While the Valuers Act 2003 deals principally with the registration of valuers, it also contains a number of requirements in relation to valuers’ business conduct. 

Under section 7 of the Act, a corporation is prohibited from advertising that a person employed by the corporation is entitled or prepared to value property or practise as a valuer unless the person is a registered valuer.

A corporation is also prohibited from providing a valuation of any property unless the valuation is signed by a director or employee of the corporation who is a registered valuer.

A registered valuer must produce a copy of his or her registration certificate on request of a client. 

If a valuer’s registration is suspended or cancelled, or has conditions imposed upon it, the valuer must notify their current clients in writing within 3 days.

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Rules of conduct are prescribed in the regulations under the Act to provide valuers with a guide to the professional and ethical standards expected by their clients. 

Some of the rules relate to:

• the exercise of skill, care and diligence in a valuer’s practice
• disclosure of confidential information
• conflicts of interest
• inducements
• false or misleading advertisements or communications.

A breach of the Rules of conduct is a ground for taking disciplinary action under Part 3 of the Act. 

The Rules of conduct are prescribed in Schedule 2 of the Valuers Regulation 2005. 

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The Commissioner for Fair Trading may take disciplinary action against registered valuers who:

• breach the Valuers Act 2003 or Valuers Regulation 2005, including the Rules of Conduct
• breach a condition of registration
• conduct business in an illegal, unfair or incompetent manner
• cease to be ‘fit and proper’ for the duties of registered valuer
• fail to comply with an undertaking made to, or a directive made by the Commissioner
• fail to pay a fine imposed by the Commissioner following disciplinary action.

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Where there are grounds for disciplinary action, the Commissioner can take the following actions:

• caution or reprimand – issue a written warning that an aspect of the person’s conduct is in breach of the Act and could be grounds for further disciplinary action
• undertakings – a direction requiring the person to agree to operate in a certain manner
• directive – an instruction to take a particular action within a specified time
• monetary penalty – impose a fine of no more than $11,000 for an individual, and $22,000 for a corporation
• impose a condition on the person’s registration as a valuer, for example, a condition that prevents the person from performing certain functions
• suspend registration for a period no longer than the unexpired term of the registration
• cancel the person’s registration as a valuer
• disqualification – declare a person as disqualified from holding a licence/certificate under the Act, either permanently or for a set period of time
• declare the person to be disqualified from registration
• public warnings – where urgent action is needed to protect consumers from significant loss or harm, the Commissioner may issue a public warning alerting consumers to the risks of dealing with a particular person.

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Any person can make a complaint to the Commissioner for Fair Trading about a breach of the legislation. 

The Office of Fair Trading can conduct investigations and take disciplinary action whether or not a complaint has been made, for example, where an investigator has identified a breach.

Penalty notices

The Office of Fair Trading can serve a penalty notice on a person if there is evidence that they have committed an offence under the Act which has been prescribed as a penalty notice offence.

If the person does not wish to have the matter determined by a court, they may pay the amount of the penalty within the time specified in the notice. Payment of the penalty is not regarded as an admission of liability and prevents further disciplinary action from being taken for the offence, but does not affect any civil claim arising from the matter.

The aim of the penalty notice scheme is to encourage changes in a valuer’s conduct to achieve compliance with the laws.  Circumstances where stronger disciplinary action would be more appropriate might include repeat or deliberate offences or behaviour that has caused serious detriment to consumers.

Show cause notices

The Commissioner can serve a ‘show cause notice’ on a person where there are grounds for taking disciplinary action against the person.

A show cause notice gives the person the opportunity to make a submission to the Commissioner demonstrating the reasons why he or she believes that the proposed disciplinary action should not be taken.  A person to whom a show cause notice has been issued is able to seek independent legal advice in preparing a submission.

The issue of a show cause notice is usually the first step taken in a procedure which may result in a registration being suspended or cancelled or a person being disqualified from being registered.

In situations of serious risk, the Commissioner may immediately suspend a person’s registration when issuing a show cause notice.

Show cause notices:

• are issued in writing
• give the person at least 14 days to respond
• specify the disciplinary action proposed to be taken, and
• describe the alleged conduct for which the action is proposed to be taken.

A person who receives a show cause notice can make oral or written submissions to the Commissioner.

Appeals against disciplinary decisions

A person against whom disciplinary action is taken by the Commissioner for Fair Trading may apply for a review of the decision.  To do so, a person is required to write to the Commissioner requesting that the decision be reviewed.

Where the person remains dissatisfied with the outcome of the review, an application may be made to the Administrative Decisions Tribunal for a review of the Commissioner’s decision on the disciplinary action.  

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