On 9 October last, the Netherlands Authority for the Financial Markets (AFM), De Nederlandsche Bank (DNB), the property sector and accountants held a discussion about transparency and realistic valuations of property investments. This round table meeting focused on the recommendations of the Appraisers and Accountants Platform (PTA) for more transparency and uniform valuations of office and retail space.
The meeting was organised by AFM and DNB. When performing their supervision, AFM en DNB devote a great deal of attention to the property sector, including the correct valuation of property. They are of the opinion that the property market has to become more transparent, and that there are still sufficient opportunities to professionalise the valuations of property along broader lines.
The round table meetings were intended to make agreements with the market parties concerning the manner in which clearer and better substantiated valuations of property can be achieved. In addition to supervisors and accountants, various parties from the property sector were also represented at the meeting, including interest groups, appraisers and property developers.
Those present decided to further specify the recommendations. The feasibility of a central register of valuations and transactions will also be investigated. Aart Hordijk of the PTA: "The responses of those present were largely positive. They consider the recommendations an important step in realising an improvement in the quality of valuations."
The conclusions of the round table meeting are a step in the right direction towards making property valuations more transparent, concluded Ronald Gerritse, chairman of the AFM. "It is an encouraging sign, but the time has come to take action. An obscure market is something we can no longer afford in these times. The recommendations should therefore be elaborated further and more concretely in order to realise a code of conduct in the short term, which will be binding for the sector. We have to get to work now.'"
The AFM and DNB want to continue talking to the property sector concerning inter alia the further implementation of the recommendations. A third round table meeting has been planned for the start of 2013. The PTA is an initiative of the NBA, the Netherlands Institute of Chartered Accountants with the cooperation of VastgoedCert. They will publish the recommendations and offer them to the market parties for consultation.
The AFM is committed to promoting fair and transparent financial markets.
As an independent market conduct authority, we contribute to a sustainable financial system and prosperity in the Netherlands.