The RICS plans to launch a global consultation to develop an enhanced regulatory framework for valuation that it said will raise professional standards, improve confidence for clients and help secure the accurate valuations that underpin most economic activity.

If global valuation standards are approved, all members involved in the valuation of commercial and residential property and specialist areas such as rural property, plant and equipment, personal and business property along with mineral asset valuations will have their competence monitored on a continuing basis.

The RICS expects that the valuation framework will be mandatory for all RICS valuers who are subject to the RICS Red Book from April 2010.

It said this new framework will satisfy clients, and public authorities that the RICS is able to properly regulate its members in a 'testing environment'. The RICS also proposes to introduce an accreditation scheme for RICS valuers which will provide a recognisable ‘kitemark’ covering the method and practice of valuations and require re-accreditation every three years.

Since 2002, the RICS has been involved in an ongoing process that led to major changes in RICS’ regulatory regime and from 2007 RICS has been operating a “'better regulation' model under arms-length governance.

RICS members voted to approve an independent recommendation of Sir Bryan Carsberg to introduce a system of proactive monitoring to check compliance with the Red Book, which is mandatory for all RICS members and regulated firms.

The RICS said there is an even greater public demand for measures that ensure that markets and other stakeholders can have the highest level of confidence in the competence and probity of professionals working in key sectors of the economy.

RICS spokesman Mark Gerold, said: '“The value of property is the key component which underpins economic activity. It is vital that there is an effectively regulated gold standard for valuation across the globe which inspires public confidence in the profession. The economic and social importance of all property assets can not be underestimated especially towards wealth generation in a functioning economy.

'The current financial turmoil highlights the need for raising standards to ensure a stabilising foundation for future economic development.'