Professional Ethics and Code of Conduct
Professional Ethics and Code of Conduct
Domain 2 tests the IVSL Code of Ethics and how you behave when commercial pressure meets professional judgement. Expect scenarios on conflicts, fees, confidentiality and holding out.
Fundamental principles
- Integrity: be straightforward and honest in all professional and business relationships.
- Objectivity: no bias, no conflict of interest, no undue influence from client, lender or borrower.
- Professional competence and due care: only accept work you are competent to do, and keep competence current through CPD.
- Confidentiality: client information is not disclosed without authority, except where required by law or a court.
- Professional behaviour: comply with the law and avoid conduct that discredits the Institute.
Independence in practice
Fees must never be contingent on the value reported. Declare any prior involvement with the asset, any personal interest, and any relationship with a party to the transaction. Where a conflict cannot be managed, decline or withdraw.
Worked example
A borrower asks you, on a bank panel valuation, to reach at least LKR 25,000,000 and offers LKR 50,000 if you do. Accepting breaches the Code on two counts: a contingent fee and loss of objectivity. Correct handling: refuse the fee arrangement, record the request in the file, value on evidence, and report the approach to the lender if pressure continues.
Traps
- Agreeing a "success fee" or a fee scaled to the value reported.
- Valuing property owned by you, a relative or a business associate without disclosure.
- Discussing one client's file with another.
- Describing yourself as a Registered Valuer when not registered under the Act.