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5.1 Market Stability
5.2 Independent Asset Valuers
5.3 Data Standards
In-Country Assessment Information

Goal – A well developed and transparent financial system that includes strong supporting institutions and highly trained and ethical professionals that contribute to effective financial intermediation and deep and broad access to capital and financial services

5.1 Market Stability

Core Question:         Are market risks sufficiently transparent and diversified so that efficient capital allocation can occur? Yes – Strong, the global financial crisis impact has been moderate and the financial services sector has seen rapid growth.

Financial Reporting

5.1.1   What is the strength of the country’s auditing and reporting standards? Strong – 42nd out of  144; Score  5.1 out of 7

Financial Services

5.1.2   Are a wide variety of financial services and products available? Very Strong – 26th out of  144; Score  5.5 out of 7

Source: The Global Competitiveness Report  2012-2013, World Economic Forum
www.weforum.org/issues/global-competitiveness

Insolvency Process

Weak – Ranking – 143rd out of 183 Trend

5.1.3   What is the average time to complete bankruptcy proceedings? 4 years

5.1.4   What is the cost of bankruptcy proceedings as a percentage of the estate? 12%

5.1.5   What is the recovery rate of bankruptcy proceedings?  15.9 cents on the dollar

Source: Doing Business 2013 – Closing a Business www.doingbusiness.org/data/exploreeconomies/brazil

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5.2 Independent Asset Valuers

 

Core Question: Do trained, independent and ethical asset valuers exist for all types of assets? No – Weak, the profession is still dominated by engineers.

Survey Questions

Standards

SQ 17  How easy is it to find a valuer who implements International Valuation Standards? –   Weak – 64 companies listed as of 2007, standards still focus on the replacement cost approach.

 

Civil Society Resource: International Valuation Standards Council www.ivsc.org

Training

SQ 18  What is the level of training of valuers? Weak – while the level of training is high, it lacks focus on Generally Accepted Valuation Principals (3 approaches)

            Civil Society Resource: Appraisal Institute http://www.appraisalinstitute.org/

Ethics

SQ 19  Are opinions offered by valuers free of influence from parties to the transaction? Unknown

Civil Society Resource: International Valuation Standards Council
www.ivsc.org
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5.3 Data Standards

 

Core Question: Is accurate property information available electronically in formats that are consistent with international standards? Yes – Strong, although accurate sales data is not publicly available.

Survey Questions

Sales & Operating Data

SQ 20  A multiple listing service is an electronic exchange system where brokers and agents can widely share contracted real estate listings of properties that are for sale. Do multiple listing type services exist? No – Weak, data quality and exclusive listings are lacking.

Civil Society Resource: International Consortium of Real Estate Associations www.worldproperties.com

SQ 21  Do resources exist for obtaining building income and expense estimates? Yes – Strong

Civil Society Resource: SECOVI www.secovi.com.br/

Interchange Formats

SQ 22  Do electronic data interchange formats conform to international standards (ebXML – electronic business using extensive markup language)? No – Weak

Civil Society Resource: Open Standards Consortium for Real Estate International www.oscre.org

Technical Standards

SQ 23  Do building codes and office building measurement standards (ANSI/BOMA Z65.1) conform to international standards? Yes – Strong

          Civil Society Resource: Associacã Brasileira do Mercado Imobiliario (ABMI) www.abmi.org.br

 

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In-Country Assessment

 

Valuation Profession

FQ25.  How many independent valuers exist in the market? Can small  businesses obtain fair valuations for property they want to buy or sell?

 

FQ26. What are the valuation standards and do they conform to international and regional standards?

 

FQ27. What valuation methods and techniques are used in the market?

 

Data Availability

 

FQ28. How available is information for commercial properties that are for sale or that have sold?