Report from our representative on CEPA matters
A meeting was held with the Development Bureau (DEVB) on 13 June 2011. HKIS CEPA Committee (GPD representative is Mr. K K Chiu) had raised the current status between CIREA and HKIS particularly the hurdles that HKIS members encountered when they wished to practice in the mainland. We had also expressed our concern on the difficulties for international valuation firms to open their business in the mainland.

On the other hand, CEPA Committee intends to visit the respective ministries and regulatory authorities in the latter part of this year. As GPD is discussing with the CIREA on diploma presentation/a seminar in Beijing in October (see below), CEPA Committee is considering joining the event at the same time.

CIREA Affairs
Following on the CIREA training session and assessment earlier this year; a Valuation Forum cum CIREA Diploma Presentation Ceremony in Beijing is tentatively scheduled on 21 Oct 2011. GPD has set up a Working Group (convened by Mr. Edward AU) to coordinate on the logistic arrangement for this forum and ceremony. Details will be announced later. Members who had passed the CIREA assessment through the second batch reciprocity arrangement are encouraged to join this forum and diploma presentation ceremony.

As members are aware, HKIS Membership Subscriptions were revised with effect from 1 April 2011. Correspondingly, CIREA would also adjust the fee for its HKIS members who obtained the CIREA qualification under the reciprocity arrangement. Members will receive the new demand notes soon.


IVSC in Hong Kong
International Valuation Standard Council (IVSC) will hold its Annual General Meeting on 5 November 2011 (Wednesday) in Hong Kong, immediately after meetings of the International Valuation Professional Board and International Valuation Standards Board in the two preceding days. HKIS will arrange a CPD event for IVSC Board members to introduce the updated International Valuation Standards. The seminar will be organized by GPD in the morning of 2 November. Details will be announced in due course.

Undivided Shares under the DMC
HKIS noted that there has been recent situation as brought up by surveyor members that the allocation of undivided shares and management shares under the Deed of Mutual Covenant of a building (DMC) is based on property value instead of the gross floor area. The "Allocation of undivided shares and management shares" under the Circular Memorandum No.56 Paragraph 6 (which is a government document guideline for preparation of Deed of Mutual Covenant of a building (DMC)) stipulates that "the allocation of undivided shares and management shares will be calculated by reference to the gross floor area of a unit in proportion to the gross floor area of the development as certified by the Authorized Person." However, the guideline also provides that "If any other basis is proposed for the allocation of undivided shares and management shares, full justification for the proposal must be produced" This recent case has brought up the issue on who should be the authority to certify property values for this purpose.

GPD Council is of the view that it would also be possible for the allocation of undivided shares and management shares to be based on property value but such property value shall be valued by qualified valuers. Therefore, we would suggest to the Government that if allocation of undivided shares is on the basis of property value, then such allocation should be certified by a Registered Professional Surveyor who is registered in the General Practice Division.

APC Reform
Afterdue consideration, the Board of Education, Divisional Councils and General Council have reviewed the existing APC procedures and formats. One of the proposed APC reforms intends to open a way for non-cognate degree holders working in the property industry, with appropriate training arrangement, to become full members of the HKIS.

On the GPD Final Assessment, GPD Working Group on APC reform (convened by Mr. Louie CHAN) has come up with a preliminary framework. In brief, the APC Final Assessment would be splited into two stages, namely, Part 1 which is written test (this will supersede the existing APC Written Test) and Part 2 is interview. Each candidate should have undergone and passed both Tests before becoming a full corporate member of the HKIS, GPD. Graduates can sit for the Part I written test in their first year training while the Part 2 interview shall be attended at the end of the two years APC training.

Primarily, Part 1 APC test for General Practice surveying consists of those key subjects relating to valuation, agency, estate management, land administration and resumption (subjects are still under review). The test papers are at degree level and on principles only (in local practice). Study guide may be provided in respect of these subjects. We hope to implement the proposed arrangement in 2013.

Members will be kept informed of the progress on the APC review. Views from members are welcome.