Professional standards: RICS Valuer Registration Scheme
| DOI | https://doi.org/10.1108/14635781111150420 |
| Date | 12 July 2011 |
| Published date | 12 July 2011 |
| Pages | 582-587 |
| Author | Nick French |
| Subject Matter | Property management & built environment |
PRACTICE BRIEFING
Professional standards: RICS
Valuer Registration Scheme
Nick French
Department of Real Estate & Construction, Oxford Brookes University,
Oxford, UK
Abstract
Purpose – In the last ten years, there has been much debate about the need for the licensing and
regulation of property valuers in Europe. The European Union has “hinted” at the need for a
pan-European licensing scheme in keeping with the model of licensing in the USA. This paper seeks to
discuss the option of regulation available and the role of the RICS in introducing a comprehensive
self-regulatory process.
Design/methodology/approach – This paper looks at the evolution of the “RICS Valuers
Registration Scheme” and the potential impact it will have on raising the standards of valuations not
just in the UK but worldwide.
Findings – The RICS Standards require the valuer to undertake valuations in an appropriate and
professional manner. The potential impact of the “RICS Valuers Registration Scheme” is that it will
educate the profession and thus increase overall standards. Although the system does have sanctions,
if required, the intent is not to penalise but to encourage and promote good practice.
Originality/value – This paper is a review of the “RICS Valuers Registration Scheme”. It outlines
the history of the development of the scheme and the potential impact that it will have on the quality of
valuations worldwide.
Keywords Valuationstandards, Professionalethics, RICS ValuerRegistration Scheme,Assets valuation
Paper type General review
The RICS Valuer Registration Scheme enables RICS members to demonstrate that they do act
professionally and with integrity all over the world (Eve Salomon, Chair of the RICS
Regulatory Board, February 2011).
Introduction
Property valuations are an integral part of the business community. As Barry
Gilbertson, in his paper with Duncan Preston, said “Property underpins a major
proportion of financial decisions in mature economies. Failure to ensure assets are
properly valued risks financial exposure for a wide range of stakeholders” (Gilbertson
and Preston, 2005). This has always been the case, yet at a time of financial crisis the
interrelationship between property values and the economy is brought in sharp focus.
This paper looks at the role of the Royal Institution of Chartered Surveyors (RICS) in
putting into place additional procedures and regulation to restore confidence in
valuations in the UK and worldwide.
The financial crash
It is widely accepted that the 2007 financial crash stemmed principally from the
proliferation of debt secured on property assets. The vast majority, albeit not all, of
The current issue and full text archive of this journal is available at
www.emeraldinsight.com/1463-578X.htm
JPIF
29,4/5
582
Journal of Property Investment &
Finance
Vol. 29 No. 4/5, 2011
pp. 582-587
qEmerald Group Publishing Limited
1463-578X
DOI 10.1108/14635781111150420
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