RICS Sets Valuation Standards for Financial Market

HONG KONG, Sept. 18, 2012 /PRNewswire/ -- The Royal Institution of Chartered Surveyors (RICS), as a global standards body, sets to provide updated valuation standards and guidelines to help real estate professionals to meet a high standard of professional competence.

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To share the industry's knowledge and standards, RICS Asia hosted the 2nd RICS Asia Valuation Conference at Singapore in early September. This one-day conference, themed as "Valuation and Investments-An Essential Partnership" highlighted the intricate relationship between valuation and investment and provided the latest update on the International Valuation Standards (IVS) and RICS Red Book.

The conference began with an Opening Address by Dr Teo Ho Pin, Mayor of North West District, MP of Bukit Panjang Constituency and Government Parliamentary Committee Member, followed by key-note presentations and panel discussions. The great line-up of international and local speakers included the three keynote speakers: Justin Wood, South-East Asia Director of Economist Corporate Network, Singapore, Ong See-Lian, RICS Immediate Past President and Professor Yu Shi Ming, Head of Department of NUS Real Estate. A powerful group of panel speakers, comprising valuation and real estate experts, also spoke at the conference and provided in-depth insights on the use of valuation for cross-border asset management and its application to stabilise the financial environment.

RICS Asia Valuation Conference Organising Committee Chairman, David Faulkner, said: "Given the current economic volatility worldwide, consistent and reliable valuations of all types of assets are vital to both the world's largest and most powerful financial institutions and also private and boutique investors. RICS works towards establishing and maintaining the highest standards of professional conduct, and providing impartial and authoritative advice for the industry and public. This international conference will bring fresh perspectives and ideas to industry professionals".

Director of the RICS Valuation Professional Group, Ben Elder, said: "The recent updates on Red Book provide the best practice of reference for the valuation of properties, and will help the public understand the details of property valuation and guidelines. It enhances the transparency of the industry and helps contribute to the stable development of the property market indirectly. As for professional valuation, it shed light on the rental value of residential units, so that investors can have a better understanding of what they are investing in."

Besides having hosted the conference, RICS will also publish two sets of valuation's guidance notes for global applications in November, namely "valuation of business and business interests" and "valuation of intangible assets". The purpose of these guidance notes is to provide recommendations for members to conform to the 'best practice' and act with reasonable competence.

The two guidance notes will define the tangible (i.e. land, machinery and business) and intangible (i.e. trademarks, copyright and design) assets that require a proper valuation for business and business activity. The guidance notes identify the scope of work and terms for business valuation. They also provide guidelines for valuers to apply different valuation methodologies for different businesses in different sectors.

Editor's Note:

The International Valuation Standards contain globally accepted concepts and principles for the delivery of valuations on which investors rely. The latest edition of RICS Red Book has incorporated fully the new International Valuation Standards (IVS) and is effective from 30 March 2012.

About RICS & RICS Asia

RICS is the world's leading qualification when it comes to professional standards in land, property and construction.

In a world where more and more people, governments, banks and commercial organisations demand greater certainty of professional standards and ethics, attaining RICS status is the recognised mark of property professionalism.

Over 100,000 property professionals working in the major established and emerging economies of the world have already recognised the importance of securing RICS status by becoming members.

RICS is an independent professional body originally established in the UK by Royal Charter. Since 1868, RICS has been committed to setting and upholding the highest standards of excellence and integrity -- providing impartial, authoritative advice on key issues affecting businesses and society. RICS is a regulator of both its individual members and firms enabling it to maintain the highest standards and providing the basis for unparalleled client confidence in the sector.

The RICS Asia supports a network of over 11,000 individual professionals across the Asia Pacific region with an objective to help develop the property and construction markets in these countries, by introducing professional standards, best practice and international experience. It promotes RICS and its members as the natural advisors on all property matters. It also ensures that services and career development opportunities are provided to members.

The RICS Asia region covers national associations and local groups locating in Brunei, Malaysia, Singapore, Thailand, The People's Republic of China and the SAR Hong Kong. It also has members working across the region such as Bangladesh, Bhutan, Burma/Myanmar, Cambodia, Indonesia, Japan, Kiribati, Laos PDR, Macao, Mongolia, Nepal, North Korea, South Korea, Taiwan, The Maldives, The Philippines, Timor East and Vietnam. For more information, please visit: www.ricsasia.org.

Media enquiry, please contact:

RICS Asia Public Relations Representative

Ms Polly Tsang / Mr Andy Hung

T: +852-2372-0090

F: +852-2372-0490

M: +852-6108-5435 / +852-9254-9250

E: polly@creativegp.com / andy@creativegp.com

SOURCE　Royal Institution of Chartered Surveyors