5. Financial Transparency
5.1 Market Stability
5.2 Independent Asset Valuers
5.3 Data Standards
In-Country Assessment Information

5.  Financial Transparency- Strong

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 – Colombia has done a good job in its insolvency process and the financial sectors provide a wide variety of financial services to businesses, but its auditing and reporting standard is below the average.


Financial Reporting

5.1.1   What is the strength of the country’s auditing and reporting standards? Weak – 84th out of 144; Score 4.4 out of 7


Financial Services

5.1.2   Does the financial sector provide a wide variety of financial services to businesses? Strong – 66th out of 144; Score 4.7 out of 7

Source: The Global Competitiveness Report 2012-2013, World Economic Forum


Insolvency Process

Very Strong – Ranking – 21st out of 185 (2013) Trend 

5.1.3   What is the average time to complete bankruptcy proceedings? 1.3 years

5.1.4   What is the cost of bankruptcy proceedings as a percentage of the estate? 6%

5.1.5   What is the recovery rate of bankruptcy proceedings?  76.2 cents on the dollar

Source: Doing Business-2013 – Closing a Business



back to top

5.2 Independent Asset Valuers

Core Question:  Do trained, independent and ethical asset valuers exist for all types of assets? Strong – the Colombian Society of Appraisers and the Federation of Real Estate Associations work together to certify appraisers.


Survey Questions

5.2.1 Standards

SQ 19  How easy is it to find a valuer who implements International Valuation Standards? –   Strong

Civil Society Resource: National Registry of Appraisers


5.2.2 Training

SQ 20  What is the level of training of valuers? Strong


5.2.3 Ethics

SQ 21  Are opinions offered by valuers free of influence from parties to the transaction? Yes, Strong. A developing, independent valuation profession exists and an IVSC compliant code of conduct exists and is sporadically enforced.

Civil Society Resource: International Valuation Standards Council

Registro nacional de avaluadores,



back to top

5.3 Data Standards

Core Question:         Is accurate property information available electronically in formats that are consistent with international standards? Weak – There is no uniform electronic exchange system and the building codes and office building measurement standards do not conform to international standards.


Survey Questions

5.3.1 Sales & Operating Data

SQ 22  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, some internet sites starting to emerge, but no uniform system.



SQ 23  Do resources exist for obtaining building income and expense estimates? No – Weak


5.3.2 Interchange Formats

SQ 24  Do electronic data interchange formats conform to international standards (ebXML – electronic business using extensive markup language)? Unknown


5.3.3 Technical Standards

SQ 25  Do building codes and office building measurement standards (ANSI/BOMA Z65.1) conform to international standards? No – Weak



back to top

In-Country Assessment

Market Stability

FQ9               How stable has the property market been over the last several years?


Valuation Profession

FQ10              How many independent valuers exist in the market?


FQ11             How many companies exist and what is the average size of valuation companies?


FQ12             What are the valuation standards and do they conform to international and regional standards?


FQ13             What valuation methods and techniques are used in the market?


FQ14             Are there valuer associations in the market? What number and percentage of practitioners belong?


FQ15             What training programs are available to upgrade the quality of valuers?



FQ16             Are peer review mechanisms in place to assist in enforcing ethical behavior?



FQ17             What is the quality of valuation reports?


Data Availability

FQ18             What is the status of proprietary databases that include property information?


FQ19             What is the status of existing data sharing mechanisms for properties that are for sale or that have sold?


FQ20             Do valuers have established data sharing mechanisms


back to top