
  nominated redress provider
• The Arbitrator found in the Claimant's favour and
  awarded full damages in the sum of 3084.25.

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Case Study 2

• Claimant B was in dispute with a Regulated Firm
  over the marketing of a property. B had asked the
  firm that a member of staff accompany all
  viewings
• The firm had not done this and B had withdrawn
  from the contract. In withdrawing, B had incurred
  a penalty fee

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Case Study 2

• B complained and the Regulated Firm operated
  their Complaints Handling Procedure
• The firm determined the fee was fair so B
  referred the complaint to the firm's nominated
  redress provider

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Case Study 2

• The Claimant and the Regulated Firm submitted
  their documents to the Arbitrator who was the
  nominated redress provider
• The Arbitrator, found in the firm's favour to
  impose a fee was correct as B's clause in
  relation to viewings was not in the contract and
  that the firm.

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Marketing Plan

• Guidance and information available at microsite
  www.ricsasia.org/regulation
• IT system developed to allow firms to register
  and complete an annual return
• Firms were invited to register by email and
  mailings
• Disciplinary process being developed in
  conjunction with Hong Kong International
  Arbitration Centre