Question & AnswerQ&A (SEC MEMORANDUM CIRCULAR NO. 3)
The purpose is to provide guidelines for the accreditation of appraisal companies to ensure competent evaluation of properties accepted as stock issuance consideration or for other purposes requiring property appraisal.
Only institutional appraisers accredited by the Commission (SEC) shall be engaged.
The appraisal company must be registered with the SEC, have a licensed appraiser certified by DTI, minimum 5 years experience, served at least one commercial bank and two public companies, have no adverse judgments, and be financially solvent with specified financial ratios.
They must be a professional appraiser licensed by the DTI and an officer/member in good standing of a registered association of appraisal companies.
They must have a minimum of 5 years in the appraisal business.
The appraisal company must be solvent and in sound financial condition with current and solvency ratios of at least 1:1 and a debt-equity ratio not exceeding 3:1.
The applicant must submit a notarized application, company profile, DTI license copy, certificate of good standing from a registered association, client list, certifications from clients, notarized certification of compliance, and latest audited financial statements.
The application fee is Five Thousand Pesos (P5,000.00).
It expires or is automatically delisted after two years unless renewed before the expiration date.
The accreditation may be withdrawn after due notice on reasonable grounds as determined by the Commission.