The Critical Review of the 2007 International Valuation Standards recommended that the Code of Conduct be removed from the standards. Accrediting and regulating the conduct of individual valuation professionals is not part of the standard setting function, and is the responsibility of others. The Standards Board accepted this recommendation in the IVS Improvements project.

Under its remit to develop the valuation professional globally the Professional Board commenced a project to develop an ethical code that would serve two functions. Firstly it would serve as a benchmark for the codes that Valuation Professional Organisations in membership of IVSC are required to have under their terms of membership. Secondly it should provide a model code capable of standing alone that organisations could adopt.

An Exposure Draft was published in July 2010 with a three month comment period. The comments received were mixed. Many considered that the objectives of the proposed code were unclear and some professional bodies considered that IVSC appeared to be trying to impose a detailed code when it did not have the remit to do so. Others felt that some aspects of the draft were either too prescriptive or that they did not identify specific examples of unacceptable conduct. Others referred to codes issued by various other organisations. A few of these referred to the IESBA Code published by IFAC as an example of a style of code that might usefully be referenced.

The Board took account of the comments and agreed that more should be done to make the purposes of the proposed code clear in the introduction. Many of the complaints on the first draft could be addressed if the code focussed on principles of conduct rather than listing specific actions that may or may not be acceptable. It also agreed to examine the IESBA Code.

A second Exposure Draft was published in May 2011 which reflected the comments received. In particular it was based on the IESBA approach of identifying Fundamental Principles of professional behaviour and then discussing examples of threats to compliance with these principles and steps that could be taken to mitigate or avoid those threats. IFAC was willing to assist and kindly consented to extracts from the IESBA Code being adapted for use in the proposed IVSC code.

The Comment letters received on the second exposure draft were generally positive and welcomed the changes that had been made.

After making some further changes to reflect the second round of comment letters, primarily to the presentation and to clarify the applicability of the new code, the Board approved the new Code of Ethical Principles for Professional Valuers in November 2011, and the Code was published in December 2011.

Associated Documents
Code of Ethical Principles for Professional Valuers - Dec 2011

Project Start: November 2009

First Exposure Draft: July 2010

Comment Period Closed: September 2010

Second Exposure Draft: May 2011

Comment Period Closed ; August 2011

Code approved by Board November 2011

Code Published: January 2012

A second Exposure Draft reflecting the Board's re-deliberations was published in May 2011, with a comment period until 31 August. See comments below on second exposure draft.

2nd Exposure Draft May 2011

Code of Ethical Principles for Professional Valuers. Comments on second Exposure Draft

28-06-2012 008 Duff & Phelps
28-06-2012 007 KPMG
06-06-2012 006 Appraisal Institute of Canada
06-06-2012 005 Consiglio Nazionale dei Dottori Commercialisti e degli Esperti Contabili (Italy)
06-06-2012 004 Canadian Institute of Chartered Business Valuators
06-06-2012 003 APSIS (Brazil)
06-06-2012 002 RICS
06-06-2012 001 Australian Property Institute

An Exposure Draft was published in July 2010 with a comment period until 30 September.

Exposure Draft - July 2010

See comment letters listed below on first Exposure Draft.

Comment letters on first Exposure Draft - IVS Code of Ethics

28-06-2012 027 Royal Institution of Chartered Surveyors
28-06-2012 026 European Mortgage Federation
28-06-2012 024 Canadian Institute of Chartered Business Valuators
28-06-2012 020 Ernst & Young
28-06-2012 019 PricewaterhouseCoopers
28-06-2012 017 Cole Alfaro
28-06-2012 015 KPMG
28-06-2012 013 Institute of Chartered Accountants in Australia
28-06-2012 010 Italian Permanent Committee on Business Valuation Guidelines
28-06-2012 008 Australian Property Institute
28-06-2012 007 Richard Almy
28-06-2012 006 Central Chamber of Commerce Finland
28-06-2012 004 Campbell Ferguson
06-06-2012 003 Taqyeem Dubai
06-06-2012 002 CRIF (Italy)
06-06-2012 001 Associazione Soceita di Valutazioni Immobilari per le Banche