More than 100 valuation professionals gathered in Toronto on 28 February to discuss the potential impacts of having international valuation standards.
Organisations represented included the International Standards Valuation Council, Royal Institution of Chartered Surveyors, Appraisal Institute of Canada and Canadian Institute of Chartered Business Valuers, according to a news release issued by the RICS.
The IVSC supports uniformity and quality of valuations in real estate and all asset and liability categories. RICS is a global property professionals organisation, while AIC and CICBV are Canadian valuation bodies.
“Canada showed a united profession to the market both in Canada and internationally,” said Ken Creighton, director of professional standards for RICS. “The world will benefit from uniting under International Valuation Standards; Canada has taken a substantial move in leading the world in this direction.”
ISVC chairman David Tweedie said, “Valuation is at the core of economic stability. We may not get a second chance at this. Now is the time to move forward.”
Mr. Tweedie said the current fragmented condition of the valuation profession has been harmful to large countries such as the US. He said the Financial Stability Forum and G20 have identified poor valuation practice as a significant contributor to the 2008 financial crisis.
He called for moving toward international valuation standard recognition and acceptance.
“As standards converge, diversity decreases, resulting in greater consistency of valuations. This begins with the major standards organizations engaging in ongoing dialogue on convergence,” he said.
Andrew Dorchester, an RICS member and principal owner of real estate economics and litigation advisory firm The Dorchester Group, said, “People need to be able to make the best possible decisions with the best possible information. A higher level of valuation standards has the ability to distinguish real estate and financial services industries from any other in terms of safety and transparency for the end-user.”