PROSPECTUS
VALUATIONS – ANZ NOTE
Reproduced
with permission
1.0
Introduction
1.1
Purpose
The
purpose of this guidance note is to provide information, commentary,
opinion, advice and recommendations to Members undertaking valuations
of real property for inclusion in prospectuses.
1.2
Status of Guidance Notes
Guidance
notes are intended to embody recognised ‘good practice’ and
therefore may (although this should not be assumed) provide some
professional support if properly applied. While they are not
mandatory, it is likely that they will serve as a comparative measure
of the level of performance of a Member. They are an integral part of
‘Professional Practice’.
1.3
Scope of this Guidance Note
This
guidance note applies to Members providing valuation reports of real
property and related assets that are to be included in a prospectus.
This
guidance note does not apply where a valuation is undertaken for
purposes other than for prospectus purposes.
This
guidance note addresses general concepts and principles to be
complied with by valuers when preparing asset valuations for
inclusion in prospectuses.
1.4
International Valuation Standards
This
guidance note is intended to be consistent with the publication
“International Valuation Standards 2005” as issued by the
International Valuation Standards Committee.
However,
there may be departures from IVSC Standards to reflect Australian and
New Zealand law and practice.
2.0
Responsibilities
Members
providing reports for valuation or other purposes related to the
issuance of a prospectus should be aware of the responsibilities and
liabilities in providing such advice.
In
Australia Members are referred to the following;
• chapter
2,The Legal Liability of Valuers, particularly pages 48 to 53 of the
Second Edition of Valuers Liability by Lindsay Joyce and Keith Norris
(Southwood Press) or any updated edition, dealing with the
Corporations Law (now the Corporations Act) and reports or advice by
experts for prospectus purposes;
• practice
Note 43,Valuation Reports and Profit Forecasts, issued by ASIC 1993,
as updated;
• practice
Note 42, Independence of Experts Reports, also issued by ASIC;
• any
other relevant publications by ASIC or other authorities.
The
Second Edition of Valuers Liability contains the full text of
Practice Note 43 at Page 115.
2.1
Licencing
Valuers
providing valuations for use in prospectuses or Product Disclosure
Statements (PDS), should ensure they have all appropriate
accreditations and licences.
In
New Zealand Members are referred to the following;
• chapter
2,The Legal Liability of Valuers, particularly pages 48 to 53 of the
Second Edition of Valuers Liability by Lindsay Joyce and Keith Norris
(Southwood Press) or any updated edition;
• securities
Act 1978;
• securities
Regulations 1983;
• securities
Act (Contributory Mortgage) Regulations 1988; and
• any
other relevant publications by the New Zealand Securities Commission.
Any
other relevant publications by the new Zealand Securities Commission.
2