The FISAVal panel will now require both existing and new surveyors to meet the following criteria:
- Carry out all valuations by MRICS or FRICS surveyors.
- Carry out all valuation inspections in accordance with the RICS Red Book specification for mortgage valuations.
- Have 5 per cent of all FISA valuations audited at least quarterly.
- Keep records of all internal audits which should be available to FISA lenders.
- Put in place a corrective action plan where shortcomings are discovered.
- Provide any valuations files requested by a FISA lender with which a loan was placed.
- Return an annual certificate of compliance with these criteria.
- Maintain adequate professional indemnity insurance.
John Parker, chief executive of FISA, said: “Current market circumstances have shown the need for robust valuations and FISA believes that firms, by having to meet more stringent criteria to gain entry to the panel, will be able to provide FISA members with a more quality-driven process.
"We are also requesting firms meet a number of audit requirements and deliver ongoing scrutiny of valuations to ensure continued quality."
He continued: "With these changes FISA is also acknowledging the significant stake holding surveyors have in the secured loans industry. It is therefore our intention to have much more regular dialogue with the senior management of FISAVal members to discuss market issues and the operation of the panel."
