Guidance on financial regime for property auction activities

The Ministry of Finance is seeking feedback on the draft Circular guiding the financial regime in asset auction activities.

The draft regulations clearly define the financial regime for asset auction activities of asset auction organizations and organizations involved in the purchase and handling of non-performing loans. Accordingly, the management and use of funds collected from asset auction service fees, asset auction costs, proceeds from the sale of auction invitation documents, and other revenues (if any) are regulated as follows:

In accordance with the law on the financial autonomy mechanism of public non-business units and relevant laws, in the case where the organization conducting asset auctions is an Asset Auction Service Center;

Comply with the regulations of the law on enterprises in the case where the organization conducting the auction of assets is an asset auction business;

In accordance with the laws on enterprises and the laws on credit institutions, in cases where organizations buying and selling or handling bad debts conduct their own auctions of assets as stipulated in Clause 2, Article 64 of the Law on Auction of Assets.

According to the draft, the Asset Auction Council will be guaranteed funding by the owner of the auctioned asset to organize the auction.

Based on the prescribed expenditure items and levels, the Asset Auction Council is responsible for submitting to the asset owner the budget for organizing the auction, to be included in the overall cost estimate for asset disposal of the asset owner; based on this, the asset owner approves, within their authority, or submits to the competent authority for approval, the cost estimate for organizing the auction as part of the asset disposal cost estimate in accordance with the law.

The details of the expenditure include:

a) Costs of listing and publicly announcing the auction of assets;

b) Costs of organizing for auction participants to view the property;

c) Costs of organizing the auction (including the cost of renting a venue for the auction in case a physical auction location cannot be arranged; the cost of renting the National Asset Auction Portal or online auction information website to conduct the auction online; the cost paid to the asset auction organization to assign an auctioneer to conduct the auction);

d) Costs of preparing and organizing the sale of auction invitation documents;

d) Other expenses directly related to organizing and conducting the asset auction.

The expenditure levels are as follows: For expenditure items that already have standards, norms, and regulations prescribed by competent authorities or individuals, these standards, norms, and regulations shall be followed;

For outsourced services, the terms of the contract signed between the owner of the auctioned property and the service provider shall apply. The selection of the organization or individual providing the service shall comply with relevant laws and regulations.

For expenditures outside the scope of the above regulations, the Asset Auction Council shall submit the expenditure level to the organization or individual owning the auctioned asset for decision, ensuring compliance with the current financial management regulations of the State, and shall be responsible for its decision.

The Asset Auction Council prepares payment request documents and submits them to the owner of the auctioned property for payment of costs related to the auction as prescribed. For outsourced expenses, the Asset Auction Council is responsible for submitting the payment request to the service provider to the owner of the auctioned property in accordance with the law.

The owner of the auctioned property is responsible for retaining records and documents related to the auction organization costs of the Property Auction Council in accordance with the law.

The fees for auctioning assets are considered part of the asset disposal costs of the asset owner. The asset owner is responsible for compiling these costs and settling them in accordance with relevant laws.

Readers are invited to view the full draft and provide feedback here.

Source: https://thoibaonganhang.vn/huong-dan-che-do-tai-chinh-doi-voi-hoat-dong-dau-gia-tai-san-157321.html