Draft Appendix A
Licensing Process

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This appendix provides detailed information on the licensing process and is an integral part of Directive No. 13R4, Trustee Licensing (the Directive).

A. Process Regarding Issuance of an Individual Trustee Licence

Application

1. After having successfully passed the NIE and ICQC, an individual may apply for a trustee licence using Form 2, Application for Trustee Licence (Individual).

2. Subject to paragraph 11 of the Directive, individuals who have passed the NIE will receive an invitation from the Superintendent to appear before a Board of Examination for the oral examination. The invitation letter will include a copy of Form 2, Application for Trustee Licence (Individual), which the applicant will file with the Superintendent.

Investigation

3. Once Form 2, Application for Trustee Licence (Individual) is filed, the Superintendent verifies that the applicant meets the prerequisite qualifications and other requirements set out in the Directive.

4. The Superintendent may require an applicant to provide any such additional information and sign any such authorization for information as the Superintendent deems appropriate.

5. For example, the Superintendent may require that authorization be given to communicate with a professional organization in order to verify that the applicant remains in good standing.

6. The applicant will provide such consent and authorization as may be necessary where the Superintendent requests an investigation by the Royal Canadian Mounted Police to determine whether the applicant has a criminal record. The Superintendent may also take any other investigative measures that are deemed necessary, including but not limited to:

(a) a bankruptcy search and credit verification;

(b) a financial evaluation; and

(c) verification of the applicant's employment history and references.

Board of Examination

7. The Board of Examination will normally consist of a trustee, a lawyer, a person designated by the Regional Director to act as Assistant Superintendent and a representative of the Superintendent. Where it is not possible or practical to have all four members sit on the Board of Examination, a reduced Board will be permitted, but wherever possible the Board will include both a trustee and a lawyer sitting.

8. The members of the Board may vary from district to district. The trustee examiner is selected by the Superintendent on the recommendation of CAIRP and the lawyer examiner is selected by the Superintendent. The members of the Board are selected upon consideration of the following factors:

(a) that these examiners have a minimum of five (5) years' relevant practical experience in the insolvency field;

(b) the opinion of the Regional Director regarding the competence of these examiners; and

(c) that there is no relationship between the examiner and the applicants that would call into question the impartiality or the fairness of the oral examination process.

9. Various Boards will meet applicants in several locations across Canada over a period of approximately sixty (60) to ninety (90) days every year.

10. The members of each Board shall make a recommendation to the Superintendent for each applicant they have met based on their personal opinions as to the applicant's suitability to become a trustee as demonstrated in the interview.

Superintendent’s Decision Regarding Application for a Trustee Licence

11. The Superintendent’s decision shall be mailed simultaneously to all applicants.

12. Applicants are entitled, upon request made within thirty (30) days, to receive feedback on their performance, as indicated in the comments of the Board members.

Review of the Superintendent's Decision Regarding Application for a Trustee Licence

13. An applicant may ask for a review of the Superintendent's decision provided that a written request stating the grounds therefor is made to the Superintendent within thirty (30) days of receiving the decision.

14. An applicant may ask to be heard in person by the Superintendent.

Licence

A. Licence Subject to Probationary Conditions

15. The following conditions apply to a new licence:

(a) the newly licensed trustee agrees, for a period of twenty-four (24) months, to practise with, and in the same physical location as, an active established trustee who is acceptable to the Superintendent;

(b) that where, at any time during those twenty-four (24) months, the newly licensed trustee does not satisfy the requirement set forth in paragraph 15(a) above, the newly licensed trustee is authorized to act only in the following cases, subject to any other restrictions imposed upon the licence:

(i) consumer proposals;

(ii) summary administration estates;

(iii) estates, known as ordinary administration estates, for which unsecured liabilities, as per the Statement of Affairs, do not exceed $500,000 and for which the realizable assets, as per the Statement of Affairs, after deducting the value of all security interests, do not exceed $15,000; and

(iv) all other cases (notice of intention, Division I Proposal, interim receiver, estates not covered by case (iii) above, etc.), subject to the approval of the Designated Assistant Superintendent and on such terms as the Designated Assistant Superintendent shall determine, considering the performance of the newly licensed trustee.

16. In granting the newly licensed trustee approval to act in the cases described in sub-paragraph 15(b)(iv) of this Appendix, the Designated Assistant Superintendent may require that the newly licensed trustee appoint a sponsor who will provide supervision in the administration of such estates.

17. The Superintendent may also require that the trustee practise under the direct supervision of an established trustee.

18. After the period of time for which the conditions attached to a new licence are imposed, the trustee must, in order to have them removed, request in writing that the Superintendent lift these conditions.

19. Trustees requesting the lifting of the conditions attached to a new licence are:

(a) to have worked in the field of insolvency during the 24-month probationary period;

(b) to provide details substantiating that significant work experience has been obtained during the 24-month period; and

(c) to undergo a review of their practice conducted by the OSB, as required.

20. The Superintendent may lift, modify or maintain the conditions depending on the recommendation of the Designated Assistant Superintendent as to the performance of the trustee.

B. Licence Subject to Limitations

21. Where the Superintendent offers a licence with limitations pursuant to paragraph 13 of the Directive, the applicant has thirty (30) days to accept the offer.

B. Process Regarding Issuance of a Corporate Trustee Licence

Application

22. Form 3, Application for Trustee Licence (Corporation), is filed after the Superintendent has approved the proposed name of the corporate trustee.

23. The requirements as set out in paragraphs 19 and 21 of the Directive shall be contained in the constituting documents of the corporation.

C. Process Regarding Conditions of Practise

Inquiry

24. The Superintendent may, from time to time, conduct an inquiry in order to verify that a trustee continues to meet all requirements set out in the Directive.

25. Within such an inquiry, the Superintendent may require that the trustee provide additional information and documentation, such as the trustee's financial statements. The Superintendent may also conduct any other form of investigation deemed necessary.

Geographical Jurisdiction

26. A trustee may offer services from a location other than the resident office. All locations other than the resident office must be authorized by the Designated Senior Bankruptcy Analyst in accordance with the provisions of Directive No. 28, Non-Resident Office.

Bill James
Superintendent of Bankruptcy