IVSC is pleased to announce the launch of a 12-week public consultation on the proposed changes to the International Valuation Standards (IVS).
The consultation, commencing on 28 April 2023, invites input from a diverse range of stakeholders, including industry professionals, regulators, investors, financial institutions, and other parties involved in the preparation, review, or reliance on valuations, to ensure comprehensive perspectives are considered in refining the IVS. The consultation, which closes on Friday 28 July 2023, seeks feedback aimed at enhancing the clarity, usefulness, and overall effectiveness of the IVS in promoting consistency and confidence in global valuations.
The proposed changes have been developed by the IVSC’s Standards Review Board and Technical Boards, which consist of leading valuation experts from around the world, working together to enhance the standards. These updates take into account various factors, such as ongoing changes in global markets and valuation practices, increasing use of technology and data sources, growing demand for clarity in valuation processes, and the need to address new types of assets and liabilities, including environmental, social, and governance (ESG) factors.
Key updates proposed in the Exposure Draft include:
- A more structured approach aligned with the valuation process.
- Additions or expansions to requirements for data and inputs, valuation models, quality controls, and documentation.
- Reorganisation of certain requirements and information to improve applicability, readability, and flexibility.
- Clarification of roles and responsibilities of parties involved in valuation, such as service organisations and specialists.
- Substantial revisions and enhancements to IVS 500 Financial Instruments.
During the consultation period, interested parties can submit comments through the IVSC’s online consultation platform (click below), or via email to IVSC Technical Director, Alexander Aronsohn ([email protected]). The IVSC will also host a series of webinars in May to discuss the proposed changes, which will be available on the IVSC website and publicised via IVSC eNews.
Following the consultation, the next edition of the IVS is expected to be published in January 2024, with an effective date of July 2024.
The IVSC encourages all interested parties to participate in the consultation process to help shape the future of the International Valuation Standards, thereby contributing to the stability of the global financial system and fostering market confidence.