The CBV profession is founded upon Practice Standards and a Code of Ethics, which are mandatory for CBV professional practice. Only a CBV has received intensive training in the Program of Studies to interpret CBV Practice Standards. Every CBV is then expected to meet annual requirements for Continuing Professional Development, keeping CBV knowledge and expertise always in step with new developments and changing business needs.
The behaviour demanded by these requirements distinguishes what it means to be a CBV and assures the integrity of CBVs as authorities in business valuation.
When issuing work products, CBVs and Students must comply with and adhere to all Practice Standards. They represent the minimum required standard of care for the CBV profession.
Practice Standards address the amount of work required, how an engagement is conducted, how conclusions are communicated, and the nature of file documentation to be maintained. Practice Standards exist for many types of work products including valuation engagements, conclusions on gains or losses in the context of litigation, and fairness opinions.
CBV Institute can take action for non-compliance. The Institute maintains a Complaints Process to review alleged breaches of the Practice Standards, Code of Ethics or By-laws. The Practice Inspection Program also maintains the quality of professional services by upholding the standard of professional practice expected of all CBVs.
Any work product subject to CBV Institute Practice Standards issued after January 1, 2018 may be selected for inspection. For more information, see Practice Inspection Program.
To assist CBVs in the exercise of professional judgement on valuation assignments, Practice Bulletins provide context and guidance on Practice Standards and the Code of Ethics. CBVs are also required to comply with Practice Bulletins.
Code of Ethics
CBVs and Students must comply with requirements specified in the Code of Ethics. This sets the minimum level of acceptable conduct for the CBV profession to require and safeguard:
- High quality professional services for the public
- Orderly and courteous professional conduct by CBVs and Students
Protecting the Profession
Being a Member of the CBV profession carries the highest level of responsibility to maintain the regard in which the Institute and its Members are held by fellow Members, other professionals and the public. The Code of Ethics is the benchmark to measure CBV professional behaviour or misconduct.
Protecting the Public
The Code of Ethics is an assurance the CBV profession will serve the public interest with a high standard of behaviour, honesty, prudence, competence, objectivity, truthfulness and impartiality.