In 2019, Bank of Russia submits 250 complaints to appraisers’ SROs
In 2019, the Bank of Russia’s Risk Analysis Service (RAS) sent to self-regulatory organisations (SROs) as many as 250 complaints about appraisers, according to a review of interaction between the RAS and appraisers’ SROs.
The number of complaints increased by 1.25 compared to the previous year. Of this number, 205 were first-time complaints, 39 repeat complaints and two complaints were addressed to a SRO's governing board.
At the same time, there continues to be a problem with SRO relations: identified significant violations are classified by SROs as technical errors that do not affect the value of asset subject to appraisal. Thus, unscheduled SRO inspection reports fail to confirm such violations.
In 2019, following review of 250 complaints against 172 appraisers, SRO committees made 63 disciplinary actions against 58 appraisers (60 complaints): 54 warnings (86%), 7 instructions to eliminate violations (11%) and 2 suspensions of an appraiser’s licence (3%).
One-off suspensions of appraisal activity (all for a very short term, no longer than one month) still fail to improve the quality of appraiser services, including for organisations supervised by the Bank of Russia, their clients and counterparties, notes the review.
According to the Bank of Russia, the work conducted by SROs to address the complaints against appraisers fails to reduce the number of violations in appraisal reports, which means that additional tightening of control over appraisers’ activity is required.