Appendix A - Version outlining the modifications
This appendix provides detailed information on the licensing process and is an integral part of Directive No.
13R3 , Trustee Licensing .
A. Process Regarding Issuance of an Individual Trustee Licence 1. In order to obtain an individual trustee licence, a person must meet the prerequisite qualifications set out in paragraph 6 of the Directive.
Professional Designation 2. Examples of relevant professional designations are those relating to accounting, law, business administration, management and finance.
Insolvency Counsellor's Qualification Course 3. Successful completion of the Insolvency Counsellor's Qualification Course is required in order for an individual to qualify to conduct counselling under the Bankruptcy and Insolvency Act. It is also a prerequisite qualification that must be met by an individual who wishes to apply for a trustee licence, as set out in paragraph 6(d) of the Directive. 4. This course provides individuals with the basic skills and knowledge required for delivering counselling to insolvent consumers. The course is intended to ensure that individual debtors will receive professional counselling from qualified people who can assist them in adopting more responsible practices in their financial matters.
National Insolvency Qualification Program 5. By Memorandum of Understanding (MOU), the Superintendent of Bankruptcy and the Canadian Insolvency Practitioners Association (CIPA) have established the National Insolvency Qualification Program (NIQP) as a common qualification system for providers of insolvency and business-recovery services in Canada. 6. The NIQP is a three (3) year joint education process that consists of a body of knowledge, a prescribed course of study, a tutorial, written examinations, the National Insolvency Examination (NIE) and an oral examination before a Board of Examination. 7. Individuals will be allowed ten (10) years from the date of enrolment to complete the NIQP, with no more than three (3) attempts at any examination, including the NIE and the oral board examination. 8. Subject to the transitional provisions and exemptions set out in the MOU, enrolment in and successful completion of the NIQP is compulsory for any individual wishing to become a trustee.
National Insolvency Examination 9. The NIE, held jointly by the Office of the Superintendent of Bankruptcy (OSB) and the CIPA, is the written final examination that individuals must pass. 10. The purpose of the NIE is to assess the technical knowledge of a person wishing to apply for an individual licence. 11. The NIE is held once per year at locations and times determined by the OSB and the CIPA. 12. The NIE consists of two (2) parts, each three (3) hours long. The exam contains questions on bankruptcy and proposals, as well as on receiverships. The examinations are marked by a committee made up of representatives of the OSB and the CIPA. 14. An individual may appeal the examination result, in writing, within thirty (30) days after the date on which the results are sent.
who have passed the NIE will receive an invitation to appear before a Board of Examination for the oral examination. The invitation will include a copy of Form 2
( Application for Trustee Licence (Individual) ), which the applicant will file with the Superintendent.
16. Once Form 2, Application for Trustee Licence (Individual) is filed, the Superintendent verifies that the applicant meets the qualifications set out in the Directive. 17. The Superintendent may require an applicant to provide such additional information and sign such authorization for information as the Superintendent deems appropriate. 18. For example, the Superintendent may require that authorization be given to communicate with a professional organization in order to verify the applicant's good standing. 19. The Superintendent may request an investigation by the Royal Canadian Mounted Police to determine if 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
a credit verification;
(b) a financial evaluation; and
(c) verification of the applicant's employment history and references.
Board of Examination
20. The Board of Examination shall consist of a trustee, a lawyer, a person designated by the Regional Director to act as Assistant Superintendent and a representative of the Superintendent.
The members of the Board may vary from district to district. The trustee examiner is selected by the
CIPA and the lawyer examiner is selected by the Superintendent , with consideration given to 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.
21. Various Boards will meet applicants in several locations across Canada over a period of approximately sixty (60) to ninety (90) days every year. 22. 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.
Decision of the Superintendent 23. The decision of the Superintendent shall be mailed simultaneously to all applicants. 24. 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
25. 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. 26. An applicant may ask to be heard in person by the Superintendent.
A. Licence Subject to Conditions
27. 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
27 (a) above, the newly licensed trustee is authorized to act only in the following cases:
(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.
28. In granting the newly licensed trustee approval to act in the cases described in sub-paragraph 27 (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. 29. The Superintendent may also require that the trustee practise under the direct supervision of an established trustee. 30. 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.
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
31. Where the Superintendent offers a licence with limitations pursuant to paragraph 15 of the Directive, the applicant has thirty (30) days to accept the offer.
B. Process regarding issuance of a corporate trustee licence
33. Form 3, Application for Trustee Licence (Corporation), is filed after the Superintendent has approved the proposed name of the corporate trustee. 33. The requirements as set out in paragraphs 21 (restrictions on the corporation's business) and 23 (private or closed company) of the Directive shall be contained in the constituting documents of the corporation.
C. Process regarding conditions of practise
34. The Superintendent may, from time to time, conduct an inquiry in order to verify that a trustee continues to meet all requirements and qualifications as set out in paragraphs 14 and 26 of the Directive. 35. 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 under paragraphs 16 to 19 of this Appendix.
Designated Trustee 36. An individual trustee who, in accordance with paragraph 30 of the Directive, has been designated by the corporate trustee to be responsible for the administration of a professional engagement shall acknowledge acceptance of the designation in writing to the Designated Senior Bankruptcy Analyst. 37. Where the individual trustee designated by the corporate trustee is to be replaced, the corporate trustee shall forthwith notify the Designated Senior Bankruptcy Analyst of the reason for such replacement and of the name of the newly designated trustee.
38. 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 ).
D. Other General Information
Clarification of Certain Issues 39. If any doubt should arise regarding any issue related to this Directive, the trustee or trustee applicant should obtain clarification from the Superintendent, for example: (a) what is or what is not an incompatible occupation; and (b) what constitutes a state of insolvency.
Superintendent of Bankruptcy