An update from John Martin, Chair of the Advisory Forum Working Group
As reported in the last eNews, the AFWG meeting in Chicago was a significant milestone in the ongoing development of greater engagement with key stakeholders. Engagement with our stakeholders is vital, as it will enable more cohesive development of the valuation profession.
There remain some differences of opinion but by engaging with TEGoVA, WAVO and UPAV, together with other key stakeholders, we are able to identify the stumbling blocks and work towards resolving these differences to secure global recognition of the valuation profession.
Standards are the cornerstone of all professional bodies and the recognition and adoption of a single set of international standards can form the platform for national bodies and their standard setters to develop a more cohesive profession.
There is also a need to have greater engagement with members of the IVSC Advisory Forum and we will be discussing in Bali a plan to develop a more workable model. This model will consider the formation of “cells” by discipline and geographical location to provide a point of contact to facilitate more regular communication and actions between all members of IVSC.
Training and education is another important agenda item, which we look forward to discussing.
We are also excited to be working closely with the recently formed Membership and Standards Recognition Board (MSRB) which will also be part of our discussions in Indonesia with the Chair Eric Teo who is attending.
Look forward to catching up with you in Indonesia.
Announcing our new Membership and Standards Recognition Board
The newly formed Membership and Standards Recognition Board met for the first time last week. A lot of the focus of this board is on the IVSC's objective to be seen and referred to as the standard setter for valuation with international valuation standards which are recognised and over time adopted by key stakeholders around the world.
The Membership & Standards Recognition Board is comprised of:
Eric Teo, IVAS, Singapore
Aart Hoordjik, NRVT, Netherlands
Allan Beatty, AIC, Canada
Eleanor Joy, CICBV, Canada
George Badescu, ANEVAR, Romania
Jeannette Koger, AICPA, US
Jiang Wei, CAS, China
Ken Creighton, RICS, Global
Phil Western, API, Australia
Shigeko Mizutani, JAREA, Japan
This board will play a key role in helping respond to requests to develop the profession in emerging markets, refining our membership requirements and approach, and leading market recognition and use of International Valuation Standards by all key stakeholders. This will help us increase the relevance of both International Valuation Standards and quality valuation professionals delivering against these.
An update from Steven Sherman on our IVS 2017 Consultation
We have been working on enhancing the IVS following the extensive input from the consultation process. Our transparent and systematic approach tallies with the recommendations from last year’s review of IVSC to materially update the IVS.
Our exposure drafts have received nearly a 100 comment letters – many of which come from organisations that represent thousands of valuers.
We met in early September to review these letters, and are now editing the exposure drafts following the discussions. We are reconvening at next week’s AGM to work further on these and will be producing a latest version of the edits we are making soon after the AGM. Following that we will review and make any further final edits needed.
We look forward to interacting with those of you who are observing in person or calling in to the public session via conference call. Please click here for more details and to register.
Exclusive discount for Financial Instrument Valuation Conference meeting
The Financial Instrument Valuation conference in New York is coming up on the 26 - 28 October.
If you’re planning to attend, you can receive a 30% discount by clicking here and applying this exclusive discount code: FKM63368IVSC1
Interested in how to prepare USPAP and IVS Valuations?
Tom Boyle, the Chief Appraiser for US Bank, and who wrote the Bridging Document, is giving an ASA seminar called Preparing Valuation Reports for USPAP & IVS: One Stone/Two Birds. Please click here to read more on the seminar.
Our latest Annual Report
We've recently published our 2015-2016 Annual Report.
The Report includes a review from our Chairman, Sir David Tweedie and updates on progress from each of our Boards.
Spotlight on Valuation Leaders – John Martin, the Australian Property Institute
IVSC's CEO, Nick Talbot, spoke to John Martin from the Australian Property Institute about his views on the valuation profession today and how it can gain more recognition
Nick Talbot: John, what’s your relationship with the valuation profession?
John Martin: I’ve been the chairman of the IVSC Advisory Forum since 2009 and I’m a Life Fellow of the API and a Fellow of RICS. I also held the post of state and national president of the API and has represented the Institute in international affairs for over 30 years.
NT: For those who haven’t got as far as the Asia Pacific region tell us a bit about the API.
JM: The API was founded in 1926 and is the leading membership organisation for property professionals in Australia. It is one of the members of the first international valuation standards body and has wholly adopted IVS 2013.
Right now, API is in the process of converting Guidance Notes to technical information papers to complement Australian law or regulations and the IVS.
NT: Sounds like you have a lot on your plate with different leadership roles in valuation, do you have time to work as a valuer too?
JM: I’m glad to say that I do. I created my own business – Australian Property Consultants - in 1988 as a boutique valuation and consultancy business. The core of the business is valuation but we also provide strategic advice on many real estate matters for public and private sector clients.
A key focus of my work is dispute resolution – so, determination or arbitration.
NT: Do you think the valuation profession gets the recognition it deserves?
JM: I think that until a consensus on the establishment and adoption of a single set of international standards is agreed, the recognition and respect the profession has been seeking for decades will not happen.
The key is for the standards to form the foundation on which national standard setters and VPOs can further develop best practice - regulators require standards to be applied consistently.
We’ve got an excellent opportunity right now to work together to achieve a strong profession. This involves the education and training of governments, regulators, users and practitioners and is of course an important part of the growth of the profession.
NT: What are the challenges to us using IVS and being globally recognised as a profession?
JM: There are still significant challenges, many of which have been issues for decades and are not confined to Australia, over the last 5 years there has been a shift towards greater cooperation between VPOs.
The challenges impact on tangible and intangible valuation disciplines, but some are discipline specific. For example, the RE discipline in Australia is confronting a number of issues including:
- Valuation is viewed as a “service of last resort or grudge service”
- The profession has undersold itself, we haven’t sold the “value proposition” to regulators or users
- Use of management companies as a clearing house for mortgage valuation work to panels has resulted in panel valuers being judged on how quick they can turn work around and how cheaply they can do it, rather than quality of analysis and detailed reasoning supporting opinions
- The corporatisation of valuation companies to the detriment of smaller practices is being driven by banks who are now on a path of eroding the profit margins of their reduced number of valuation suppliers – and there’s no sign of this stopping
- Technology is replacing valuers - this is impacting on all professions and is a major threat
- The art of valuation is somewhat unique as it requires the valuer to conduct a proper forensic examination of the market. Therefore it is one of the few professions that will always rely on the skill, judgement and experience of the valuer
- Many valuers involved in the residential sector don’t have the time or inclination to improve their skills to complete more complex valuation tasks
- An experience gap has evolved because of an aging population therefore the number of experienced valuers is reducing annually
Despite these challenges, we should not be doom and gloom. What the profession requires is a united global approach to ensure its future and I think the starting point has to be improving standards.
NT: It sounds like there are quite a few issues to resolve, how can IVSC help?
JM: As I say, standards are the cornerstone of all professional bodies. So the IVSC’s work in driving new standards and then the recognition and adoption of a single set of international standards is critical in forming the platform for national bodies and their standard setters to develop a more cohesive profession.
NT: What are your interests outside of valuation John?
JM: I do a lot of things in my spare time. I enjoy spending time with my family and I’ve just become a grandfather. I play the piano, I’m an avid Aussie rules fan, plays tennis and golf, and enjoy going for bike rides and to the gym.