Following the exposure draft consultation period and rigorous reviews by a team of experts who comprehensively reviewed and considered all submissions the Board has approved the updated Code of Ethics (Code) and Rules of Professional Conduct (Rules).
The Board has approved the updated Code and Rules for release with an effective date of 31 March 2024. The Board permits and encourages early adoption of the Code and Rules.
The Code is a public statement of the principles, values and behaviours expected of API Members.
The Rules provide the framework for the professional conduct of Members and set the minimum requirements for Members providing professional services. They provide assistance and clarification to Members and those who interact with and engage the professional services of API Members.
The review of the Code included restructuring and updating the language to remove rules-based statements. This provided a closer alignment with the language and terminology contained within the Rules.
The overall purpose and objective of the Code has not changed. The Code aims to identify the minimum acceptable level of professional and ethical standards and conduct for API members when undertaking professional services.
The updated Code is available below:
The Rules have been restructured and rewritten to improve clarity and remove ambiguity.
The overall objective of the Rules remains the same, that is to identify the minimum standard of professional conduct expected of API Members undertaking professional services.
Updates include, but are not limited to:
- introducing the terms “valuation process” and “desktop process” to distinguish between a process involving a physical inspection of the asset by the Valuer (valuation) and a process which does not involve any form of physical inspection of the asset by the Valuer (desktop).
- the Rules further outline the minimum requirements for valuations and desktops including reporting and disclosure requirements and the use/verification of data and inputs as part of the process.
- additional rules were also included for certain API membership categories and certifications to make it clear which API Members are permitted to provide valuation advice.
- adding to and amending the “Definitions” to clearly articulate certain stated terms included within the Rules.
- the existing definition of “residential property” was relocated to the new rule for “Provisional Members with RPV”. The defined term “residential property” only applies to PMAPI with RPV.
- the definition of “residential property” was corrected to also include residential property held under ACT leasehold and perpetual crown lease.
The updated Rules are available at:
What do the updated Code and Rules mean for Members?
All API Members undertaking professional services are reminded that they must comply with the Code and Rules applicable to them.
Members must be fully conversant with all the Rules applicable to their membership category and certification(s) held. An allegation of a breach of the Code or Rules, after proper investigation and determination by the API Professional Conduct Committee, may be found to constitute professional misconduct by the Member.
The review and updating of the Code and Rules carefully considered the important requirement to remove existing ambiguity to enable the Professional Conduct Committee to properly assess any allegations of misconduct by a Member.
A significant benefit to APIV Scheme participants is the clear distinction between a “valuation process” and a “desktop process” which enables the APIV Scheme governing documents to be updated in the future to expand the Scheme to also apply to the desktop process, including the application of a capping mechanism to limit liability for Scheme participants.
A new Code of Ethics & Rules of Professional Conduct training module is being developed and due for release by the end of January 2024. All API Members will be required to complete this module with further details provided in the New Year.
Posted on December 13, 2023