Summary of Changes to Licensing Directive and Policy Documents

Issue 1Footnote 1:
Harmonization of Directive with Memorandum of Understanding (MOU)
Directive No. 13R4, Trustee Licensing, will refer to and reflect the MOU between the Office of the Superintendent of Bankruptcy (OSB) and the Canadian Association of Insolvency and Restructuring Professionals (CAIRP) regarding the trustee training program.
Directive No. 13R4 will eliminate any limits on the time and number of attempts before the Board of Examination and Appendix A will provide some flexibility on the makeup of the Board of Examination by allowing a reduced number of members to sit on it while still maintaining an adequate number of professionals.
Issue 3: Probationary Conditions for Newly Licensed Trustees
Appendix A will clarify the conditions under which the two-year probationary period should be lifted, shortened or extended based on the performance of newly licensed trustees. Trustees will be expected to have worked in the field of insolvency during the 24-month probationary period and the onus will remain on trustees to provide details substantiating that significant work experience was obtained during the 24-month period. Trustees may also be required to undergo a review of their practice conducted by the OSB.
Issue 4: Reactivation of the Licence in the Event of the Trustee's Bankruptcy
A new policy paper entitled "Policy on Reinstating a Licence that has Ceased to be Valid by Reason of the Trustee Becoming Bankrupt" will specify the factors the Superintendent may consider when deciding, on a case-by-case basis, whether to reinstate a licence that has ceased to be valid due to the trustee becoming bankrupt.
Policy on Multi-Jurisdictional Licences
The current Policy on Multi-Jurisdictional Licences will be revised and updated to reflect technical changes, such as section references to Directive No. 13R4, and to delete quotations from the Bankruptcy and Insolvency Act.
Technical Amendments
  • Paragraph 1 will define "Memorandum of Understanding (MOU)";
  • Paragraphs 7 and 8 will replace "of a commercial or an economic nature" with "of a nature that would impair the trustee's capacity to perform his or her fiduciary duties";
  • Paragraph 12(c) will have "or limitation" after "condition";
  • Paragraph 42 will include a reference to the "Policy on Multi-Jurisdictional Licences";
  • Paragraph 65 will be amended to replace "your local OSB office" with "the Assistant Superintendent (Licensing) at the OSB."

Footnotes

  1. 1 See topics listed on the "Review of the Trustee Licensing Regulatory Framework: The Results of the Consultation" web page.(back to footnote reference 1)