Appointment Process of Independent Valuers Recommendations prepared by the Working Group on the Appointment Process of Independent Valuers convened by C K Lau were endorsed by the HKIS ExCom on 26 August. In essence, a new set of practical guide is to be issued to facilitate the application and the appointment process; the non-refundable fee to the HKIS is to be revised to $10,000 per application; a conditional appointment takes effect when the President signs the appointment letter; declaration on conflict of interest has to be made by parties at the outset; the application form to be updated; an indication that the fee for each assignment would unlikely be less than $75,000 and guidance on expectation of a reasoned award. The HKIS is arranging legal reviews on the practical guide. Meanwhile, the Working Group is formulating a media plan to promulgate the proposal and the practical guide which come into effect on 1 October 2010. Chinese translation of the practical guide will be followed afterwards. Exposure Draft - Proposed New International Valuation Standards Quite recently, the International Valuation Standards (IVS) Board has circulated the Draft for comment. The GPD has formed a Working Group convened by Joseph Ho to study the case. After due consideration, the Working Group has come up with comments on various aspects, e.g. competence of a firm; various valuation approaches; bases of value; scope of work; valuation reporting and valuation for lease accounting etc. A reply was sent to the IVS Board on 2 September. Members who wish to read our reply letter can visit the HKIS web-site ( www. hkis.org.hk) Apportioned Shares of Common Areas in Sale Brochures Members may be aware that one of the recommendations in the Report on 'Measures to Foster a Quality and Sustainable Built Environment' which was published in June 2010, is that apart from a breakdown of the components of 'saleable area', there should be a breakdown of the apportioned share of common area. The HKIS has formed a Working Group (convened by Dr Poon), to advise if it is technically possible for developers to provide such breakdown which is counted to the Gross Floor Area of a unit. Those who wish to comment on the case can write to the HKIS Admin Office directly. Update on Reciprocity Agreement with the CIREA Members may wish to note that the HKIS had on 14 September signed a Supplementary Agreement with the CIREA. The Supplementary Agreement enhances the procedures and requirements for future reciprocal recognition of membership. In essence, the second examination and related CPD will be held in the first quarter of 2011. We are discussing with the CIREA on the venue and formalities. Announcement on the detailed arrangement will soon be made. Newly launched Legal Advisory and Conveyancing Office Circular Memorandum No. 63 This relates to Lands Department Consent Scheme on measures to curb speculative activities in respect of first-hand uncompleted residential units. In essence, it covers (i) a 10% of the purchase price (previously 5%) will be forfeited for failure of completion of transaction and (ii) no nomination, sub-sale or transfer of the benefit of ASP by purchaser before completion of the sale and purchase and execution of the Assignment to the purchaser is permitted. CPD Event The CPD event on "The Implementation and Impact of New Measures for Sale of Uncompleted Residential Units in Hong Kong" was successfully held on 1 September. To curb the soaring property prices, the government has recently imposed progressive measures regulating the sale of uncompleted residential units. In order to have a better understanding on these new measures, a presentation on this subject was given by Mr Andrew Yu sharing his experiences on how to comply with the "9 principles and 12 measures" for the sale of uncompleted domestic units as well as the impacts, limitations and ambiguities of these measures. On 26 August, a CPD seminar on "Wo Shang Wai Residential cum Wetland Restoration Project - a Win-Win Case" was conducted by Mr Augustine Wong. He elaborated the procedures for Environmental Impact Assessment and its major concerns in obtaining Environmental Permit under the EIA Ordinance and also shared with us the importance of ecology and ornithology involved in this project. More than 160 members attended the seminar.