RICS Valuation – Global Standards
Red Book Global Standards, incorporating the IVSC International Valuation Standards
Issued November 2021, effective from 31 January 2022
This updated global edition of the RICS Valuation – Global Standards, or the RICS ‘Red Book Global Standards’ as it has become widely known, reflects, among other things, the recent changes made and incorporated into the International Valuation Standards (IVS), as well as continuing progress in the development of international standards for ethics and for measurement. Other refinements include, but are not limited to:
- articulating in more detail the need for clear, unambiguous and documented terms of engagement when members apply any exceptions to VPS 1-5 under PS 1 section 5, Exceptions
- definitions and additional commentary on matters relating to sustainability/resilience and environmental, social and governance (ESG) in the Glossary, VPS 2, VPS 3, VPGA 2, Secured lending and VPGA 8, Valuation of real property interests
- improving and/or clarifying some of the existing Red Book Global Standards text in the light of feedback, experience and also evolving needs.
Red Book Global Standards reflects the growing importance of successfully combining professional, technical and performance standards in order to deliver high quality valuation advice that meets the expectations and requirements of clients; of governments, regulatory bodies and other standard-setters; and of the public.
Transparency, consistency and the avoidance of conflicts of interest have never been more important. Nor has technical expertise and practical ability ever been more in demand, including the experience and insight necessary to interpret and review market dynamics and trends, and – in relation to real estate assets – to recognise the growing relevance of sustainability factors as a market influence. RICS-qualified valuers are at the forefront of the valuation profession and the Red Book Global Standards is their definitive implementation guide.
Changes in this updated edition continue to focus on enhancing its clarity and ease of use, with improved cross-references to other source documents. As before, the International Valuation Standards are cross-referenced throughout and reproduced in full in Part 6.
All members providing a written valuation are required to comply with the standards set out in this updated edition – in other words, unless stated otherwise, they are mandatory. The valuation practice guidance – applications (VPGAs) also included in this edition focus in greater detail on the practical application of the standards in specific contexts, whether for a particular valuation purpose or in relation to a particular asset type – they are advisory. The status of the component elements of the Red Book Global Standards is explained in more detail in the Introduction that follows and in the second section of the Glossary.