Directive No. 28R, Non-Resident Office
To: Licensed Insolvency Trustees
Subject: Directive No. 28R, Non-Resident Office
Amendments to Directive No. 28, Non-Resident Office
The Office of the Superintendent of Bankruptcy has amended Directive No. 28:
- References to two directives that have been updated (Directive No. 13R6 and Directive No. 33) were replaced;
- The word “Trustee” was changed to “licensed insolvency trustee” in keeping with Directive No. 33; and
- French terminology in paragraph 6 was corrected from “corporations” to “personnes morales”.
- Paragraph 4 has been amended to specify that applications for non-resident offices are made through the OSB Licence Administration Application; and paragraph 5 has been removed.
Coming into Force
The Directive No. 28R, Non-Resident Office, comes into force on the date it is issued.
Superintendent of Bankruptcy
(Supersedes Directive No. 28 issued on August 14, 2009, on the same topic.)
- In this Directive,
- "Act" means the Bankruptcy and Insolvency Act;
- "Licensed Insolvency Trustee" (LIT) means a trustee or licensed trustee, as defined in section 2 of the BIA;
- "non-resident office" means an office that is in operation and where there is no individual trustee on the premises on a full-time basis;
- "OLAA" means the OSB License Administration Application;
- "OSB" means the Office of the Superintendent of Bankruptcy;
- "resident office" means the principle place of business from which the trustee normally practises.
Authority and Purpose
- This Directive is issued pursuant to the authority of paragraphs 5(4)(b) and (c) of the Act.
- The purpose of this Directive is to outline the position of the Superintendent regarding the use and operation of a non-resident office by LITs.
- If an LIT wishes to operate out of a location other than his or her resident office, he or she must apply through OLAA for the registration of the non-resident office.
- This application shall meet the requirements of Directive No. 13R6, Trustee Licensing, relating to individuals or corporations.
- The responsibility for authorizing the registration of a non-resident office rests with the designated Senior Bankruptcy Analyst.
- To authorize the operation of a non-resident office where the LIT does not maintain any staff but provides professional services on a regular basis, the designated Senior Bankruptcy Analyst must be satisfied that:
- (a) the LIT has adequate facilities to receive the public, to conduct interviews and to hold meetings of creditors; and
- (b) all files are kept in the LIT's resident office.
- To authorize the operation of a non-resident office where the LIT maintains his or her own staff, the designated Senior Bankruptcy Analyst must be satisfied that:
- (a) the LIT has adequate facilities to receive the public, to conduct interviews and to hold meetings of creditors;
- (b) there are proper internal controls over the operation of the non-resident office;
- (c) if there is more than one LIT in the resident office, one specific LIT is identified as the LIT responsible for the non-resident office;
- (d) there is proper supervision of estates and the books, records and documents relating to the administration of estates by the LIT in charge of the non-resident office;
- (e) an LIT will personally attend the non-resident office on a periodic basis;
- (f) the maintenance of the files in the non-resident office will not adversely affect the administration of estates; and
- (g) the administration of an estate from the non-resident office does not cause additional costs for an estate.
- An LIT may advertise the existence of the non-resident locations but this advertisement must be in accordance with the provisions of Directive No. 33, Trustee Designation and Advertising.
- Before registering a non-resident office pursuant to paragraphs 7 or 8 of this Directive, the designated Senior Bankruptcy Analyst will consider the overall performance of an LIT in the administration of his or her estates.
- If the designated Assistant Superintendent is not satisfied with the LIT's overall performance in the administration of his or her estates, he or she may refuse the application for the registration of a non-resident office.
- If the designated Assistant Superintendent is not satisfied with the LIT's professional services provided in a non-resident office, he or she may cancel the registration of an existing non-resident office.
- If the designated Assistant Superintendent takes any measure under paragraphs 11 or 12 of this Directive, an LIT affected by such measure may make representations to the Superintendent.
Coming into Force
- This Directive comes into force on the date it is issued.
- For any questions pertaining to this Directive, please contact your local OSB office.
Superintendent of Bankruptcy
The HTML version of this Directive is not the official version. In the event of an inconsistency between the HTML and PDF versions of this Directive, the PDF version prevails. Users are required to exercise due diligence with respect to the HTML version.
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