Institute of Valuers of Sri Lanka (Amendment) Act 2019

This Act may be cited as the Institute of Valuers of

Sri Lanka (Amendment) Act, No. 9 of 2019.

The Long Title to the Institute of Valuers of Sri Lanka

Law, No. 33 of 1975 (hereinafter referred to as “the principal enactment”) is hereby repealed and the following Long Title substituted therefor:-

“A LAW TO PROVIDE FOR THE ESTABLISHMENT OF AN

INSTITUTE KNOWN AS THE INSTITUTE OF VALUERS OF SRI

LANKA AND A COUNCIL OF THE INSTITUTE WHICH SHALL BE

RESPONSIBLE FOR THE MANAGEMENT OF THE AFFAIRS OF THE

INSTITUTE AND FOR THE MAINTENANCE OF PROFESSIONAL

STANDARDS AND DISCIPLINE OF MEMBERS OF THE INSTITUTE;

AND FOR THE PROTECTION AND PROMOTION OF THE INTERESTS

OF THE PUBLIC IN RELATION TO THE PROFESSION OF VALUERS

AND FOR MATTERS CONNECTED THEREWITH OR INCIDENTAL

THERETO.”.

Section 2 of the principal enactment is hereby amended by the repeal of subsection (2) thereof and the substitution therefor of the following subsection:-

“(2) The members of the Institute shall consist of

Corporate and Non-Corporate members.’’.

Act, No. 9 of 2019

The following new section is hereby inserted immediately after section 2 of the principal enactment and shall have effect as section 2A in the principal enactment:-

2A. The grading of members of the Institute shall be as specifi ed in Schedule A to this

Act.”.

Section 5 of the principal enactment is hereby amended by the insertion immediately after paragraph (k)

thereof, of the following new paragraphs:-

“(kk) to determine, from time to time, the valuation standards, as the Corporation may deem appropriate;

(kkk) to determine a scheme of assessment of professional competence or any other requirement for continuous professional development;”.

Section 7 of the principal enactment is hereby repealed and the following section substituted therefor:-

7. (1) Any person who satisfi es the qualifi cations and experience specifi ed in

Schedule B to this Act may apply for the membership of the Institute in such form and manner as provided in Schedule C to this

Act.

Any person who has duly applied under subsection (1) may be enrolled as a member of the Institute on the payment of the prescribed entrance fee and membership fee.”.

The following new sections are hereby inserted immediately after section 7 of the principal enactment and shall have effect as sections 7A, 7B, 7C and 7D in the principal enactment:-

7A. (1) The period of membership of the

Institute shall be one year ending on the thirty fi rst day of December and subject to the provisions of section 22, be renewable annually.

Any member who intends to renew the membership shall apply for renewal not less than thirty days before the expiry of the membership.

The membership may be renewed on the payment of the prescribed renewal fee.

Each register shall be divided into separate parts and each part shall be in respect of a different grade in the class of members to which the register relates and shall contain the names, addresses and qualifi cations of persons enrolled in that grade.

The registers shall be maintained by the

Section 8 of the principal enactment is hereby amended in subsection (2) thereof as follows:-

by the repeal of paragraph (b) thereof and the substitution therefor of the following paragraph:-

by the repeal of paragraph (f) thereof and the substitution therefor of the following paragraph:-

by the repeal of the proviso to that section.

Section 9 of the principal enactment is hereby amended as follows:-

in subsection (2) thereof-

by the renumbering of subsections (3) and (4) as subsections (4) and (5) thereof.

Section 11 of the principal enactment is hereby amended in subsection (1) thereof as follows:-

by the repeal of paragraphs (b) and (c) thereof and the substitution therefor of the following:-

by the re-lettering of paragraph (d) as paragraph (c)

Section 17 of the principal enactment is hereby amended as follows:-

by the repeal of paragraphs (b), (c), (d), (e) and (f)

by the re-lettering of paragraphs (g) to (r) as paragraphs (b) to (m).

Section 18 of the principal enactment is hereby amended by the repeal of subsection (2) thereof and the substitution therefor of the following subsection:-

“(2) The quorum for a session of the Institute shall be two-fi fths or two hundred, whichever is less, of the Corporate Members of the Institute eligible to vote at such session.”.

Section 19 of the principal enactment is hereby amended as follows:-

by the repeal of subsection (4) thereof and the substitution therefor of the following:-

by the insertion immediately after subsection (4)

Section 20 of the principal enactment is hereby amended by the repeal of subsection (1) thereof and the substitution therefor of the following :-

“(1) The President of the Council may on his own motion or shall, on a requisition in writing made in that behalf by not less than fi ve members of the

Council or by not less than fi fty Corporate Members of the Institute who are eligible to vote, cause a special general meeting of the Corporate Members to be summoned.”.

Section 21 of the principal enactment is hereby amended by the repeal of subsection (4) thereof and the substitution therefor of the following:-

“(4) The Council may invite such other persons as it may deem necessary to attend any ordinary meeting of the Institute.”.

Section 22 of the principal enactment is hereby amended as follows:-

by the repeal of subsection (4) thereof and the substitution therefor of the following subsections:–

by the repeal of marginal note to that section and the substitution therefor of the following marginal note:-

Section 23 of the principal enactment is hereby amended as follows:-

by the repeal of subsection (1) thereof and the substitution therefor of the following subsection:-

by the repeal of subsection (2) thereof and the substitution therefor, of the following subsection :-

by the repeal of subsection (3) thereof;

by the renumbering of subsections (4) and (5) as subsections (3) and (4) of that section respectively;

by the insertion immediately after renumbered subsection (4), of the following new subsection :-

Section 24 of the principal enactment is hereby amended in paragraph (b) of subsection (1) of that section by the substitution for the words and fi gures “subsection (5)

of section 23” of the words and fi gures “subsection (4) of section 23”.

The following new section is hereby inserted immediately after section 25 of the principal enactment and shall have effect as section 25A of the principal enactment :-

25A. Any Corporate Member of the Institute may carry out any valuation of a movable property and intangible assets, provided he possesses such expertise as may be determined by the Council, to carry out such valuation.”.

The following new section is hereby inserted immediately after section 31 of the principal enactment and shall have effect as section 32 thereof:-

32. In this Act unless the context otherwise requires-

““Minister” means the Minister to whom the subject of Finance is assigned;

“soliciting” includes-

engaging in any manner, for any commission, payment or consideration, the services of any person to solicit clientele; or

advertising in any manner for the purpose of unfairly attracting clientele for him.”.

Schedule A of the principal enactment is hereby repealed and the following Schedule substituted therefor:-

“ SCHEDULE A

[Section 2A]

The grading of Corporate and Non-Corporate Members of the Institute shall be as follows:–

a Corporate Member of the Institute shall be graded as a Fellow

a Non-Corporate Member of the Institute shall be graded as an

Schedule B of the principal enactment is hereby repealed and the following Schedule substituted therefor:-

“ SCHEDULE B

[Section 7]

A person shall be eligible to be enrolled as a Fellow Member:–

if he has served a minimum of fi fteen years in the grade of Professional Associate Member and is in the profession of valuation in accordance the scheme of assessment of professional competence or any other requirement for continuous professional development determined under section 5:

if he has acquired such knowledge of valuation and eminence in the profession that, in the opinion of the Council, his admission as a Fellow Member would promote the interests of the profession.

A person shall be eligible to be enrolled as a Professional Associate

if he has passed the Final or the Direct Final Examination of the Institute or the B.Sc Degree in Estate Management of the

if he is a Probationary Member with a minimum of two years post qualifying full time experience in the profession of valuation practice monitored as directed by and acceptable to the Council; or

if he is a Probationary Member with post qualifying experience in the profession of valuation, monitored as directed by and acceptable to the Council, for a minimum number of years of part time experience considered as equivalent to two years full time experience and further is in the profession of valuation in accordance the scheme of assessment of professional competence or any other requirement for continuous professional development determined under section 5;or

if he has minimum of four years full time experience in teaching the subject of valuation in a Course recognized by the Council, in any University.

A person shall be eligible to be enrolled as a Licentiate

if he is over 30 years of age; and

if he has practiced as a Valuer for not less than seven years prior to January 3, 1977 and possesses a certifi cate of competence awarded by the Council.

A person shall be eligible to be enrolled as a Probationary

if he has successfully completed a Degree or Diploma Course recognized for admission to the grade of Professional Associate

if he is in the profession of valuation in accordance with the scheme of assessment of professional competence or any

A person shall be eligible to be enrolled as a Student Member–

if he is over eighteen years of age; and

if he is registered in an educational institution recognized by the Council, as a Student following an internal or external, full time or part time, Degree or Diploma Course as the case may be, leading to qualifi cations recognized for admission to the grade of Professional Associate Member as specifi ed in paragraph (2) (a) of this Schedule.

The principal enactment is hereby amended by the addition immediately after Schedule B thereof of the following new Schedules which shall have effect as

Schedule C and Schedule D of that enactment:-

“ SCHEDULE C

[Section 7]

Every application for enrolment in any grade of Corporate Members shall:-

be made to the Honorary General Secretary of the Council;

be in such form as may be provided for the purpose by the

state the qualifi cations by virtue of which the applicant is eligible for enrolment in that grade and be supported by an affi davit as to such qualifi cations;

be signed by the applicant;

be accompanied by the amount of the appropriate application fee, entrance fee and membership fee; and

be recommended by two members of the Council or by four members of the Institute of whom one shall be a Fellow, one

Every application for enrolment in any grade of Non-Corporate

be made in such form as may be provided for the purpose by the

state the qualifi cations by virtue of which the applicant is eligible for enrolment in that grade and where the application is for enrolment in any grade other than that of Honorary Member, be supported by an affi davit as to such qualifi cations;

be signed by the applicant;

where such application is for enrolment in any grade other than that of Honorary Member, be accompanied by the amount of the appropriate application fee, entrance fee and membership fee, or where the application is for enrolment as an Honorary Member, be accompanied by the appropriate membership fee; and

be recommended by atleast two Corporate Members.

unbefi tting his status as a member;

discrediting or attempting to discredit the profession of valuation or the Institute;

involving in any act detrimental to the profession of valuation or undermining the interests of the Institute;

discrediting or attempting to discredit the professional reputation or skill of any other member;

when acting for a client or when in contemplation of acting for a prospective client, whose interests confl ict or may confl ict with his own, or those of any of his business associates, not disclosing the relevant facts forthwith to the client or prospective client and to the business associates and where such disclosure is oral, not confi rming the same in writing at the earliest opportunity and not informing the client that he will be unable to act or continue to act unless the client requests him to do so;

failure to ensure that neither he personally, nor any fi rm or company in the profession of valuation, of which he is a

failure to obtain suffi cient information to warrant the expression of an opinion;

quoting a fee in competition for professional services without having received an invitation to do so and without suffi cient information to enable the member to assess the nature and scope of the services required;

having once quoted a fee for professional services, revising that quotation taking into account the fee quoted by another member for the same service;

quoting a fee for professional services which is to be calculated by reference to the fee quoted or charged by another member;

accepting any professional matter which may embarrass him by reason of his holding any offi ce or appointment or where there is a loss of confi dence between a member and his client;

not giving reasonable notice to a client on behalf of whom the member ceases to act:

disclosing personal or confi dential information acquired in the performance of any professional work except when required to do so by the person who entrusted him with that work or

resorting by himself or through another, directly or indirectly, to the practice of soliciting work;

using any advertisement, stationery, card or announcement by a member containing-

an inaccurate statement of fact;

an explicit solicitation of instructions;

an explicit comparison between the services offered by the member and the services offered by other members or fi rms;

a claim by a member or his fi rm, to have been “Specialized in” or “Expert in” any particular aspect of the profession of valuation;

appearing in any other name or designation different to that by which he is registered in the Institute when he performs any professional functions such as issuing valuation reports and advice on matters relating to valuation unless such name or designation is recognized by the Institute;

displaying gross negligence in the performance of his professional work;

knowingly, negligently or fraudulently expressing an incorrect opinion on valuation or furnishing an incorrect valuation, to a client;

deviating from or failure to comply with any valuation standards determined under section 5, without a reason acceptable to the

tampering with the membership seal or any other form of identity issued to the members by the Institute.”.

All persons who are in the grades of

Where the period of validity of any enrolment made under the provisions of the principal enactment on or before the date of commencement of this Act, has not expired on the date of the commencement of this Act,

Any Register maintained under the provisions of the principal enactment on or before the date of commencement of this Act shall be deemed to have been maintained under section 7C as inserted by this Act.

In the event of any inconsistency between the

Sinhala and Tamil texts of this Act, the Sinhala text shall prevail.

Act, No. 9 of 2019