Circular of the Ministry of Finance on Soliciting Public Opinions on the Measures for Regulating the Assets Valuation Industry (Revised Draft for Comment)
Circular of the Ministry of Finance on Soliciting Public Opinions on the Measures for Regulating the Assets Valuation Industry (Revised Draft for Comment)
Circular of the Ministry of Finance on Soliciting Public Opinions on the Measures for Regulating the Assets Valuation Industry (Revised Draft for Comment)
September 30, 2016
In order to implement the Assets Valuation Law, strengthen the regulation of the assets valuation industry and promote the healthy development of the assets valuation industry, the Ministry of Finance revised the Measures for the Approval and Regulation of the Assets Valuation Institutions (Order of the Ministry of Finance No.64, the "Order No.64"), drafted the Measures for Regulating the Assets Valuation Industry (Revised Draft for Comment) and hereby solicits public opinions. The general public may submit their comments prior to October 30, 2016 through the following channels:
1. Submit comments through the "Information Management System for Soliciting Public Opinions on Financial Laws and Regulations" on the homepage of the website (http://www.mof.gov.cn) of the Ministry of Finance of the People's Republic of China.
2. Submit comments through the "Public Opinion Soliciting System for Draft Laws and Regulations" on the homepage of the website (http://www.chinalaw.gov.cn) of the Legislative Affairs Office of the State Council.
3. Submit comments by posting mails to the Treaty and Law Department of the Ministry of Finance, No.3 Nansanxiang, Sanlihe, Xicheng District, Beijing (zip code 100820), and indicate "Soliciting Public Opinions on the Measures for Regulating the Assets Valuation Industry " on the envelopes.
Measures for Regulating the Assets Valuation Industry (Revised Draft for Comment)
Chapter I General Provisions
Article 1 In order to strengthen the regulation of the assets valuation industry and promote the healthy development of the assets valuation industry, these Measures are formulated according to the Assets Valuation Law of the People's Republic of China and other relevant laws, administrative regulations and the provisions of the State Council.
Article 2 The term "assets valuation" mentioned herein refers to the professional service behavior of assessing and estimating single assets, assets portfolio, enterprise value, assets loss or other economic interests, and issuing the assets valuation reports.
The assets valuation institutions and their assets valuation professionals shall comply with these Measures when engaging in business referred to in the preceding paragraph.
With respect to the matters involving state-owned assets or public interests and the statutory assets valuation business required to be appraised according to the Enterprise State-Owned Assets Law, the Company Law, the Highway Law, the Administrative Measures for State-Owned Assets Valuation and other laws and administrative regulations, the clients shall entrust the assets valuation institutions with the task of carrying out assets valuation in accordance with the assets valuation Law and other relevant laws and administrative regulations.
Article 3 The regulation of assets valuation industry shall adhere to the principles of delegating power, strengthening regulation, optimizing services, establishing standardized and transparent working procedures and enhancing in-event and post-event oversight.
Article 4 As the administrative department of the assets valuation industry, the Ministry of Finance shall be responsible for regulating the assets valuation industry nationwide, guiding and supervising local financial departments in their regulation of the assets valuation industry, deploying unified inspection of the assets valuation industry, as well as regulating the assets valuation institutions engaging in assets valuation business relating to securities and futures.
Article 5 The finance departments (bureaus) of all provinces, autonomous regions, municipalities directly under the Central Government shall be responsible for the regulation of the assets valuation industry within their jurisdiction, and may approve qualified municipal finance departments of municipalities with districts to regulate the assets valuation industry within their competence according to the needs of social-economic development with the approval from the Ministry of Finance.
Article 6 The China Appraisal Society shall be responsible for the self-regulation of the assets valuation industry nationwide, and assist the Ministry of Finance in the regulation of national assets valuation industry.
The assets valuation associations in all provinces, autonomous regions, municipalities directly under the Central Government and cities specially designated in the state plan shall be responsible for the self-regulation of the assets valuation industry within their jurisdiction, and assist the finance departments (bureaus) of provinces, autonomous regions, municipalities directly under the Central Government, or the municipal departments of finance of municipalities with districts (the "financial departments above the municipal level") with the regulation of the local assets valuation industry.
Article 7 The assets valuation professionals engaging in assets valuation business shall join asset assessment institutions, and shall join only one such institution to conduct assets valuation business.
Chapter II Targets Subject to Regulation
Article 8 The targets subject to assets valuation industry regulation include assets valuation institutions, assets valuation professionals and assets valuation associations.
Article 9 Assets valuation institutions shall be established in partnership or in corporation and their names shall include the word "valuation" as industrial identification.
Article 10 The assets valuation institutions shall establish and improve their quality control systems and internal management systems.
The quality control system shall include business quality control system, internal audit system and chief appraiser system.
The internal management system shall include personnel management system, financial management system, assets valuation business management system, and business file management system.
Article 11 An assets valuation institution shall appoint a chief appraiser and the partner or shareholder with the certificate of assets appraiser qualification (including jewelry valuation profession, the same below) shall serve as the chief appraiser in charge of exercising practice quality control.
Article 12 Assets valuation institutions shall draw on, manage and use the occupational risk funds or purchase occupational liability insurance subject to the specific provisions of the Ministry of Finance to establish the professional liability guarantee mechanism accordingly.
Article 13 Assets valuation institutions shall carry out the integrated management of their branches in respect of personnel, finance, code of practice, quality control, customer service, corporate image, informatization, etc.
Except for the valuation business relating to securities and futures, the assets valuation institutions may authorize their branches to issue assets valuation reports in the name of their branches.
Article 14 Where assets valuation institutions conduct assets evaluation business, they shall strictly abide by assets valuation standards, seriously implement assets valuation procedures, strengthen internal audit and strictly control practice risks.
An assets valuation institution conducting legal assets valuation business shall assure that a report is issued by two or more assets appraisers, signed by the legal representative or senior executive or managing partner authorized thereby, and is stamped with the seal of the assets valuation institution, and the legal representative or managing partner and the signing assets appraisers shall bear the liability according to the law.
Article 15 Assets valuation institutions shall ensure that their assets valuation professionals have the corresponding professional knowledge and practical experience.
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September 30, 2016
In order to implement the Assets Valuation Law, strengthen the regulation of the assets valuation industry and promote the healthy development of the assets valuation industry, the Ministry of Finance revised the Measures for the Approval and Regulation of the Assets Valuation Institutions (Order of the Ministry of Finance No.64, the "Order No.64"), drafted the Measures for Regulating the Assets Valuation Industry (Revised Draft for Comment) and hereby solicits public opinions. The general public may submit their comments prior to October 30, 2016 through the following channels:
1. Submit comments through the "Information Management System for Soliciting Public Opinions on Financial Laws and Regulations" on the homepage of the website (http://www.mof.gov.cn) of the Ministry of Finance of the People's Republic of China.
2. Submit comments through the "Public Opinion Soliciting System for Draft Laws and Regulations" on the homepage of the website (http://www.chinalaw.gov.cn) of the Legislative Affairs Office of the State Council.
3. Submit comments by posting mails to the Treaty and Law Department of the Ministry of Finance, No.3 Nansanxiang, Sanlihe, Xicheng District, Beijing (zip code 100820), and indicate "Soliciting Public Opinions on the Measures for Regulating the Assets Valuation Industry " on the envelopes.
Measures for Regulating the Assets Valuation Industry (Revised Draft for Comment)
Chapter I General Provisions
Article 1 In order to strengthen the regulation of the assets valuation industry and promote the healthy development of the assets valuation industry, these Measures are formulated according to the Assets Valuation Law of the People's Republic of China and other relevant laws, administrative regulations and the provisions of the State Council.
Article 2 The term "assets valuation" mentioned herein refers to the professional service behavior of assessing and estimating single assets, assets portfolio, enterprise value, assets loss or other economic interests, and issuing the assets valuation reports.
The assets valuation institutions and their assets valuation professionals shall comply with these Measures when engaging in business referred to in the preceding paragraph.
With respect to the matters involving state-owned assets or public interests and the statutory assets valuation business required to be appraised according to the Enterprise State-Owned Assets Law, the Company Law, the Highway Law, the Administrative Measures for State-Owned Assets Valuation and other laws and administrative regulations, the clients shall entrust the assets valuation institutions with the task of carrying out assets valuation in accordance with the assets valuation Law and other relevant laws and administrative regulations.
Article 3 The regulation of assets valuation industry shall adhere to the principles of delegating power, strengthening regulation, optimizing services, establishing standardized and transparent working procedures and enhancing in-event and post-event oversight.
Article 4 As the administrative department of the assets valuation industry, the Ministry of Finance shall be responsible for regulating the assets valuation industry nationwide, guiding and supervising local financial departments in their regulation of the assets valuation industry, deploying unified inspection of the assets valuation industry, as well as regulating the assets valuation institutions engaging in assets valuation business relating to securities and futures.
Article 5 The finance departments (bureaus) of all provinces, autonomous regions, municipalities directly under the Central Government shall be responsible for the regulation of the assets valuation industry within their jurisdiction, and may approve qualified municipal finance departments of municipalities with districts to regulate the assets valuation industry within their competence according to the needs of social-economic development with the approval from the Ministry of Finance.
Article 6 The China Appraisal Society shall be responsible for the self-regulation of the assets valuation industry nationwide, and assist the Ministry of Finance in the regulation of national assets valuation industry.
The assets valuation associations in all provinces, autonomous regions, municipalities directly under the Central Government and cities specially designated in the state plan shall be responsible for the self-regulation of the assets valuation industry within their jurisdiction, and assist the finance departments (bureaus) of provinces, autonomous regions, municipalities directly under the Central Government, or the municipal departments of finance of municipalities with districts (the "financial departments above the municipal level") with the regulation of the local assets valuation industry.
Article 7 The assets valuation professionals engaging in assets valuation business shall join asset assessment institutions, and shall join only one such institution to conduct assets valuation business.
Chapter II Targets Subject to Regulation
Article 8 The targets subject to assets valuation industry regulation include assets valuation institutions, assets valuation professionals and assets valuation associations.
Article 9 Assets valuation institutions shall be established in partnership or in corporation and their names shall include the word "valuation" as industrial identification.
Article 10 The assets valuation institutions shall establish and improve their quality control systems and internal management systems.
The quality control system shall include business quality control system, internal audit system and chief appraiser system.
The internal management system shall include personnel management system, financial management system, assets valuation business management system, and business file management system.
Article 11 An assets valuation institution shall appoint a chief appraiser and the partner or shareholder with the certificate of assets appraiser qualification (including jewelry valuation profession, the same below) shall serve as the chief appraiser in charge of exercising practice quality control.
Article 12 Assets valuation institutions shall draw on, manage and use the occupational risk funds or purchase occupational liability insurance subject to the specific provisions of the Ministry of Finance to establish the professional liability guarantee mechanism accordingly.
Article 13 Assets valuation institutions shall carry out the integrated management of their branches in respect of personnel, finance, code of practice, quality control, customer service, corporate image, informatization, etc.
Except for the valuation business relating to securities and futures, the assets valuation institutions may authorize their branches to issue assets valuation reports in the name of their branches.
Article 14 Where assets valuation institutions conduct assets evaluation business, they shall strictly abide by assets valuation standards, seriously implement assets valuation procedures, strengthen internal audit and strictly control practice risks.
An assets valuation institution conducting legal assets valuation business shall assure that a report is issued by two or more assets appraisers, signed by the legal representative or senior executive or managing partner authorized thereby, and is stamped with the seal of the assets valuation institution, and the legal representative or managing partner and the signing assets appraisers shall bear the liability according to the law.
Article 15 Assets valuation institutions shall ensure that their assets valuation professionals have the corresponding professional knowledge and practical experience.
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