The Financial Services Act 1986 (Single Property Schemes) (Exemption) Regulations 1989

Valuation and report

17.—(1) The terms of a trust based scheme must provide that any valuation and report made in the circumstances described in regulation 16 must comply with the requirements specified in paragraphs (3) and (4) and be made–

(a) in the case of consideration which is a freehold or leasehold interest in any building, by a qualified valuer; and

(b) in any other case, by an independent person who is qualified at the time of the report to be appointed auditor of a company which is not an unquoted company within the meaning of section 389(2)(a) of the Companies Act 1985 or the corresponding Northern Ireland enactment.

(2) A person shall not be regarded as independent for the purposes of paragraph (1)(b) if he is an officer or servant of the trustee or operator or is a partner of or in the employment of an officer or servant of either of those persons, and, for these purposes, an auditor of a company shall not be regarded as an officer or servant of it.

(3) A report complies with the requirements of this paragraph if it–

(a) states the price at which the units which are to be wholly or partly paid for by the consideration in question are to be issued;

(b) contains a description of the consideration, the method used to value it and the date of the valuation; and

(c) states the extent to which the price at which the units are to be issued is to be treated as paid up–

(i) by the consideration; and

(ii) in cash.

(4) A report complies with the requirements of this paragraph if it contains or is accompanied by a note by the valuer that–

(a) it appears to him that there has been no material change in the value of the consideration in question since the valuation; and

(b) on the basis of the valuation, the value of the consideration, together with any cash by which the price to be paid for the units on issue of the units is to be paid up, is not less than the price to be paid for the units.