A major review published today [14 January] and commissioned by the Standards and Regulation Board (SRB) of the Royal Institution of Chartered Surveyors (RICS) is calling for stronger oversight and stricter rules governing property valuation.
The review, carried out by Peter Pereira Gray, chief executive of the Wellcome Trust’s Investment Division, found that property makes up an estimated 70% of global wealth and makes recommendations which apply to major UK and global assets such as shopping centres, offices and business parks.
The Board has committed to detailed discussion with the profession, with particular focus on three major changes:
- The introduction of a Valuation Compliance Officer role for RICS regulated firms undertaking valuation
- The creation of a dedicated Valuation Panel under the aegis of the SRB
- Further guidance on the culture within this sector and the behaviour expected of valuation professionals.
The Board will also consult with other industry regulators to scope any changes needed to its valuation standards and related regulatory framework.
Alongside publication of the review findings SRB has issued a public response which confirms its plans to establish a programme of work to implement the recommendations.
Commenting on the development, Dame Janet Paraskeva, the board’s chair, said: “The recommended changes for stronger oversight will underpin future stability and market confidence in this major asset class – much of which is funded through pensions and savings – and are therefore very much in the public interest.
“These changes are critical to ensure that RICS-regulated professionals and firms operating in this sector remain relevant and trusted. The Board welcomes and accepts all 13 recommendations of the Review.”
Peter added: “I commend the RICS Standards and Regulation Board for commissioning this objective and transparent review and for accepting all of the recommendations.
“It is my belief that implementing these recommendations as a package will lead to a greater and more enduring trust in the work of RICS Registered Valuers.
“The Review noted the substantial progress that RICS has made over the past 10 years and more to uphold standards, under independently-led regulation. Building upon that work, when implemented, the recommendations will provide stronger assurance with stricter rules governing property valuation. Ultimately, this will deliver the best possible outcomes for markets and the public.”