IVSC AGM 2023: A Gathering of Global Valuation Leaders

By: Jack Beckwith, ASA, CEA

The IVSC Annual General Meeting (AGM) convened in October at Maison de la Chimie in Paris, where 150 valuation leaders and experts from across the globe gathered for three days of productive discussions and networking.

During the three-day programme, the IVSC’s technical boards met to review feedback received during the recent consultation on proposed updates to the IVS. These discussions allowed them to reach consensus on many of the proposed changes, setting the stage for the anticipated release of an IVS update in January 2024.

Notably, the technical boards explored the possibility of revising the IVS publication schedule in two significant ways. Firstly, to extend the implementation period into 2024, granting Valuation Professional Organisations (VPOs) additional time to incorporate and adopt the revised standards. Secondly, considering a shift to a three-year update cycle from the current two-year framework. This approach is intended to balance the need to be responsive to market and practitioner requirements, with the practical implications of adopting the latest international standards.

The Membership and Standards Recognition Committee (MSRC) and the Europe Committee convened to further their mission of raising awareness and demand for IVS and high-quality valuation professionalism. This included initiatives to establish a network of VPOs and experts across Africa, and to foster university engagement in Europe and globally. The Europe Committee also allocated time on their agenda to consider the ongoing topic of ‘prudent value’, as outlines in the Basel III requirements.

The AGM featured in-depth discussions by the IVSC Advisory Forum Working Group and Advisory Forum of VPOs and other IVSC member organisations included three sessions with specific questions applicable to VPOs globally that were addressed in a round table format:

Session 1: Future of Valuation and the Valuation Profession included Johnny White, representing ASA and an IVS Sponsor, addressed these questions:

1. Impact of AI and Technology: Given the rapidly advancing technological landscape, how do you perceive the role of AI and other technologies in shaping the valuation process over the next decade?
2. ESG and Sustainability: ESG criteria are playing an ever-increasing role in business and investment decisions. How do you think this will influence valuation in the future?
3. Specialization Trend: As we see a move toward increased specialisation within the profession, what are the potential advantages and challenges this brings? Could this lead to a more fragmented valuation landscape?
4. Data Availability: With more and more data now available, how can valuers ensure they are utilising the most relevant and accurate data in their valuations? How has this affected the traditional methods of valuation?
5. Changing Role of Valuers: As these trends progress, what core skills and attributes do you believe will be essential for the next-generation valuer?
6. Client Expectations: As clients become more aware of these emerging trends, especially ESG, how have their expectations of valuation services evolved?
7. Training and Education: What changes are necessary in the current training and education regimen for valuers to prepare them for this evolving landscape?
8. Regulations and Standards: With all these changes, there’s a potential need for new regulations and standards. How can the industry proactively approach this to ensure that they remain relevant and effective?

Session 2: Growing Recognition for the Profession was led by IVS CEO Nick Talbot:

1. Global Recognition: (Nick Talbot) To what extent do you feel there’s a need for a more globally recognised valuation profession? How does this align with your organization’s views?
2. Benefits for VPOs (Ben Elder) What benefits or advantages do you anticipate for VPOs with the establishment of a more globally recognised valuation profession? Are there specific examples from your organization or market?
3. VPOs’ Position (Amelia Hodge) How eager or hesitant are VPOs, including your own organization, to champion or endorse this global recognition? What motivates this stance?
4. Challenges and Barriers: (Dave Bunton) In the journey towards global recognition, what do you see as the main barriers or challenges? Are there specific experiences or insights from your market or organization that highlight these obstacles?
5. How would a global recognised valuation professional body benefit international property companies? (Christian Luft)
   How would an International Property Business embrace a global Valuation Profession? What would be the challenges and impacts on business and its clients?

Session 3: How is ESG shaping the Valuation Landscape was moderated by Jack Beckwith, ASA’s Representative for the AFWG?

1. The ESG Evolution: How have you seen the significance of ESG principles shift within the valuation sector over the past decade? In what ways do you believe it’s still evolving?
2. Valuers and Adaptation: With ESG increasingly factoring into valuation practices, how are valuers adjusting their methodologies and approaches to address these concerns adequately?
3. Client Dynamics: How have client expectations regarding ESG and valuation changed in recent years? Are there specific ESG-related demands or questions clients are bringing forward more frequently now?
4. Regulatory Landscape: As ESG becomes more integrated into valuation practices, what changes in the regulatory environment are you anticipating? How might these changes impact the day-to-day work of a valuer?
5. Data Nuances: Given the critical importance of accurate and relevant data in valuation, how are organizations ensuring the quality and relevance of ESG data being used? Are there challenges specific to ESG data collection and application in valuations?
6. Standardization vs. Flexibility: As the valuation sector grapples with ESG integration, is there a need for more standardised ESG valuation guidelines? Or should the approach remain flexible to cater to the unique needs of different markets and clients?
7. Preparedness for ESG Shifts: With the evolving importance of ESG, are there areas within the valuation sector that you feel are still unprepared or resistant to this shift? What can be done to bring them onboard?
8. Long-Term Perspective: Looking ahead, how do you see the relationship between ESG and valuation evolving over the next 5-10 years? What should valuers and their organizations be doing now to prepare for the future landscape?

The key issues shared by all those attending is the continuous support of education in our profession and the recruitment of the next generation of valuers where the IVS serves as the framework for valuation bringing consistency, comparability and transparency to valuations of all assets and liabilities throughout the globe.

Jack Beckwith, ASA CEA, serves as ASA’s representative to the IVSC. He has performed and supervised valuations throughout the United States, Canada, Mexico, and Europe, as well as published articles for various valuation topics in Equipment Finance Advisor, the M&TS Journal, and the ASA Professional. In addition, Jack has been an instructor for ASA teaching Principle of Valuation courses. Honorariums include: ASA International Conferences Presenter and ELFA Annual Conventions Presenter. He can be reached at beckwith@eagi.com.