The Royal Institution of Chartered Surveyors (RICS) is to review its valuation standards to make sure the services provided by RICS professionals remain relevant and trusted. The focus will be on valuation for financial reporting following concerns reported in The Times newspaper that some advisory firms could face conflicts of interest.
The Times said that surveyors could be conflicted if “they are appointed valuer of a fund manager or property company’s assets at the same time as charging them fees for other consultancy services.”
RICS’ review is expected to recommend a more frequent rotation of surveyors, to ensure that property owners do not retain the same valuers for extended periods. There is also likely to be requirement for valuers to report to non-executive audit committees, rather than company directors.
The review was to form part of RICS’ ‘2020 Futures Report’, which it said would ‘set out its agenda to keep the chartered surveying profession at the heart of the built and natural environment amidst unprecedented change.’
RICS global chief executive Sean Tompkins, said: “RICS plays an important role in leading the development of respected international standards and assuring the conduct of the profession through robust and independent regulation. In order to maintain public trust, we know that – just like the profession – our work to guide and regulate the profession must evolve too.”
The move has been cautiously welcomed by James Burgoyne of Brunel Professions. “Audit work has been under the spotlight as a result of high-profile corporate failures, including Carillion,” he said. “Surveyors perform a vital role in valuing property for investors and businesses. RICS is rightly taking steps to ensure that the public confidence is retained in the independence and quality of their work.”
Categorised in: Property PI News
This post was written by James Burgoyne