SEC Calls for Urgent Standardisation of Estate Valuation
The Securities and Exchange Commission (SEC) has called for an urgent standardisation of the value of every piece of real estate in the capital market to prevent different values being presented for one property.
The Director General of SEC, Lamido Yugada gave the advice at a workshop organised in Abuja recently by the Association of Capital Market Valuers (ACMV), an arm of the Nigerian Institution of Estate Surveyors and Valuers, and SEC with the theme, ‘Assets Valuation as an Economic Tool for Decision Making in the Capital Market’.
The SEC Director General, who was represented by the Head, Investment Funds Supervision, Briggs Abel, also urged ACMV members “to ensure accurate, transparent and fair estimation of value at all times to boost confidence and trust of investors and stakeholders in the market, as well as an acceptable benchmark for measuring performance.”
He said estate valuers were often influenced by their principals “against the interest of the investor and the market, coupled with the widespread disparity in valuation of the same asset by different valuers.
This, he said, reflected badly on the integrity and outcome of valuers’ activities and the capital market as a whole. “The beauty of establishing this association out of the larger institution, is that it presents an opportunity to undertake specific professionalism. The grouping as an association of capital market valuers has the ability of setting relevant proffesional standards , codes of ethics and job prescription that will enhance the quality of its engagement and to which every member will be bound.
“The provision of this service, therefore, galvanises trust and confidence in the integrity of related transactions and is without doubt a direct positive consequence of the critical role of asset valuation for the proper working of the capital market specifically. The essence of valuation in the market cannot be overemphasized.
“Allow me to congratulate you on the establishment as a subsidiary. We at the commission believe that this is a step in the right direction; we are confident that it will enhance focus, professionalism, trust and confidence of stakeholders,” he said.
The Director General noted that the association may, in the future, stand eligible to be recognised as a selfregulatory organisation with attendant delegates powers and responsibilities.
He said, “This status, when attained, will enhance the quality of valuation prices and engender approved public perception and user-confidence in the association and its members. The commission will support the development of functions specific standards and codes to boost your activities as valuers.