CEIV fades away with little fanfare

BVWire–UKIssue #51-1
June 20, 2023

The Certified in Entity and Intangible Valuations (CEIV) credential that launched in 2017 as a joint ASA/AICPA/RICS endeavor:

  • Had very little regulatory relationship with the UK regime, or with any standard-setting organisations outside of the U.S. (including, most importantly, the IVSC);
  • Offered uncertain career benefits to junior financial analysts compared to the CFA designation;
  • Was monitored but not adopted by the UK’s big auditors; and
  • Likely devalued the AICPA’s ABV certification and complicated RICS’ efforts to move beyond real property appraisal.

It’s little surprise that, in a quiet mention at the ASA Fair Value Spring Conference in New York City on May 4, the news was released that the fair value valuation credential was being discontinued.

While some firms (including the Big Four) attempted to support the programme and sent some of their valuers through the training, nearly all refused to require their people to be credentialed. Besides lack of awareness among the audit and corporate financial management marketplace, there were concerns over such issues as quality control and client confidentiality.

MPF will offer enduring benefits: The Mandatory Performance Framework (MPF) will continue to be used (though not “mandatory”). In fact, a revision is in the works to make it more streamlined, and some credentialing groups will incorporate it into certification training. The MPF helps make auditors more comfortable with valuation estimates, especially for intangibles, and it theoretically eased the concerns of U.S. regulators like the SEC and PCAOB. Global (and UK) regulators and the ICAEW did not participate or recognise the programme.

At this point, the credentialing organisations are working through details of the sunsetting process, and more information will be forthcoming.

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