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RULES OF FIT AND PROPER PERSON

MAJLIS PELELONG MALAYSIA
(THE AUCTIONEERS COUNCIL OF MALAYSIA)

GENERAL RULES OF AUCTIONEERS CONDUCT
AS FIT AND PROPER PERSON.

1.  Evidence as to character and financial position.
An auctioneer's shall require the production of sufficient evidence to satisfy him that the character and financial position are such that he is having regard to the interests of the public, a fit and proper person to hold such a license, and that the character of every person who it is proposed shall be authorized to conduct auction sales under the license is such that he is a fit and proper person for the purpose.

2. Knowledge of Act and code
An auctioneer must have a reasonable knowledge and understanding of the Act.

3. Fiduciary obligations
An auctioneer must comply with a fiduciary obligation incurred as an auctioneer.

4. Honesty, fairness and professionalism
(1) An auctioneer must act honestly, fairly and professionally in the conduct of an auctioneering practice 
(2) an auctioneer must treat a customer honestly and fairly.

5. Skill, care and diligence
(1) An auctioneer must exercise reasonable skill, care and diligence in the conduct of an auctioneering practice.
(2) An auctioneer must complete all work for a client as soon as is reasonably practicable.

6. Auctioneer to act in client’s best interests
An auctioneer must act in a client’s best interests unless it is unlawful or unreasonable to do so.

7. Auctioneer to act in accordance with client’s instructions
(1) An auctioneer must act in accordance with a client’s instructions unless it is contrary or otherwise unlawful to do so. 
Example—An auctioneer must not market, or advertise or offer to sell, property on terms different from the terms authorised by the client.
(2) However, the price at which an auctioneer offers to sell property must be in accordance with the client’s written instructions.

8. Auctioneer to keep client informed of developments
(1) An auctioneer appointed to sell property for a client must keep the client informed of any significant development or issue in relation to the property.
(2) An auctioneer must immediately communicate to the client each expression of interest, whether written or oral, about the sale of the property.

9. Auctioneer to ensure employees comply with Act.
(1) An auctioneer who is a principal licensee must take reasonable steps to ensure a registered employee of the auctioneer complies with the Act and this code in relation to the auctioneer’s business. 
(2) An auctioneer who is an employed licensee in charge of an auctioneer’s business at a place of business must take reasonable steps to ensure a registered employee at the place complies with the Act.

10. Fraudulent or misleading conduct
An auctioneer must not engage in conduct that is fraudulent or misleading in the conduct of an auctioneering practice.

11. High pressure tactics, harassment or unconscionable conduct
An auctioneer must not engage in high pressure tactics, harassment or unconscionable conduct in the conduct of an auctioneering practice.
1. Using, or getting a third party to use, threatening or intimidating language or behaviour towards a client or customer.
2. Engaging in conduct that would make an ordinary person feel unwillingly compelled to comply with an auctioneer’s request or demand.
Taking unfair advantage of an auctioneer’s superior bargaining position relative to a client or customer.
Requiring a client or customer to comply with conditions that are not reasonably necessary for the protection of an auctioneer’s legitimate interests.
If it is reasonably apparent that a client or customer can not understand relevant documents, taking unfair advantage of the client’s or customer’s lack of understanding.
Exerting undue influence or pressure on, or using unfair tactics against, a client or customer or a person acting for a client or customer.

12. Conflict of duty or interest
An auctioneer must not accept an appointment to act, or continue to act, as an auctioneer for a client if doing so will place the auctioneer’s duty or interests in conflict with the client’s interests.

13. Soliciting through false or misleading advertisements or communications
An auctioneer must not solicit clients or customers through advertisements or other communications the auctioneer knows are false or misleading.

 
*The Auctioneers Council of Malaysia will continue to uphold professionalism and highlight the plight of the Auctioneers in Malaysia*
2016 All Right Reserved. Majlis Pelelong Malaysia (The Auctiomneers Council of Malaysia)