RICS has around 16,000 members globally who are registered valuers and when they register, they agree to be reviewed by our Profession Support and Assurance teams. This article is by way of a reminder that being regulated by RICS places obligations on individuals and firms, and that we will ensure valuers comply with these.
If carrying out valuation work in one of the countries where registration is mandatory, chartered or associate members must join the RICS Valuer Registration Scheme (VRS), unless all the valuation work they do is listed in the exceptions in section PS 2, paragraph 5 of RICS Valuation – Global Standards (Red Book Global Standards).
The VRS aims to ensure high standards in property valuation practices by providing a consistent, accountable and transparent framework for valuers.
A key part of the scheme is the enhanced professional assurance to which its members are subject. VRS fosters public trust and confidence in valuations by ensuring that registered valuers meet stringent professional and ethical standards.
As VRS members, valuers may periodically be selected for a review to ensure compliance with relevant professional standards.
The reviewer, who will themselves be an RICS member and an experienced valuer, will check that the valuer has robust processes and procedures in place to ensure they comply with all stated mandatory professional standards and follow best practice guidelines.
Reviewers will have encountered a wide range of valuation scenarios during their careers, which provides them with practical knowledge to offer insightful and applicable guidance.
In addition, they undergo rigorous training to ensure they have a deep understanding of valuation principles and practices and are well-versed in Red Book Global Standards, which ensures that their advice and feedback are aligned with the highest industry standards.
Subsequently, the reviewer will provide verbal feedback and a written report tailored to the valuer's particular work, based on a sample of their valuation files. Together, the feedback and report will highlight any risks or areas for improvement.
For more detailed information on regulatory reviews, please refer to the RICS Profession Support and Assurance guide.
By following this guide, valuers can ensure a smooth and efficient review process, demonstrating their commitment to maintaining the highest standards of professional practice.
Almost all valuers who have been subject to a regulatory review have found the experience helpful, supportive and beneficial to their business, as the advice provided was bespoke to their work and circumstances.
For example, speaking about the review process, Kenneth Ma MRICS said that it was 'incredibly enlightening in terms of identifying areas where I could refine my valuation practices', while João Fonseca MRICS commented that regulatory reviews 'should not be seen as a form of supervision and punishment of expert assessors. On the contrary, they are a help for expert appraisers and a guarantee for their clients.'
However, the reviewers recognise that more critical feedback can sometimes be difficult for valuers to hear.
Criticism can trigger feelings of frustration, disappointment or defensiveness; but it is important to remember that the reviewers provide this feedback objectively and constructively, with the intention of helping valuers become compliant with the requirements of Red Book Global Standards.
This will help protect them against future criticism of their valuation work, including accusations of negligence. It will also ensure clients receive a high-quality, professional service and a valuation that is fit for purpose.
While it can be challenging if valuers receive difficult feedback from a regulatory review, it is also a valuable opportunity for growth and improvement. By considering the following points, valuers can turn it into a learning opportunity – and an experience that will benefit themselves and their clients.
The bespoke feedback provided from regulatory reviews is beneficial to valuers for several other reasons.
Regulatory reviews by RICS therefore offer valuers opportunities for professional development, enhancing their credibility and reputation, mitigating risks, instilling client confidence, encouraging collaboration and ensuring they comply with standards and regulations.
By approaching difficult feedback as a learning opportunity and taking proactive measures to address it, valuers can use it to enable professional growth for the benefit of themselves and their business.
'Regulatory reviews offer valuers opportunities for professional development, enhancing their credibility and reputation'
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