AIRCRAFT APPRAISER

ETHICS

AND COMPLIANCE RULES

Service You Can Trust and Count

On

Conduct, Management,

Confidentiality and Record Keeping

To promote and preserve the public trust inherent in professional appraisal practice, an aircraft appraiser must observe the highest standards of professional ethics. The following Ethics and Compliance Rules are divided into four sections: Conduct, Management, Confidentiality, and Record Keeping. The first three sections apply to all aircraft appraisal practices and all four sections apply to appraisal practice performed under Uniform Standards of Professional Appraisal Practice (USPAP) and membership in the National Aircraft Appraisers Association (NAAA). Since 1980 the NAAA has been the Certification entity and has established the standards and Code of Ethics for professional aircraft appraisers in the United States and abroad.  NAAA appraisals are accepted by financial institutions, governement agencies, and the courts as the true value of the aircraft we appraise.

Conduct:

Compliance with USPAP is required when the aircraft appraiser is obligated by law or regulation, or by agreement with the client or intended users, to comply. In addition to these requirements, an individual should comply any time that individual represents that AERONUVO is performing an appraisal service. AERONUVO must not misrepresent their role when providing valuation services that are outside of appraisal practice. Honesty, impartiality, and professional competency are required of all appraisers under these Uniform Standards of Professional Appraisal Practice (USPAP). To document recognition and acceptance of his or her USPAP-related responsibilities in communicating an appraisal, appraisal review, or appraisal consulting assignment completed under USPAP, an appraiser is required to certify compliance with USPAP. • An appraiser must perform assignments ethically and competently, in accordance with USPAP. • An appraiser must not engage in criminal conduct. • An appraiser must perform aircraft appraisal assignments with impartiality, objectivity, and independence, and without accommodation of personal interests. • An aircraft appraiser must not advocate the cause or interest of any party or issue. • An aircraft appraiser must not accept an assignment that includes the reporting of predetermined opinions and conclusions. • An aircraft appraiser must not communicate assignment results in a misleading or fraudulent manner. An appraiser 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 must not use or rely on unsupported conclusions relating to characteristics such as race, color, religion, national origin, gender, marital status, familial status, age, receipt of public assistance income, handicap, or an unsupported conclusion that homogeneity of such characteristics is necessary to maximize value.

Management: 

The payment of undisclosed fees, commissions, or things of value in connection with the procurement of an assignment is unethical. Disclosure of fees, commissions, or things of value connected to the procurement of an assignment must appear in the certification and in any transmittal letter in which conclusions are stated. In groups or organizations engaged in appraisal practice, intra-company payments to employees for business development are not considered unethical. Competency, rather than financial incentives, should be the primary basis for awarding an assignment. It is unethical for an appraiser to accept an assignment, or to have a compensation arrangement for an assignment, that is contingent on any of the following: 1. the reporting of a predetermined result (e.g., opinion of value); 2. a direction in assignment results that favors the cause of the client; 3. the amount of a value opinion; 4. the attainment of a stipulated result; or 5. the occurrence of a subsequent event directly related to the appraiser’s opinions and specific to the assignment’s purpose. Advertising for or soliciting assignments in a manner that is false, misleading, or exaggerated is unethical. In groups or organizations engaged in appraisal practice, decisions concerning finder or referral fees, contingent compensation, and advertising may not be the responsibility of an individual appraiser, but for a particular assignment, it is the responsibility of the individual appraiser to ascertain that there has been no breach of ethics, that the assignment is prepared in accordance with these Standards, and that the report can be properly certified when required by Standards Rules.

Confidentiality:

• An aircraft appraiser must protect the confidential nature of the appraiser- client relationship. • An aircraft appraiser must act in good faith with regard to the legitimate interests of the client in the use of confidential information and in the communication of assignment results. • An aircraft appraiser must be aware of, and comply with, all confidentiality and privacy laws and regulations applicable in an assignment.   • An aircraft appraiser 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; state enforcement agencies and such third parties as may be authorized by due process of law; and 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. • When all confidential elements of confidential information are removed through redaction or the process of aggregation, client authorization is not required for the disclosure of the remaining information, as modified.

Record Keeping:

An appraiser must prepare a workfile for each appraisal, appraisal review, or appraisal consulting assignment. The workfile must include: 1. the name of the client and the identity, by name or type, of any other intended users; 2.  true copies of any written reports, documented on any type of media; 3. summaries of any oral reports or testimony, or a transcript of testimony, including the appraiser’s signed and dated certification; and 4. all other data, information, and documentation necessary to support the appraiser’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 aircraft appraiser must retain the workfile 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 the appraiser provided testimony related to the assignment, whichever period expires last. • An aircraft appraiser must have custody of his or her workfile, or make appropriate workfile retention, access, and retrieval arrangements with the party having custody of the workfile.