CROSS-INDUSTRY GROUP ACTS TO REDUCE RISK OF COMMERCIAL VALUATIONS. PUBLISHED APRIL 2015
A new forum aims to reduce the risk of commercial property valuations.
The Cross-Industry Commercial Valuation Forum (CICVF) has been set up by the British Bankers Association (BBA), the Association of British Insurers (ABI), the Royal Institution of Chartered Surveyors (RICS) and others to agree steps to deliver a long term future for valuation services in commercial lending.
The move follows a series of high profile professional negligence claims against valuers. The new forum will discuss a number of initiatives, including a review of RICS Valuation Professional Standards, known as the ‘Red Book’.
The Forum will also will promote the sharing of risk monitoring measures between the forum’s members, monitor the Pre-Action Protocol on Professional Negligence Claims and collaborate on RICS PII minimum wording for lender due diligence.
Teresa Graham, Chair of the forum said: “We need to secure a sustainable future for the valuation profession in light of extremely challenging conditions. Valuation is a vital service in the market and I am delighted that lenders, insurers and valuers have shown the foresight and commitment to agree this recommended package of measures which, if implemented, will ensure a continued supply of valuation into the market and protect high standards of practice.”
The move has been welcomed by James Burgoyne, Director – Claims & Technical, Brunel Professional Risks. “There have been far too many cases in recent years where lenders have claimed that their surveyors had provided a negligent valuation after a borrower defaulted. This has had a significant impact on the cost and availability of professional indemnity insurance for valuation surveyors. Hopefully the new measures proposed by CICVF will mark a new chapter of cooperation and joint working between all parties.”
Details of the forum have been published by RICS.
