After a year of consultation, discussions and testing, the Royal Institution of Chartered Surveyors (RICS) launched the valuer registration scheme on 20 October 2010.
According to a press release from the RICS, the underlying objectives of the scheme are to:
- ensure the quality of the valuations themselves especially in terms of accuracy;
- raise the credibility of valuers; and
- provide clients and public authorities an identifiable designation for the best regulated and professionals in the field.
Through the scheme, the RICS will monitor valuers to ensure they are following Red Book standards. The Red Book applies to valuations carried out for purposes such as loan security, financial reporting, takeovers and mergers and purchase reports. Valuers will have to first register online and then submit data so the RICS can ensure they are complying with its valuation standards.
Although the scheme was launched on 20 October 2010, it will become mandatory in the UK from 30 April 2011.
We recommend that any party who regularly instructs valuation surveyors should begin to liaise with them now to determine when they will be joining the scheme. From 30 April 2011, we would also recommend that terms of business with any surveyor should be amended to require them to belong to the scheme.