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Legal alert no. 16

The Portuguese Securities and Exchange Commission (“CMVM”), published, in its website, on 24 January 2017, Regulation no. 1/2017, regarding the reporting duties of the real estate appraisers (“the Regulation”).

This is the first Regulation approved by the CMVM in 2017and emerges within the scope of Law n. 153/2015, of 14 September, which has approved the legal regime applicable to the access and the activity of real estate appraisers which provide services to entities of the national financial system.

In accordance with article 22/1 of Law no 153/2015, CMVM is the competent entity to approve the necessary regulation on the matter of real estate appraisers’ reporting duties before CMVM, which is now developed in this Regulation.    

Pursuant to article 1 of the Regulation, the reporting duties set out therein are applicable to the real estate appraisers registered with CMVM, natural or legal persons, in relation to the activity performed under the scope of Law no. 153/2015.

Therefore, the referred real estate appraisers must report to CMVM, until 31 March of each year, and in relation to the activity performed during the preceding year, (i) the number of real estate assessments carried out (ii) the global amount of the real estate evaluated; (iii) the total amount of the turnover of the real estate assessment services; (iv) the percentage of the invoiced amount regarding the real estate assessment services in relation to the total turnover of the services provided; (v) the percentage of the invoiced amount regarding the real estate assessment services to the main contracting entity in relation to the total amount of the real estate assessment services’ turnover; (vi) the number of complaints received; (vii) the disclosure of the type of  real estate evaluated;  (viii) the disclosure of the type of entities that have agreed to be provided with the assessment services and, finally, (ix) the disclosure of the districts and autonomous regions where the assessments were carried out.  

The reporting of the activity, in the case of appraisers which are legal persons and in the case of appraisers who are natural persons whose annual amount of direct invoicing to entities of the national financial system for the real estate assessment services is higher than € 10 000, must be made in accordance with the structure and content foreseen in Annex I of the Regulation. 

In turn, in other cases, namely, in case of (i) appraisers who are natural persons whose annual amount of direct invoicing to entities of the national financial system for the services provided is lower or equal to €10 000; (ii) appraisers who are natural persons whose activity has been solely performed in the name and on behalf of one or more real estate appraisers which are legal persons and (iii) appraisers who are natural persons, registered with CMVM that, in the period covered by the reporting, have neither invoiced the real estate assessment services directly to entities of the national financial system, nor provided real estate assessment services to appraisers which are legal persons, the report must be made in accordance with Annex II of the Regulation.  

Finally, it is foreseen that the required information shall be sent to CMVM in a computer file, in accordance with the terms established in CMVM’s Regulation no. 3/2016 regarding the Reporting Duties, through the CMVM’s extranet, in the case of Annex I and by email  (peritos@cmvm.pt), in the case of Annex II.

In relation to the activity carried out in 2016, the Regulation foresees a transitory regime, under which the real estate appraisers registered with CMVM must communicate, until 31 March 2017, by email, the information related to the activity carried out in that year, in accordance with Annex II.

The Regulation is still awaiting the publication in the Portuguese Official Gazette and will enter into force on the day following its publication.  

To access the full version of the Regulation, please click on the following hyperlink –

http://www.cmvm.pt/pt/Legislacao/Legislacaonacional/Regulamentos/Pages/Reg_1_2017.aspx?v=

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