CODE OF CONDUCT FOR REGISTERED VALUERS: KEY PROVISIONS

In India, the Code of Conduct for Registered Valuers plays a pivotal role in regulating the conduct and professionalism of individuals engaged in valuation activities. Enforced by the Insolvency and Bankruptcy Board of India (IBBI), this code ensures integrity, transparency, and ethical behavior within the valuation profession. Here are the key provisions of this significant regulatory framework:

1. Integrity and Objectivity:

• Valuers must maintain the highest standards of integrity and objectivity in their valuation processes.
• They should refrain from any action that could compromise their impartiality or independence.

2. Competence and Professionalism:

• Valuers are required to possess adequate knowledge, skills, and experience to perform their duties competently.
• Continuous professional development is encouraged to stay updated with evolving valuation methodologies and regulatory changes.

3. Confidentiality:

• Valuers must maintain strict confidentiality regarding client information and valuation outcomes.
• Disclosure of confidential information is strictly prohibited unless legally required or permitted by the client.

4. Compliance with Laws and Regulations:

• Valuers must adhere to all relevant laws, regulations, and professional standards governing valuation practices.
• They should stay informed about any changes in legislation or regulations affecting their work.

5. Conflict of Interest:

• Valuers should avoid situations where their personal or financial interests conflict with their professional obligations.
• Full disclosure of any potential conflicts of interest is mandatory, and appropriate measures must be taken to mitigate them.

6. Professional Independence:

• Valuers must maintain independence from the influence of any party with an interest in the outcome of the valuation.
• Any factors that could compromise independence, such as relationships with clients or stakeholders, should be disclosed and managed appropriately.

7. Fairness and Transparency:

• Valuation processes should be conducted with fairness, transparency, and impartiality.
• Valuers must provide clear and accurate explanations of their methodologies, assumptions, and conclusions.

8. Reporting and Documentation:

• Valuers are required to maintain thorough documentation of their valuation process, including data sources, methodologies used, and rationale for conclusions.
• Reports should be clear, concise, and compliant with regulatory requirements.

9. Professional Conduct and Discipline:

• Valuers should uphold professional conduct at all times and avoid any behavior that could damage the reputation of the profession.
• Violations of the Code of Conduct may result in disciplinary action by the regulatory authorities.

10. Continuing Professional Development:

• Valuers are encouraged to engage in continuous learning and professional development activities to enhance their skills and knowledge.
• Participation in training programs, seminars, and workshops relevant to valuation is recommended.

The Code of Conduct for Registered Valuers serves as a cornerstone for maintaining trust and confidence in the valuation profession. By adhering to these key provisions, valuers contribute to the integrity and stability of the financial and business environment in India.