BASEL II

Commencing January 1, 2008 Australia will follow the international banking fraternity by complying with the accords of the Basel II agreement.

In short the intent of the Basel Agreement is for financial institutions to quantify their exposure or risk to their outstanding loans and leases.

Part of the verification process is an increased emphasis on asset valuations not only at the commencement of the loan but also at regular intervals thereafter.

Furthermore the credibility of the valuation report and the professional qualifications of the valuers are becoming increasingly important. Indeed we understand that several leading banks will soon be insisting on minimum standards and qualifications for valuers.

By February, 2008 Pacific Asset Services will be one of the few companies in Australia that will have both the experience and the necessary international qualifications to satisfy the most rigorous and demanding standards of any bank or leasing company.

SOLVENCY II

The insurance industry is not far behind the financial institutions and the “Solvency II’ accord closely mirrors the intent of Basel II.

Although insurance companies – and banks for that matter- have, for a long time, monitored risk the new accords strive to make more meaningful assessments of the real risk and financial exposure to the company.

Key to this aim is accurate and dependable valuations of insured assets. What is the true cost of the asset replacement?

Of course this question is of equal importance to both the insured as well as the insurer. What is the real value of my asset and what if I needed to replace it? Am I adequately insured?