Robin appointed as Lay Member of RICS/IPA Fixed Charge Receivership Scheme

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“Robin appointed as Lay Member of RICS/IPA Fixed Charge Receivership Scheme.”

It is arguable that fixed charge receivership has been unregulated since the introduction of the Law of Property Act 1925. The result of this has been that little or no protection existed to protect the interests of lenders, creditors or other shareholders.

Canary Wharf London

Anybody could be appointed as a fixed charge receiver, operating totally outside the scope of the Insolvency Act 1986, leaving potential for defrauding lenders and other creditors.

An unprecedented step was taken when RICS and the Insolvency Practitioners Association, professional bodies representing two quite distinct disciplines, formed a joint scheme to accredit professionals who carry out fixed charge or Law of Property Act receivership work.

The scheme for the voluntary regulation of Fixed Charge Receivers proved to be a great success. Indications are that a number of leading banks will now only consider appointing those who are prepared to be regulated by their peers.

The scheme has been further enhanced by the recent addition of the ACCA.

Members of the Scheme are listed in the Directory of Registered Property Receivers which has been widely circulated within the industry to ensure that lenders now have access to competent and experienced professionals.

The larger the scheme becomes, the higher its profile – with the distinct possibility that those who were not prepared to be regulated will be effectively excluded from the bulk of the market.

How do I join the scheme?

To become an RICS Registered Fixed Charge Receiver you must have either of the following:

  • You must have been appointed on at least one fixed charge case and have a minimum of 75 hours experience on such work over the last three years
  • You must have worked on, but not taken in your own name, appointments for at least five cases over the preceding five years and have a minimum of 75 hours experience on such work over the last three years (such experience will have to be confirmed by the relevant appointee)
  • You already hold a full Insolvency Licence

All applicants will be required to pass and entrance examination consisting of two parts:

  1. Part A will be multiple choice questions to test your general Insolvency knowledge
  2. Part B is written questions to test specific LPA/Non Administrative Receivership Knowledge

Candidates are required to pass both A and B before attending a peer interview. Examinations take place every summer and are organised by IPA. Results are normally known by the August of the same year.

Once you become an RICS-registered Fixed Charge Receiver you will be required to complete an additional five hours CPD per annum relating to non-administrative receivership. You will also be subject to a monitoring visit at least once every three years run by ACCA.

Registration under the scheme last for a period of 12 months.  All members of the scheme receive a certificate each year they are a member of the scheme.

FCRS membership index

Members of the FCRS are listed in the Directory of Registered Property Receivers which has been widely circulated within the industry to ensure that lenders now have access to competent and experienced professionals.

The index lists those RICS members who have agreed to be regulated on their performance as Property Receivers by the FCRS Joint Registration Committee to ensure that lenders now have access to competent and experienced professionals.

Members of the Insolvency Practitioners Association and the Association of Chartered Certified Accountants who have joined the scheme are listed on their respective websites, www.ipa.uk.com (IPA) and www.accaglobal.com (ACCA).

Find a Registered Property Receiver

Use our member directory to find a Registered Property Receiver. Alternatively you can call the RICS Contact Centre on 0870 333 1600 who will be able to provide a list of members for you.

For more information

Fixed Charge Receivership Scheme (FCRS)
RICS Membership Operations
Surveyor Court
Coventry
CV4 8JE
t +44 (0) 20 7695 1795
f +44 (0) 20 7334 3811
e schemes@rics.org

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