Code of Ethics
The Industry Standards Aren’t Strong Enough
NEBB International recognizes that different markets have different standards, however at the present time there is no one universal standard for the international market. We are committed to preserving the public trust. Therefore, we have developed a “Code of Ethics & Competency” Appraiser Awareness Program to protect the public from unsubstantiated or questionable machinery and equipment valuations and practices. Our seal serves to alert the public to the documentation we feel is necessary to prove that the appraisers/valuers are competent. This assures a valuation will be substantiated, accurate, irrefutable, defensible, and withstand scrutiny.
We Demand Ethical Excellence from Machinery and Equipment Valuation Professionals. Therefore, They MUST Comply with These 4 Strict Points…
- Ethical Obligations
- Advocacy Only Of The Appraisal
- Defensible Appraisal / Valuation
NEBB International Code of Ethics Guards The Public Against an Unpleasant and Costly Experience. That’s Why a CMEA Professional Designation is the PERFECT Avenue to Improve Professional Competence When Faced With Assigning a Value to Tangible Assets.
- An appraiser/valuer must not misrepresent his or her role when providing valuation services that are outside of appraisal practice.
- An appraiser/valuer must perform assignments ethically and competently in accordance with USPAP and any supplemental standards agreed to by the appraiser in accepting the assignment.
- An appraiser/valuer must not engage in criminal conduct.
- An appraiser/valuer must perform assignments without partiality. He or she must have objectivity and independence, and be without accommodation of personal interest.
- In appraisal/valuation practice, an appraiser/valuer must not perform as an advocate for any party or issue.
- An appraiser/valuer must not accept an assignment that includes the reporting of a pre-determined opinion or conclusion.
- An appraiser/valuer must not communicate assignment results in a misleading or fraudulent manner.
- An appraiser/valuer must not use or communicate a misleading or fraudulent report or knowingly permit an employee or other person to communicate a misleading or fraudulent report.
- An appraiser/valuer must not use or rely on unsupported conclusions relating to characteristics such as race, color, religion, national origin, gender, marital status, family status, age, receipt of public assistance income, handicap, or an supported conclusion that homogeneity of such characteristics is necessary to maximize value.
- The payment of undisclosed fees, commissions or things of value in connection with the procurement of an assignment is unethical.
- It is unethical for an appraiser/valuer to accept compensation for performing an assignment when it is contingent upon:
- the reporting of a predetermined result;
- a direction in assignment results that favors the cause of a client;
- the amount of a value opinion;
- the attainment of a stipulated result; or
- the occurrence of a subsequent event directly related to the appraiser’s opinions and specific to the assignment’s purpose.
- It is unethical for an appraiser/valuer to advertise for, or solicit assignments, in a manner that is false, misleading or exaggerated.
- An appraiser/valuer must protect the confidential nature of the appraiser-client relationship.
- An appraiser/valuer must act in good faith with regard to legitimate interest of the client and the use of confidential information and in the communication of assignment results.
- An appraiser/valuer must be aware of and comply with all confidentiality and privacy laws and regulations applicable in an assignment.
- An appraiser/valuer must not disclose confidential information or assignment results prepared for a client to anyone other than the client and persons specifically authorized by the client; local, region country enforcement agencies and such third parties as may be authorized by due process of law; or a duly authorized professional peer review committee except when such disclosure to a committee would violate applicable law or regulation.
- It is unethical for a member of a duly authorized professional peer review committee to disclose confidential information presented to the committee.
- An appraiser/valuer must prepare a work file for each appraisal. The file must include the name of the client and the identity, by name or type, of any other intended users; true copies of any written reports, documented on any type of media; summaries of any oral reports or testimony, or a transcript of testimony, including the appraiser/valuer’s signed and dated certification; and all other data, information, and documentation necessary to support the appraiser/valuer’s opinions and conclusions and to show compliance with this rule and all other applicable standards, or references to the location(s) of such other documentation.
- An appraiser/valuer must retain the work file for a period of at least five (5) years after preparation or at least two (2) years after final disposition of any judicial proceeding in which testimony was given, whichever period expires last, and have custody of his or her work file, or make appropriate work file retention, access and retrieval arrangements with the party having custody of the work file.
- An appraiser/valuer must disclose the lack of knowledge and/or experience to the client before accepting the assignment, take all necessary steps appropriate to complete the assignment competently, and describe the lack of knowledge and/or experience and the steps taken to complete the assignment competently in the report.
- The appraiser/valuer must disclose any interest the appraiser/valuer has in any item(s) being appraised.