The trade bodies intend to future proof the profession by working on maximising consistency in standards of practice, supporting risk-based regulation and tools for managing risk and liability in valuation.
“RICS promotes and supports high standards in valuation delivery worldwide, and this public commitment by both lenders and valuers to work together to maintain standards and safeguard the future of the valuation industry for the public good is very welcome,” said Fiona Haggett, valuation director at RICS UK.”
Three key areas to be addressed have been highlighted in the agreement: the balance of risk and reward in valuation services, education on liability and risk for lenders and valuers, and clarification of the standards expected in the sector.
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Mike Conroy, executive director of corporate and commercial banking at the BBA, said: “We welcome this joint memorandum.
“Valuations are a crucial part of the lending processes and this agreement will help support consistent and transparent high standards that will ultimately benefit customers and enhance their confidence in this service.”
RICS will soon publish revised guidance on risk, liability and insurance in valuation to help the market to address the challenges that surfaced following the global financial crisis in 2008 and 2009.
As a result of the report ‘Balancing Risk and Reward: Recommendations for a Sustainable Valuation Profession in the UK’ by Dr Oonagh McDonald CBE, RICS has been working with the BBA and the wider industry to deliver improvements to the commercial secured lending sector.
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