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SEC seeks estate valuation standardisation in capital market

By Chinedum Uwaegbulam
23 May 2022   |   4:08 am
Following widespread disparity in valuation, the Securities and Exchange Commission (SEC) has called for standardisation of estate valuation in the capital market.

Secretary, Association of Capital Market Valuers (ACMV), Ademola Adetola (left); ACMV Chairman, Chudi Ubosi and President, Nigerian Institution of Estate Surveyors and Valuers, Sir Emmanuel Wike during a workshop organised by ACMV and Securities and Exchange Commission (SEC) in Abuja.

Following widespread disparity in valuation, the Securities and Exchange Commission (SEC) has called for standardisation of estate valuation in the capital market.

The commission also charged estate surveyors and valuers under the aegis of the Association of Capital Market Valuers (ACMV) to ensure accurate, transparent and fair estimation of value at all times to boost confidence and trust of investors and stakeholders in the market, as well as an acceptable benchmark for measuring performance.

SEC Director General, Lamido Yugada, who was represented by Head Investment Funds Supervision, Briggs Abel, made this known at workshop themed: “Assets valuation as an economic tool for decision making in the capital market” organised by ACMV and SEC in Abuja.

He expressed concerns that valuers are in most cases influenced by the whims and caprices of their principal as against the interest of the investor and the market, coupled with the widespread disparity in valuation of same asset by different valuers.

These, according to him, impede on the integrity and outcome of valuers activities and the capital market as a whole. “The beauty of establishing this association is that it presents an opportunity to undertake specific professionalism.

“The grouping as the association of capital market valuers ability of setting relevant proffesional standards , codes of ethics and job prescription that will enhance the quality of its engagement and to which every member will be bound.

“The provision of this service, therefore, galvanise trust and confidence in the integrity of related transaction and is without doubt a direct positive consequences of the critical role of asset valuation for the proper working of the capital market and specifically. The essence valuation in the market cannot be overemphasised.

“Allow me to congratulate you on the establishment as a subsidiary. We, at the commission, believe that this is a step in the right direction, we are confident that it will enhance focus, professionalism, trust and confidence of stakeholders.

The DG noted that the association may, in the future, stand eligible to be recognised as a self regulatory organisation with attendant delegates powers and responsibilities.

“This status when attained enhance the quality of valuation prices and engender approved public perception and user confidence in the association and its members. The commission will supports in the development of functions specific standards and codes to boost your activities as valuers,”he added.

The Principal Partner, D’Lord, Maseli and Partners, David Maseli, said the role of the association is key in the capital market even as more products are coming into the market . “This association is important, there must be standards, control and a way we do things. Market valuation is key in the marketplace and the economy. If only the people in the authority understand what capital market can do, that’s where we have the long term funds to actually develop the economy,” he added.

He stated that the capital market is funded from pension fund assets amount N16 trillion, which is currently lying idle, adding that the funds could be used to finance critical infrastructure.

ACMV Chairman, Chudi Ubosi, said the association is aimed at filling the void in the capital market operations.
According to him, estate surveyors and valuers offer a wide range of services that add value to the market, which is unknown to many.

Ubosi said the essence of the workshop is to highlight services the association provides to the public and accelerate use of the services among people who want to go into the market and require asset valuations.

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