On October 18, 2022, the International Valuation Standards Council (IVSC), the global standard setter for valuations, and the International Organization of Securities Commissions (IOSCO) signed a Statement of Cooperation to advance valuation standards. Under the agreement, both organizations will work together to promote transparency and high quality in financial markets through the use of global valuation standards.
The IVSC is an independent private organization that seeks to promote investor confidence in the information provided by issuers. It works with leading audit firms, listed companies, and regulators worldwide to develop new or revise existing valuations standards for use by investors and other stakeholders. The IOSCO is a global forum for securities regulators, bringing together regulators from over 100 jurisdictions to coordinate, cooperate and communicate on regulatory issues. It also provides public policy advice concerning the development of good practices in the supervision of equity markets worldwide.
The statement aims to increase collaboration between IVSC and IOSCO members on valuation issues. The cooperation will focus on improving regulators’ understanding of the roles played by both parties; sharing best practices; developing joint initiatives to advance valuation standards; identifying issues requiring further analysis or research; and raising awareness about the importance of sound asset valuations within financial markets.
Alistar Darling, chairman of the IVSC board of trustees, said, “IVSC and IOSCO share the mutual goal of improving the financial information regulators, and market participants rely on. Our Statement of Cooperation with IOSCO highlights the importance of valuation in financial stability and will further advance international valuation standards and professionalism globally.”
The collaboration will help ensure that valuations meet the highest standards expected by users and regulators, support consistently high-quality corporate reporting, maintain market integrity, and promote investor protection. It will also ensure that firms can make informed decisions about what level of assurance is required based on their clients’ needs. This is a major wave in the financial market.