Measures for Financial Supervision and Administration of the Asset Appraisal Sector
Measures for Financial Supervision and Administration of the Asset Appraisal Sector
Measures for Financial Supervision and Administration of the Asset Appraisal Sector
Order of the Ministry of Finance of the People's Republic of China No. 86
April 21, 2017
The Measures for Financial Supervision and Administration of the Asset Appraisal Sector, adopted at the executive meeting of the Ministry of Finance, is hereby promulgated and comes into force on June 1, 2017.
Xiao Jie, Minister of the Finance
Chapter I General Provisions
Article 1 In order to strengthen financial supervision and administration of the asset appraisal sector and promote healthy development of this sector, these Measures are specially formulated in accordance with the Asset Appraisal Law of the People's Republic of China (hereinafter referred to as the Asset Appraisal Law) and other laws, administrative regulations and related provisions of the State Council.
Article 2 These Measures are applicable to the professional service acts carried out by assets appraisal institutions and their assets appraisal professionals of valuating, estimating, and issuing assets appraisal reports on individual assets, assets portfolios, enterprise value, financial interests, losses on assets, or other economic interests as commissioned, as well as supervision and administration of the asset appraisal sector by the Ministry of Finance.
Where the engagement of asset appraisal institutions and their assets appraisal professionals in aforesaid business shall be managed by other administrative authorities of appraisal according to related laws, administrative regulations and the provisions of the State Council, other related provisions should be implemented.
Article 3 For statutory assets appraisal business involving the appraisal of state-owned assets, public interests, and other matters subject to appraisal in accordance with laws and administrative regulations as stipulated in Article 2 of these Measures (hereinafter referred to as the "statutory assets appraisal business"), the client shall entrust an asset appraisal institution for asset appraisal in accordance with the asset appraisal law and related laws and administrative regulations.
Article 4 The principle to combine the administrative supervision, industrial self-regulation and self-management of asset appraisal institutions shall be applied for supervision and administration of the asset appraisal sector by the Ministry of Finance.
Article 5 The Ministry of Finance shall plan as a whole the financial department's supervision and administration of the asset appraisal sector, formulate related supervision and administration measures and basic guidelines for asset appraisal, guide and urge local financial departments for supervision and administration work.
The Ministry of Finance will be responsible for the supervision and administration of the asset appraisal institutions engaged in the asset appraisal business related to securities and futures implemented by financial departments.
Article 6 Financial departments (bureaus) of all provinces, autonomous regions, municipalities directly under the Central Government and cities specifically designated in the state plan (hereinafter referred to as the provincial financial departments) shall be responsible for supervision and administration of the asset appraisal sector in their respective administrative regions.
Article 7 The China Appraisal Society shall take charge of self-regulation management of the national asset appraisal sector in accordance with laws, administrative regulations, these Measures and the articles of association of the society.
The local asset appraisal society shall take charge of self-regulation management of the local asset appraisal sector in accordance with laws, regulations, these Measures and the articles of association of the society.
Article 8 Except for provisions of Article 16 of these Measures, asset appraisal business of asset appraisal institutions shall not be subject to any administrative region or industry restriction. No organization or individual may have illegal intervention.
Chapter II Asset Appraisal Professionals
Article 9 Asset appraisal professionals include asset appraisers (including jewelry appraisal, the same hereinafter) and other asset appraisal practitioners with professional knowledge and practical experience in asset appraisal.
Asset appraisers refer to asset appraisal professionals passing the uniform national qualification examination for asset appraisers organized by the China Appraisal Society.
Other asset appraisal practitioners engaged in the asset appraisal business described in Article 2 of these Measures shall accept supervision by the financial department. Except for statutory asset appraisal business, necessary asset appraisal professional knowledge and practice experience shall be subject to self-evaluation and determination by the asset appraisal institution.
Where other professional appraisers under the administration of other administrative departments of appraisal are engaged in the asset appraisal business specified in Article 2 of these Measures, provisions of Article 3 shall be applied.
Article 10 Asset appraisal professionals engaging in asset appraisal business shall join asset appraisal institutions, and shall join only one such institution to conduct asset appraisal business.
Asset appraisal professionals shall sign a labor contract with the asset appraisal institution, establish the social insurance coverage relationship and handle personnel files storage formalities in accordance with related national regulations.
Article 11 Asset appraisal professionals engaging in asset appraisal business shall observe laws, administrative regulations and the provisions of these Measures, perform the asset appraisal principles and various rules and systems of the asset appraisal institution and sign the asset appraisal report according to the law. They shall not sign any asset appraisal report for business not undertaken by them or any asset appraisal report with major omission.
Personnel not obtaining the asset appraiser qualification shall not sign an asset appraisal report for statutory asset appraisal business; otherwise, the report shall be in vain.
Article 12 Asset appraisal professionals shall accept the self-regulation management of the asset appraisal association and the self-management of the asset appraisal institution and shall not be engaged in any activity with prejudice to the legitimate interests of the asset appraisal institution.
Asset appraisal professionals joining the asset appraisal association shall equally enjoy rights specified in the articles of association and perform obligations specified thereof.
Chapter III Asset Appraisal Institutions
Section I Self-management of institutions
Article 13 The asset appraisal Institution shall be in the form of partnership or corporation according to the law and shall meet the conditions specified in Article 15 of the Asset Appraisal Law.
Asset appraisal institutions not meeting the conditions specified in Article 15 of the Asset Appraisal Law shall not undertake asset appraisal business.
Article 14 Asset appraisal institutions engaging in asset appraisal business shall observe asset appraisal principles, perform the asset appraisal procedure, strengthen internal audit and strictly control professional practice risks.
When conducting statutory asset appraisal business, the asset appraisal institution shall designate at least two asset appraisers to undertake it. Asset appraisal institutions without more than two asset appraisers shall not carry out statutory asset appraisal business.
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