The EU Is the Framework for All Great Political Projects Going Forward and Valuation Is at the Core Michael MacBrien Adviser to TEGoVA; director general, European Property Federation; founding partner, MacBrien Cuper Isnard European Affairs TEGoVA Conference“European Valuation Standards in an Ever Closer Union” Brussels, 13 May 2016

“Great political projects”?... “Going forward?” … the EU? Along with Schengen, the Internal Market and the euro are the Union’s greatest achievements, but: The ‘Internal Market’ that has been showcased for thirty years is only really complete for labour, goods and capital, They ran out of steam for services which, when you consider their importance in the economy, is a big gap. The euro, like Schengen, was designed for fair weather and it has to be made storm-worthy. Europeans need to complete the Internal Market for Services and the Banking Union, and that’s a lot of work going forward, with major real estate and valuation implications.

TEGoVA is defined by European integration, through two ambitions: to absorb, reflect and project EU policy, and to make the EU’s valuation rules TEGoVA’s rise was entirely predicated on associating itself, its work and its products with the European Union at one and the same time: by absorbing, reflecting and projecting EU law impacting property and valuation; and by becoming the authoritative source of European valuation standards and qualifications so as to pre-empt any political motivation for the EU to legislate and regulate in this field. This has been the conscious strategic design of TEGoVA’s leadership and management for over a decade.

EVS, REV and TRV are the means to this ambition That is why every aspect of EVS is Euro-centric: standards that have completely eliminated any reference to anything ‘international’ and replaced them with own-concepts or definitions systematically grounded in EU law a section on EU Legislation and Property Valuation that is the finest existing compendium and analysis of EU law impacting property and valuation codes and technical papers grounded in EU law and practice And REV/TRV qualifications are designed to promote a European valuation elite.

And-it-worked! All of TEGoVA’s achievements have followed from this: Primacy of EVS The rise of REV and TRV The explosive increase of TEGoVA membership Success brings success, or more specifically, consolidation and innovation, and that is richly illustrated by this entire conference.

Launch of EVS 2016 EVS 2012 was the big bang in which TEGoVA’s standards were irrevocably pegged to EU law and policy. EVS 2016 takes this deeper and further in many different ways that will be revealed to you shortly.

Today’s conference also illustrates how TEGoVA has grown in its role of European authority on valuation standards and qualifications: The ECB’s Asset Quality Review Nothing is more critical to the health of the European economy than action to avoid future systemic banking failure. That’s why banking supervision has been transferred from the member states to the EU. A crucial move was the review by the ECB of the quality of the assets of European banks, with a key part on valuation of banks’ real estate collateral. And yet that part of the review was deeply flawed and TEGoVA stepped in to show the ECB what needs to be changed in the next exercise.

AQR: Nothing better illustrates what TEGoVA has become and how it has grown. No one asked us to do this. We did it on our own initiative because success brings responsibility and it is TEGoVA’s duty to show Europe’s political and banking authorities how the valuer’s job is properly and safely done. The drafting of EVS and the AQR re-write both also define TEGoVA in another way: They were done by small groups of hyper-competent and incredibly committed people who gave up a large chunk of their lives to achieve this. That’s TEGoVA in a nutshell: minimum bureaucracy and maximum commitment.

TEGoVA and the World Some of you may be inclined to view this focus on Europe as a form of retrenchement from a more universal ideal. You may be thinking “It’s a shame because valuation practice is a universal calling based on professional and economic realities that transcend borders and apply to all the world.” If you are thinking that, don’t worry. Today’s conference demonstrates that a solid European core is the grounding that Europeans need to go out into the world and shape universal valuation practice from a position of enlightened strength.

TEGoVA has a world view and it’s radically different from the view of those who would use the world as a means to dominance. TEGoVA rejects any top-down international valuation hierarchy. European valuation standards and qualifications pay homage to no one, are second to none, comply with no other norm. Our approach is respectful of other valuation cultures and traditions and that’s why …

… the essence of TEGoVA’s world approach is not hierarchy but mutual recognition … … so that we and our good friends from other lands can demonstrate that our standards and qualifications– though differing on certain points according to culture – are equivalent in rigour and excellence so that never again can competitors claim to clients that they use ‘international’ or ‘international- compliant’ standards or have international qualifications that are superior to ours. We take a big step today with the declaration of mutual recognition of Canadian and European standards and qualifications.

A common thread Wind and sand