1. IVSC restructuring and the new link "education - profession - public" A Presentation By Ion ANGHEL,Ph.D. Academy of Economic Studies – Bucharest IVSC Professional Board member

2. December 5, 2008, ERES Seminar, Bucharest Ion ANGHEL, The Bucharest Academy of Economic Studies OVERVIEW The actual context The role of real estate education The IVSC Restructuring The challenges Steps ahead

3. December 5, 2008, ERES Seminar, Bucharest Ion ANGHEL, The Bucharest Academy of Economic Studies 1. The actual context ? On December 5 (today) Professor Frederic Dalsace will be appointed to a new chair of Social Business at HEC the first FT European Business School 2008. His mission is to bring fresh thinking to the role of business in a world where unbridled profit seeking has brought financial instability and environmental concerns. There is no crisis today says Prof Dalsace. It is the end of an era and the beginning of a new era. We have to reinvent the world.

4. December 5, 2008, ERES Seminar, Bucharest Ion ANGHEL, The Bucharest Academy of Economic Studies 1. The actual context ? (2/3) Uncertain economics, downturn time Downturn brings good and bad news. In a downturn, studying for a qualification is a good investment. It is wonderful time to get back to basics, to try to understand the business behind the business models.

5. December 5, 2008, ERES Seminar, Bucharest Ion ANGHEL, The Bucharest Academy of Economic Studies 1. The actual context ? (3/3) The current climate might also persuade them to engage in some introspections: There is a responsibility of the education system ? Are we equipping future leaders and professionals with the right knowledge, tools and capabilities. Are we ready to prepare our students for the next period (a world of sustainability, a world of energy shortage). We have to be careful of what is going on but tremendous lie ahead.

6. December 5, 2008, ERES Seminar, Bucharest Ion ANGHEL, The Bucharest Academy of Economic Studies 2. The role of real estate education A functioning real estate system needs more than investors and money to flourish, it needs: real estate managers and real estate professionals. The goal of a real estate school is educating the leading workers (managers and professionals) in the real estate industry. A key problem now is to educate manager and professional class for the next 20-30 years.

7. December 5, 2008, ERES Seminar, Bucharest Ion ANGHEL, The Bucharest Academy of Economic Studies 2. The role of real estate education (appraisal profession) real estate valuation - three dimension chess game with: the public (including the industry), the valuers and the education system. The education level is important from minimum two prospectives: Minimum Education Requirements (MER) is important for certification and the public interest regarding the quality of the professional services The Body of Knowledge (BK) will be important for continuous education system (profession) and development of the profession (public interest and the industry).

8. December 5, 2008, ERES Seminar, Bucharest Ion ANGHEL, The Bucharest Academy of Economic Studies 3. IVSC Restructuring IVSC has now three main bodies : an independent global Board of Trustees, a Standards Board and a Professional Board appointed by the Trustees. www.ivsc.org The Professional Board main objective is to promote professional and educational standards for valuation;

9. December 5, 2008, ERES Seminar, Bucharest Ion ANGHEL, The Bucharest Academy of Economic Studies 3. IVSC Restructuring (2/2) The IVSC Professional Board objectives: foster and review the development of educational programmes consistent with IVSC objectives develop a multi discipline international body of Knowledge; develop a set of international valuation Best Practice promote education and training relative to international Valuation Standard

10. December 5, 2008, ERES Seminar, Bucharest Ion ANGHEL, The Bucharest Academy of Economic Studies 4. The challenges For IVSC To be able to achieve in a medium term majority of the objectives For universities and the education system To be able to achieve a consensus in term of Minimum Education Requirements (MER), To include ethical standards in the education area For public interest and industry recognition : enforcement standards Standards are essential to determining how well a person follows legal, professional and ethical norms.

11. December 5, 2008, ERES Seminar, Bucharest Ion ANGHEL, The Bucharest Academy of Economic Studies 4. The challenges (2/2) Real estate professionals should sell “competence” or “service proper” (knowledge and skills) and service “infrastructure” (technology and organization). “service proper” in valuation including “global standards” (professional + educational standards). “The professional appraisal community is threatened to be left behind – or even with extinction – as a dinosaur that has not evolved with the changing market and technology”. (K. Vandell, 2006).

12. December 5, 2008, ERES Seminar, Bucharest Ion ANGHEL, The Bucharest Academy of Economic Studies 5. Steps ahead 1. To inventorize property valuation programmes 2. To find a common minimum curricula accepted by the professional bodies and universities 3. To establish a body of knowledge for professionals accepted by Professional bodies/ institutes Universities Certification bodies

13. December 5, 2008, ERES Seminar, Bucharest Ion ANGHEL, The Bucharest Academy of Economic Studies is a common interest for universities, professional valuers and investors to develop global professional and educational standards and to enhance methodologies that will be able to solve new arriving problems in valuation area.

14. December 5, 2008, ERES Seminar, Bucharest Ion ANGHEL, The Bucharest Academy of Economic Studies International professional standards – light at the end of the tunnel?  Has valuers & universities seen the light?  Or is it still sitting on the fence?

15. December 5, 2008, ERES Seminar, Bucharest Ion ANGHEL, The Bucharest Academy of Economic Studies Thank you for your attention ! Ion ANGHEL Academy of Economic Studies – Bucharest IVSC Professional Board member ion.anghel@ase.ro