Powers to impose Disciplinary and Regulatory Sanctions
The RICS Charter, Bye-Laws and Regulations delegate the authority for exercising the Disciplinary and Regulatory function of RICS to the Standards and Regulation Board (SRB). The SRB do this by creating Rules which set out the processes, procedures and decisions. The powers of RICS and the available Disciplinary and Regulatory Sanctions (called disciplinary penalties in the Bye-Laws) are set out in Bye-Law 5.4.
The RICS Regulatory Tribunal Rules (formerly the Disciplinary, Registration and Appeal Panel Rules), set out processes for disciplinary action and the decisions that can be made as well as the Disciplinary and Regulatory Sanctions available. For more information on the Corporate Governance at RICS (including the RICS Charter and Bye-Laws) please see here, or for the Rules see here.
One or more of the Types of Disciplinary and Regulatory Sanctions can be imposed (at the same time) following an enquiry or investigation and where a Regulated Member (either an individual Member or RICS-Regulated Firm) has been found to be liable to disciplinary action. The Regulatory Tribunal (sitting as a Disciplinary Panel) may also impose a temporary suspension or set of conditions (called an Interim Measure) pending the outcome of an investigation (see below for more information).
The Disciplinary and Regulatory Sanctions can be imposed by Regulatory Tribunal following a disciplinary hearing (before a Panel), or when considered on the papers (by a Single Member or Head of Regulation). The Head of Regulation can impose a Fixed Penalty Notice (caution and/or fine) or a Regulatory Compliance Order as set out in the Regulatory Tribunal Rules. The Disciplinary and Regulatory Sanctions are imposed in consideration of the RICS Sanctions Policy: Guidance to RICS Regulatory Tribunal Rules which can be viewed here.
Interim Measures pending Disciplinary and Regulatory investigation
In accordance with Bye-Law 5.4.4 and the Regulatory Tribunal Rules, an Interim Measure may be imposed temporarily on a Regulated Member’s registration. This is imposed prior to the conclusion of an investigation into the conduct of the Regulated Member and can initially be imposed for up to 18 months.
An Interim Measure is considered by the Regulatory Tribunal (sitting as a Disciplinary Panel), and can be imposed where it is:
- necessary for the protection of the public and/or
- otherwise in the public interest and/or
- in the interests of the Regulated Member
An Interim Measure has an immediate effect and can be suspension or conditions for up to 18 months (and in some circumstances extended beyond this time). An interim measure can be appealed or reviewed following a change in circumstances in accordance with the Regulatory Tribunal Rules.
Types of Disciplinary and Regulatory Sanctions
The following list are type of Disciplinary and Regulatory Sanctions which may be imposed following the investigation into the alleged breach/es of the Bye-Laws by a Regulated Member. In addition to this, there is the power to impose Costs in accordance with the Regulatory Tribunal Rules and RICS Sanctions Policy.
Caution – this is a warning against repeating the conduct or action which is found to have constituted the contravention of conduct expected of Regulated Members
Reprimand - this is another form of warning against repeating the conduct or action which is found to have constituted the contravention of Conduct expected of Regulated Members
Undertakings – one or more requirements imposed on Regulated Member in regards to future conduct
Fine – monetary penalty imposed in accordance with the RICS Sanctions Policy approved by SRB
Conditions – requiring Regulated Member to carry out or restrict activities within a set period which will be monitored by RICS
Expulsion (of individual Member) - removing the Regulated Member from RICS register
Removal (of a Firm’s registration) – removing the Regulated Firm from RICS register
Breach of imposed Disciplinary and Regulatory Sanctions
A breach of an imposed Disciplinary and Regulatory Sanction would be viewed very seriously and could result in further disciplinary action. A failure to pay the Fixed Penalty Fine will be an aggravating factor in any subsequent disciplinary case. However, it will also be relevant that a fine was paid should the case be subsequently considered by the Regulatory Tribunal.
In some cases, the Regulatory Tribunal Order or Regulatory Compliance Order (Consent Order) may include a requirement to undertake a specified action by a particular date. Where this is not complied with the condition/undertaking may include an automatic outcome for the Member or Firm such as expulsion or referral to the Regulatory Tribunal for further consideration. This is imposed in accordance with RICS Sanctions Policy: Guidance to RICS Regulatory Tribunal Rules which can be viewed here.
For more information on Regulatory Compliance Orders (or Consent Orders as they were known prior to 1 October 2019) please see here.
For more information on or Fixed Penalty Notices and requesting a Review of a Fixed Penalty Notice please see here.
For more information on the Regulatory Tribunal decisions please see here.