The recently appointed Financial Instruments Standards Board has published an Agenda Consultation, seeking feedback regarding the approach the Board should take, and the prioritisation of that work.

The valuation of financial instruments has been an important and often controversial topic among valuation professionals, investors, prudential and securities regulators and the wider financial services industry over recent years. Financial Instruments valuation practice has continued to evolve and develop, primarily at banks and other financial institutions and in the auditing profession.

It is clear, however, that there is no effective set of international valuation practice standards for financial instruments that has been generally adopted. This has resulted in both inconsistent and sometimes low-quality valuation practices and, in recent years, concerns have been expressed by financial regulators and others about the quality and consistency of financial instrument valuation practice. The IVSC would like to address that gap in effective valuation practice standards for financial instruments, and has created the Financial Instruments Board.

The IVSC has published this agenda consultation to obtain stakeholder feedback regarding the approach the newly established Financial Instruments Board should take, and the prioritisation of that work. The consultation process for this IVS Financial Instruments Agenda consultation is now open. Accordingly, the Board encourages participation within the 60-day consultation period ending 26 September 2019 from all individuals and organisations.

The IVSC is committed to a fully open and collaborative consultation process and all comments received as part of the consultation process will be published on the IVSC website.

The Agenda Consultation document includes a series of questions pertaining to current issues related to the valuation of Financial Instruments. The consultation document can be downloaded here.