Legal Update: Accreditation of Valuation Company in the Trust Sector
Issue: No. 002P/23 – 3 February 2023
On 3 November 2022, the Non-Bank Financial Services Authority (“NBFSA”) issued a Prakas No. 052 Or.S.H/ Pr.K on the Accreditation of Valuation Company in the Trust Sector, which composes of 6 chapters and 27 articles (the “Prakas”).
This Prakas aims to determine the conditions and procedures to accredit real estate valuation company and real estate appraiser in the trust sector from the Trust Regulator (the “TR”), as well as rights and obligations for doing businesses in accordance with the laws and regulations in the trust sector.
The significate aspects of this Prakas are illustrated as follows:
Conditions to be a valuation company and an appraiser
| Type | Conditions for Applying for Accreditation/Qualified Accreditation | Renewal of Accreditation |
| Valuation Company | – Obtained a license from the REBPR;
– Established and doing business in Cambodia at least 2 years from the application date; – Having at least 1 appraiser. |
15 days before the expiration date of accreditation |
| Appraisers | – Having a certificate from the REBPR;
– Having appraisal experience in the real estate sector at least 3 years; – Obtained an appointment letter from the valuation company; – Attended a training course and examination arranged by TR or other training institutions authorized by TR with a validity of 2 years. |
15 days before the expiration date of qualified accreditation |
The obligations of accredited valuation company and appraiser
The valuation company and appraiser shall fulfill the following obligations:
- Comply with the required standards;
- Prepare an appraisal report with the minimum information;
- Report to TL in some cases; and
- Provide annual operation report to TL within 3 months after each financial year ended.
Annual Fee
| Type | Application Fee (Riels) Per Year | Application Examination Fee (Riels) Per Year | Accreditation Fee (Riels) Per Year | Total (Riels) Per Year |
| Valuation Company | 20,000 | 200,000 | 500,000 | 720,000 |
| Appraiser | 20,000 | 100,000 | 200,000 | 320,000 |
Please note that the application fee and application examination fee will not be refunded, in despite of the application form has been rejected by TR.
Penalties:
The valuation company and appraiser who violates any accreditation conditions shall be subject to an administrative sanction as follows:
- Warning;
- Rectification instruction;
- Restriction on accreditation;
- Suspension of accreditation; and
- Revocation of accreditation.
Disclaimer
The article is merely for general information purposes. It does not constitute a legal advice on the subject matter. If you have any questions or need any assistance, please feel free to contact us:
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SON Sokeng,
Partner, Managing Director sokeng.son@sithisak-lawoffice.com +855 12 885 870
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He has more than 8 years of professional experiences in corporate, commercial, investment and capital market sector in Cambodia. He has leaded a legal counsel team to advise and assist ACLEDA Bank Plc. in the process of listing on the Cambodia Securities Exchange (CSX). He has been a team member of a legal counsel team to advise and assist in the IPO process of Phnom Penh Autonomous Port (PPAP). He is currently leading a legal counsel to advise and assist in an IPO of a SME for its proposed listing on the growth board of the CSX. |
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Dr. CHHAK Limchheang,
Senior Legal Advisor, Deputy Head of Real Estate and Construction Practice Group limchheang.chhak@sithisak-lawoffice.com +855 89 813 160
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He has several years of professional experiences in real estate-related transaction and construction sector in Cambodia. He has advised local and foreign clients on acquisition and disposal of residential, industrial and commercial properties, on commercial lease, factory perpetual lease, real estate joint venture development and FIDIC agreements. Recently, he led counsel to advise on both real estate and tax issues of real estate development project with an approximate investment portfolio of USD 40 million in Kampot Province. He is currently leading a legal counsel to advise a major domestic company in their joint venture property development with an investment portfolio nearly USD 200 million in Phnom Penh. |
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