The results of the regulatory impact analysis in the sphere of appraisal activities, which it is proposed to transfer to the competitive environment, were presented today during a public discussion at NCE

The event was attended by deputies of the Mazhilis, representatives of state bodies, professional associations of appraisers, and the entrepreneurs themselves engaged in this field.

Deputy Chairman of the National Chamber of Entrepreneurs Eldos Ramazanov said that in order to implement the Decree of the President on drastic measures to improve the business environment, as well as in accordance with the 97-step of plan of the nation "100 concrete steps", currently the state together with NCE "Atameken" conducts the reform to empower citizens and businesses to participate in the decision-making process through the development of self-regulation institute.

On 30^th of January 2016 to coordinate the implementation of Step 97, by the order of the Prime Minister was set up a permanent commission, which approved the basic approaches for the transfer of state functions to the competitive environment and self-regulatory organizations.

In the field of appraisal, which it is proposed to transfer to the competitive environment, regulatory impact analysis (RIA) was conducted by the Ministry of Justice together with NCE and professional appraisers.

Deputy Minister of Justice of Kazakhstan Zhanat Eshmagambetov said that first of all they suggest to transfer to the competitive environment such functions, as the development of standards for assessment and program of professional training of specialists in the field of appraisal activities, licensing of appraisal activity, conducting the examination of persons applying and qualifying for this type of activity, the promotion of competition in the market services of assessment through the creation of equal conditions for all the subjects of appraisal activity, the exercise of state control in the field of appraisal activities of appraisers.

The Ministry of Justice intends to leave the functions such as the implementation of the state policy in the field of appraisal activities, the development and approval within its competence regulations, the implementation of state control over the chambers of appraisers - self-regulatory organizations.

Director of the Department of legislation and self-regulation of the National Chamber Aizhan Bizhanova reported that in the course of ARV the working group examined three alternatives - the preservation of the current situation; information campaign (the introduction of the rating activity of the chambers of appraisers and their members) and the introduction of self-regulation based on mandatory membership with definition of the optimal structure of self-regulation (a self-regulatory organization or multiplicity of SRO).

The participants of the meeting, as a whole, supported Alternative 3 - the introduction of self-regulation based on mandatory membership. In this case the question of who will be the subject of such association in the SRO, and the number of prospective SRO on the market, caused a heated debate among the participants.

What's more profitable - a plurality of self-regulatory organizations or single SRO? This consolidation will combine legal or physical bodies? And how will work appraisers in a particular case? These three issues have become key in the discussion.

"The main issue of concern for appraisers today is a model of self-regulatory organization (SRO). Thus, the Republican Chamber of Appraisers (RCA), acting on behalf of 10 chambers, suggested the creation of a single SRO with the branch network in the country, with unification of legal entities. At the same time its members voiced concerns over the exclusion of individual entrepreneurs from full market participants (currently, individual entrepreneurs and legal entities are authorized to engage in appraisal activities on the basis of a license, where the IE are 30%). The remaining six chambers, which are not included in the RCA (membership is voluntary) offer an alternative model - the multiplicity of SRO with membership of individual entrepreneurs. This model was based on the best international practices, and flowed from the preliminary results of the regulatory impact analysis as the most optimal structure, leveling most of the problems in the field of appraisal. Of course, a single embodiment of SRO is ideal in terms of constructive work with appraisal community. However, under this approach, there are certain risks, that there will be appraisers who do not agree with the policy of a single SRO. These contradictions can become an obstacle to the implementation of appraisal activities. According to a survey conducted by the Department of Justice in conjunction with the estimated chambers, most of the appraisers expressed a desire to introduce self-regulation institute, based on the multiplicity of the SRO, combining natural persons", - said Deputy Minister of Justice of Kazakhstan Zhanat Eshmagambetov.

According to him, the study of the world experience has shown that in developed countries, such as Great Britain, Italy, America, operates this model.

The representative of the Kostanai regional chamber of appraisers Erken Kamanbaev on behalf of his colleagues in the region called for the preservation of the existing model, which provides the independence and autonomy of the regional chambers to combine in unions and associations for the development of uniform standards for appraisers and other documents regulating their activities.

Chairman of the Presidium of the Association of Legal Entities "Republican chamber of appraisers" Tynyshbay Kartzhanov spoke in favor of the creation of a single SRO, stressing that RCA will not be its successor, as in this case, an entirely new organization will be established.

"In the former Soviet Union, apart from Russia, a single SRO operates in the field of appraisal. And the examples of other countries with a developed market are not typical for the Republic of Kazakhstan, since they institute is more than 100 years, and the basic organizational issues have been resolved", - said Tynyshbay Kartzhanov, to what objected Arman Nurkin, representative of KPMG company on behalf of the" Big Four " who noted the presence common international standards for evaluation in the field, by analogy with IFRS.

Representatives of the "Big Four" evaluators were also made for the effectiveness of the plurality of the SRO of the possibility of exclusion probability lobbying of various appraisal companies. The maximum elimination of the effect on the business as well as business activities is provided by consolidating such SROs only natural persons, because only in this case, increasing their share of professional responsibility.

Representative of the Chamber of appraisers "Chamber of Professional Appraisers" Khadizhat Uvaysova also supported the model of multiple SROs.

"One of SRO - is the risk of inefficient state control of the SRO. If we have a single SRO, the State can do nothing, state control will be ineffective. Because unscrupulous activities of one SRO would not entail the application to it of liability measures that could be applied to more than one SRO for example, to suspend or to exclude from the SRO registry. Close or eliminate one SRO would be impossible, because in this case, all appraisers of Kazakhstan will become illegitimate. The procedure of opening / closing a new SRO takes time and, therefore, all this time Kazakhstan will have no  organization", - said Khadizhat Uvaysova.

She also stressed that in the case of a single SRO, increase the risk of monopolization of the market and the existence of corruption schemes.

In the course of the discussion of the optimal structure the majority supported the preservation of the evolutionarily formed consolidations appraisers based on trust to a particular Chamber (multiplicity). This model is most appropriate in view of the nature of the appraisal activities.

According to experts, the presence of a multiplicity of SRO, will increase the competitiveness of appraisers and quality of services they provide, as well as prevent the monopolization of entrepreneurship.

"All sounded proposals will be considered at the final RIA, which will soon be submitted to the Interdepartmental Commission on the development of entrepreneurship", - assured Aizhan Bizhanova....