ASA + IVSC–Spotlighting the Effort for International Accepted Standards for the Valuation Profession

A special interview with ASA and IVSC CEO’s.

Editor’s Note: ASA’s role as sponsor of the International Valuation Standards Council (IVSC) plays a critical role in meeting the Society’s mission to foster public trust of our members and the appraisal profession through compliance with the highest levels of ethical and professional standards. To learn more about this relationship we sat down with CEO’s Johnnie White (ASA) and Nick Talbot (IVSC).

Q: Why is the role of an IVSC sponsor critical in today’s valuation profession?

Johnnie: Today more than ever, valuers are working with clients around the world. Fostering the public trust through compliance with the highest levels of ethical and professional standards is a growing concern. Supporting the efforts of the IVSC as a sponsor helps to address this.

Nick: Sponsor organisations play a pivotal role in IVSC’s mission of enhancing the appraisal industry. These organisations firmly believe that by elevating the standards of international appraisal practice, we can offer immense benefits to businesses, fortify financial markets, and safeguard public interest. At the heart of this belief is the understanding that internationally agreed standards foster transparency, which in turn catalyses the growth of robust economies through confidence given to local and international investors and creates a favourable environment for all users of appraisal information. As a not-for-profit with a global perspective, IVSC is passionately committed to elevating the global appraisal profession through the universally accepted standards of ‘IVS’. Through this, our vision is to enhance the stature and trust in the appraisal profession amongst its stakeholders. Our sponsors are indispensable in this journey. Their multifaceted contributions – from providing invaluable feedback during consultations, active participation on our standard-setting boards, to forming collaborative engagements with regulators and investors – are paramount. The respect and esteem the ASA and its members command globally can’t be overstated. In unity, with our expansive network of IVSC sponsors and members, we are charting a path to refine appraisal practice. ASA advocates IVS for members outside of the US, and in the US where there is also USPAP there is a bridging document on how to comply with USPAP and IVS which is particularly helpful for work being done by US appraisers for international clients based in the US or elsewhere.

Q: What changes around the world do you see impacting the valuation profession and international standards?

Johnnie: The one primary change that continues to play a vital role for valuers and International Valuation Standards is the increasing demand for confidence by our global financial system.

Nick: Today’s global landscape is increasingly complex, with intensifying geopolitical tensions in regions like Europe and the Middle East, growing inflationary and supply chain disruptions leading to macroeconomic fluctuations, and an escalating climate emergency. Beyond the immediate human repercussions, these challenges will undoubtedly ripple through many sectors, the appraisal profession being no exception.

A significant concern emanates from the investor community, which is eager for enhanced consistency and transparency in the standards that anchor the appraisals they undertake or commission globally. With many investors operating across borders, it’s paramount that their asset and liability valuations are comparable, quality and consistent, ensuring they’re comparing “apples with apples”. To address this, the IVSC, in collaboration with our sponsors including the ASA, is leading a programme of engagement with heads of valuation from some of the world’s most prominent sovereign wealth and pension funds, institutional investors, and private equity firms. Cumulatively, these entities command an astounding $20 trillion in assets under management, accentuating their significance in the broader financial landscape. We also have a quarterly Investment Banks forum in NYC with the top Investment Banks in the world. Our overarching aim is to encourage them to mandate globally accepted valuation standards, executed by well qualified appraisers who have solid, top-tier credentials. These professionals benefit from the continual support and professional development opportunities that organisations like the ASA provide. This initiative is one of many concrete steps the IVSC is taking, fortified by the insights and backing of our sponsors.

Navigating these changes, especially amidst heightened market volatility, demands a cohesive and collaborative approach. In these testing times, the foundational pillars of our profession – impartiality, integrity, ethics, and standards – become even more paramount. Consistent, trustworthy data and information are what our economies and financial systems perennially seek. Appraisers, with their adept skill sets and astute judgement, will undoubtedly be at the forefront. Alongside these global challenges, technological advances in areas like Artificial Intelligence and automation, emerging skills deficiencies, competition for the ‘next gen’ professionals, and the increasing significance of appraisal advice in strategic boardroom discussions will shape the future of our profession. Some investors may also start to behave differently once sustainability disclosures begin from 2024 onwards in line with International Sustainability Standards which are backed by IOSCO regulators, and will again be looking to valuers to help them understand the impact of these disclosures on the value of their assets, and what actions they may need to take to maximise value. Collaborative efforts will be crucial in understanding and addressing these evolving dynamics.

The one constant in all this is change, and in times of change investors look to qualified appraisers to give them confidence to help their decision making and understand the value of their assets.

Q: You recently spoke at the ASA International Conference – what did you share in your address?

Johnnie: ASA will be hosting a new IVS compliance virtual course for machinery & technical specialties valuers. The new ME218—MTS International Valuation Course will be held December 12-14, 2023 with class times geared towards international audiences. It has been designed to prepare machinery & technical specialties valuers to meet International Valuation Standards (IVS) compliance. Course registration is available online at https://bit.ly/3PsMvYl or by calling (800) 272-8258 or +1 703-478-2228.

Nick: It was a privilege to give the keynote at the ASA International Conference in New Orleans. I shared my personal journey of summitting Everest after barely surviving the two worst natural disasters on the mountain, and the pride of being the first individual with Cystic Fibrosis to achieve this feat having once been given a life expectancy of 16. Drawing parallels between this challenge and my tenure at the IVSC, a significant portion of the success is attributed to the relentless efforts happening behind the scenes and being unafraid to aim at what might seem to be overly ambitious targets. Yes occasionally you might not succeed but if you succeed at everything then you are probably not truly pushing yourself to your potential. At the IVSC, much of the success is down to ambition to change the world of appraisal and is thanks to the dedication of our volunteer boards and working groups, comprising over 100 experts hailing from more than 40 distinct countries. Many of these professionals, including a number of ASAs, epitomise professionalism, investing countless hours to ensure the standards we propagate are in line with global best practices. But beyond the hard work, it’s the relationships and collaborations that stand out. Our collective endeavours allow us to achieve far more than what we could individually. Appraisers play a pivotal role in shaping our world, and both IVSC and ASA will relentlessly champion their cause, underscoring their indispensable role in our interconnected global landscape.

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To learn more about ASA’s upcoming ME218—MTS International Valuation Course, visit ASA online. To learn more about the IVSC visit www.ivsc.org.