Draft Policy on Multi-Jurisdictional Licences

PDF version
(104 KB, 3 pages)

PDF readers

This document is a draft and should only be used for the purposes of this online consultation.

Date:

A. Purpose

This policy sets out the various elements to be considered in reviewing a trustee's application to extend his or her licence to a province in which he or she does not maintain a resident office, as well as the procedures to follow in dealing with such an application. The policy is intended to ensure consistency in the application of the rules for extending licences to other districts.

B. General Principles

In reviewing a trustee's application, the Superintendent will consider the various elements set out below. He may then grant the extension without conditions, require that certain conditions be met before the extension is granted, or refuse the extension.

If the extension is granted, it will remain at all times conditional on the trustee complying with the requirements set out at the time of the extension.

The extension privilege may be revoked if the trustee fails to meet his/her obligations, or if the trustee’s performance or the quality of the trustee’s administration is no longer satisfactory, either with respect to files opened in the district for which the extension was given or in the district for which the licence was initially issued.

C. Factors to be Considered

The Superintendent will consider factors related to the trustee's knowledge of relevant legislation and performance of professional engagements.

  1. Knowledge of relevant legislation (subsection 39(a) of Directive No.  13R4, Trustee Licensing)
    1. Provincial Legislation

      The trustee must have sufficient knowledge of provincial legislation pertaining to insolvency. While not necessarily exhaustive, the list in Appendix "A" identifies various areas in which the trustee must be very familiar.
    2. Board of Examination

      A trustee who requests that his or her licence be extended from a common law province to a civil law province, or vice versa, will be required to appear before a Board of Examination. The Superintendent may also require that the trustee appear before a Board of Examination where the trustee does not have sufficient knowledge of the applicable legislation in the new province.
  2. The requested extension must not adversely affect the performance of the trustee's professional engagements (subsection 39(b) of Directive No. 13R4, Trustee Licensing). Review of an extension request will include consideration of the following factors:
    1. Trustee compliance and performance, particularly with regard to:
      • the Bankruptcy and Insolvency Act, and the Bankruptcy and Insolvency General Rules;
      • the Superintendent's Directives;
      • the closing of files, the number of files open, and the age of these files;
      • the number and type of complaints against the trustee.
    2. Quality of service provided by the trustee, including:
      • the trustee's facilities and office;
      • access to files;
      • access to the trustee, e.g., assessment in person;
      • access to the trustee's personnel, on-site or not, permanently or occasionally.
    3. Cost of services

      Trustee fees and disbursements claimed against the estate should not be higher by reason of distance from the resident office.
    4. Continuity in the administration of files

      The trustee must conclude a succession agreement in case of death, incapacity or other factors that could prevent the trustee from performing engagements. He or she must ensure at all times that there is a successor for the files being administered. This criterion is mandatory in view of the risks inherent in leaving estate files without a trustee.

      With the exception of the succession agreement, no one criteria set out above will be determinant. Each case will be considered on its merits based on the entire set of circumstances.

D. Conditions for Issuing an Extension

Before being granted an extension, the trustee must commit in writing:

  1. to maintain satisfactory performance and the same level of service as that which was represented to the Superintendent when he or she applied for the licence extension;
  2. to submit to the Superintendent for prior approval
    1. any significant change in the level of service that he or she represented to the Superintendent;
    2. any significant change in the succession agreement.

E. Process

  • The trustee makes an application in writing demonstrating that he/she meets the requirements of this policy.
  • A copy of the succession agreement(s) for the files he or she administers is attached to the application.
  • The entire application is reviewed by the Assistant Superintendent (Licensing) in consultation with the Designated Assistant Superintendent (DAS).
  • The Assistant Superintendent (Licensing) makes a recommendation and forwards it to the Superintendent of Bankruptcy for a decision.
  • This recommendation is not binding on the Superintendent.

Appendix "A"

The trustee should have general knowledge as to the application of relevant provincial legislation in a bankruptcy situation. Generally, the trustee should be very familiar with the following areas of provincial legislation:

  • Bulk Sales
  • Business corporation
  • Conditional Sales
  • Construction Lien
  • Credit Reporting
  • Employment Standards
  • Execution (or Exemptions)
  • Family Law
  • Fraudulent Conveyances
  • Landlord and Tenant
  • Mortgages
  • Partition
  • Partnership
  • Pension Benefit
  • Personal Property Security
  • Provincial Taxes
  • Repair and Storage Liens
  • Sale of Goods
  • Workers' Compensation