Regulation of Valuation Practice

A: As noted, the development of a VCO role to specifically cover valuation process and conduct in RICS regulated firms was Recommendation 4 from the Valuation Review. It proposes policy changes to two current RICS regulated schemes, namely the Valuer Registration scheme and Firm Regulation scheme.

Since the Review in 2022, we have made significant strides in implementing the 13 recommendations it proposed, including the publication of updated guidelines, introduction of new regulatory assurance and revision of existing standards. Further information on this can be found here.

To ensure RICS regulatory schemes are enhanced and operated in an open and transparent manner, we held a public consultation on the VCO role implementation in Q4 2023. In line with the RICS Standard and Regulations Board (SRB) policy development process, the consultation ensures that any regulatory policy changes are appropriately assessed, and stakeholders have been engaged and given the opportunity to provide feedback on the proposals.

This feedback will guide the SRB in making informed decisions, with advice from the Valuation Assurance Committee (VAC), once established, whether the VCO role should be implemented and/or a valuation scheme for RICS regulated firms should be introduced.

A: At this stage, the consultation response outlines a proposed path forward, as well as key matters to be addressed before decisions can be made about whether the VCO role should be implemented and/or a valuation scheme for RICS regulated firms should be introduced.

We will consider all the elements of the proposals in detail with the VAC, once established, and present definitive, more detailed recommendations to the SRB in due course.

A: Some respondents in the public consultation raised concerns about the disproportionate burden on small businesses as well as the financial and operational burdens. As part of the RICS response, to address the concerns raised, we will work with the valuation firms (or valuation practice divisions at the firms) to ensure that, if introduced, the implementation of the VCO is proportionate across all practice sizes and, in particular, that an additional disproportionate burden is not placed on small businesses.

A: As recommended by the Valuation Review, RICS will establish the VAC. The Chair of the VAC was appointed on 13 August, with recruitment ongoing for members. We expect the VAC will be in place by the end of 2024. RICS will work with the VAC (once established), firm representatives and other key stakeholders to determine final proposals of the VCO role. The proposals will then be put forth to the SRB, and once the proposals have been adopted, the VAC will help implement them.