TEGo VA European Valuation Standards EVS and the

TEGo. VA European Valuation Standards (EVS) and the ISO/REV valuer certification and European recognition Silvia Cappelli Vice President ASSOVIB Board Member TEGo. VA Milan 26 th June 2014

WHO IS INFLUENCING THE VALUATION PROFESSION IN EUROPE

• • THE EUROPEAN GROUP OF VALUERS’ ASSOCIATIONS (TEGOVA) 59 Member Associations 32 Countries incl Italy (ASSOVIB, CCS, Is. IVI, CNGGL) Representing 70 000 valuers in European Valuation Standards Recognised European Valuer (REV) Minimum Education Requirements Journal of Recognised European Valuer REV Research (Valuation Parameters of Retail Properties)

ASSOVIB, founded in July 2010, is the association that brings together the main property valuation companies providing valuation services to banks in Italy. Ø 1500 valuers Ø more than 60% of the market of property valuation for banks ASSOVIB’s goal is to elevate the market’s transparency and the quality for the valuation of properties used as collateral against bank loans

MORTGAGE CREDIT DIRECTIVE (2014) Reliable Valuation Standards those developed by the International Valuation Standards Committee, the European Group of Valuers’ Associations or the Royal Institution of Chartered Surveyors…. ” Creditors are responsible Member States shall require creditors to ensure that those standards are used where they carry out a property valuation or to take reasonable steps to ensure that those standards are applied where a valuation is conducted by a third party. Where national authorities are responsible for regulating independent appraisers who carry out property valuations they shall ensure that they comply with the national rules that are in place. Professional Competence and Indipendence of the valuer Member States shall ensure that internal and external appraisers conducting property valuations are professionally competent and sufficiently independent from the credit underwriting process so that they can provide an impartial and objective valuation

ECB Asset Quality Review The European Central Bank Favours EVS Above All Other Valuation Standards “Real estate should be valued in line with European Standards EVS-2012 (Blue Book) and other international standards such as the Royal Institute of Chartered Surveyors (RICS) guidelines – where a conflict is seen EVS 2012 will apply

The ECB preference for EVS • EVS are solely concerned with the valuation of real estate, not with accounting, plant and machinery or intangibles. • EVS are more risk-sensitive, with special focus on EU banking directives (Capital Requirements, etc. ), and special guidance on market rating and risk-related criteria for valuations. • Only EVS provide a standard for Mortgage Lending Value and a detailed and comprehensive Application for Valuation for Lending Purposes.

Opinion on the compliance of the "Guidelines for property assessment as guarantees for credit exposure" with current European Valuation Standards (EVS 2012).

EVS Recognised European Valuer • Guaranteed minimum level of education, experience and competence. • Awarded by leading valuation associations in Europe • Enables cross-border real estate investors to identify valuers qualified to a recognisable European level. • Opportunity for both large and small valuation firms to tap into pan European market • Endorsed by European Property Federation • Recognised European Valuers display ‘REV’ after their name

RECOGNISED EUROPEAN VALUERS • Romania: 79 • Germany: • Greece: • France: • Italy: • Poland: • Ireland: • Russia: 1036 301 242 163 132 129 94 • Serbia: 36 • UK: 26 • Latvia: 16 • Norway: 15 • Spain: 13 • Austria: 13 • Netherlands: 5 2 300

THE MARK OF EXCELLENCE IN REAL ESTATE VALUATION IN ITALY

What’s still missing in Italy • Real compliance • Only valuers complying with standards • The indipendence of the valuer from the mortgage lending process guaranted by a rigourous process • The valuer’s competence is proved by the certification • Transactional prices available through online connections

THANK YOU! www. tegova. org @Tegova 1 @Cappelli. S