Europe Embraces Recognised European Valuer Scheme | TEGoVA plans updated European Valuation Standards 2012
The European Union's current interest in real estate valuation and the harmonisation of valuation practice and standards has led to growing support for the 'Recognised European Valuer Scheme' launched by The European Group of Valuers' Associations (TEGoVA) in 2008. Since then 15 valuers' associations have subscribed and a critical mass of 500 Recognised Valuers from France, Germany, Poland, Russia and the United Kindom has been reached. REV certificates will also be awarded soon to valuers in Austria, Greece and Norway. REV certificates were awarded to 90 valuers at the recent TEGoVA General Assembly in Paris on 12th June.
Even before the global financial crisis, valuation clients had been expressing concerns about the difficulty in identifying reliable valuers with up to date knowledge and appropriate experience. The REV scheme addresses these concerns by affording recognition to appropriately qualified and experienced valuers able to prove an ongoing involvement in property valuation work and participation in a programme of lifelong learning. Recognised European Valuers must also abide by a code of ethics set by their TEGoVA member association.
The 64 delegates from 15 countries, attending the Paris Assembly also approved plans to revise the current European Valuation Standards. The 6th Edition published last year will be updated and a new edition launched in 2012. However a revised section on Assessment of Insurable Value is almost complete and will be published soon.
TEGoVA's EVS Editorial Board has also started work on a Code of Measuring Practice as well as guidance notes on environmental matters affecting the valuation profession, on the value apportionment between land and buildings and on corporate governance and ethics. In addition the Board is seeking to amend TEGoVAs educational requirements to ensure that the highest standards of professional competence in valuation are delivered by all member associations.
Allied to TEGoVA's work on setting and promoting European Valuation Standards, progress is also being made on a European Union funded project to prepare training modules and materials in connection with European Valuation Standards. The project is being managed by the UK's Institute of Revenues, Rating and Valuation (IRRV) in cooperation with TEGoVA and valuers associations from France, Lithuania, Poland and Romania. The training modules should be ready by the end of 2011. The significance of this project cannot be underestimated in terms of signalling the European Unions determination in forcing the pace in the harmonisation of valuation standards and practice across Europe, with a view to securing market transparency.
New EU directives touching on valuation mattes were also debated at the General Assembly. Of most interest were plans to reform of the financial markets. In particular it was noted that the proposed 'Alternative Investment Fund Managers Directive' aimed at controlling hedge funds, seeks to set rules for annual valuations of real estate investments held by the funds. The Directive will permit valuations to be carried out on an annual basis by either internal or external valuers subject to Chinese wall provisions in the case of the former.
The Services Directive also came under the spotlight with the TEGoVA Board tabling a paper setting out guidelines for Cross Border Property Valuation. It was agreed that in the first instance the guidelines would be issued as an information paper and possibly incorporated within EVS in the future.
Finally it was noted that a new Energy Performance of Buildings Directive was due imminently and that this would encourage valuers to give more attention to energy performance certificates in valuation reporting.