The Expert Council on Appraisal Activities has commenced its work at the Fund
On October 17, 2023, the first working session of the Expert Council on Appraisal Activities, initiated by the SPFU, took place. The meeting was attended by representatives from the National Bank of Ukraine, the National Securities and Stock Market Commission, the Deposit Guarantee Fund for Individuals, representatives from the parliamentary body, the European group of TEGOVA valuation associations, as well as representatives from Ukrainian professional associations, self-regulatory organizations, the National Anti-Corruption Association, and other relevant public organizations.
The members of the Expert Council have identified priority tasks to focus on in the near future. These include:
· Advocating for the bill No. 7386, "On Amendments to the Law on Property Appraisal, Property Rights, and Professional Appraisal Activities in Ukraine."
· Improving the methodology for assessing damages and making necessary amendments to it.
· Developing educational programs for appraisers.
· Strengthening control over the activities of market participants with a single reporting database.
· Preventing abuses in the appraisal field and actively engaging in anti-corruption activities.
Working groups will be formed among the Expert Council members and representatives from the public to address these priority areas, and schedules for their meetings will be determined.
"In the first place, the market is waiting for changes to the Law on Property Appraisal, Property Rights, and Professional Appraisal Activities in Ukraine (bill 7386). This will allow us to 'reboot' approaches to professional training of appraisers and improve control over their professional activities. The issue of 'fractional valuation,' where land and buildings/structures are assessed separately, which increases the cost of these services for ordinary Ukrainians, will also be addressed. Additionally, modern digital tools will be introduced to simplify and expedite the work of appraisers," noted Denis Shugaliy, Chairman of the Expert Council and First Deputy Chairman of SPFU.
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Furthermore, the transition to international standards remains a crucial issue for the development of the appraisal market in Ukraine. These standards are developed and updated by the International Valuation Standards Council, an organization with representatives from 137 countries worldwide. Once implemented, Ukrainian appraisers will be able to communicate "in a common language" with the global community.
"This is one of our top priorities. The transition to international standards should build trust among international investors and donors in the evaluations conducted by Ukrainian experts on losses incurred during the war," stated Svitlana Bulgakova, Director of the Department of Property Appraisal, Property Rights, and Professional Appraisal Activities at SPFU.
During the Expert Council meeting, organizational matters were also discussed. A Deputy Chairman of the Expert Council was elected, with Andriy Kravets, a representative from the civil organization "Institute for Combating Corruption," assuming the role. Katerina Malysheva, Deputy Director of the Department of Property Appraisal, Property Rights, and Professional Appraisal Activities at SPFU, was selected as the Secretary of the Expert Council. Additionally, a decision was made to include five new members in the Expert Council.
It is planned that the Expert Council meetings will be held on a monthly basis.
Background: The profession of property appraisal in Ukraine originated in the 1990s and was closely associated with the privatization of state-owned assets. Therefore, the SPFU is an organization that played a key role in the early development of this profession. Today, the Fund shapes and implements state policies related to property appraisal and appraisal activities in Ukraine. This includes the development and adoption of all regulatory acts related to appraisal (national valuation standards, appraisal methodologies, procedures for conducting appraisals, etc.), maintaining state registers of appraisers and appraisal entities, managing a unified database of appraisal reports, and conducting reviews of appraisal reports. The Fund also provides education and training for appraisers.