I am pleased to report the decisions of the Office of the Superintendent of Bankruptcy (OSB) pertaining to the consultation process undertaken by the OSB regarding possible changes to the Canadian bankruptcy and insolvency systems licensing regulatory framework (Licensing Directive). The nine issues addressed are based on the results of the OSB’s extensive consultation process, which included representation by more than 100 representative organizations, interest groups and individuals.
http://www.ic.gc.ca/eic/site/bsf-osb.nsf/eng/br02662.html
The most significant of these issues to all Trustees practicing in the area of consumer insolvency is the decision dealing with who may administer consumer proposals under the Bankruptcy and Insolvency Act (BIA). Currently, only licensed Trustees in Bankruptcy and Administrators under Part X of the BIA may administer formal consumer proposals under this Federal Act. Credit counsellors who administer informal Debt Management Programs (DMP) (which are a far inferior product to consumer proposals) have been lobbying the Federal government to grant them a license as Administrators of consumer proposals (ACP’s). After much consideration, the Superintendent of Bankruptcy has ruled that only those holding a license as a Trustee in Bankruptcy may administer this legal process. Furthermore, the Superintendent recommends that credit counsellors undertake the extensive educational and training program created by the Canadian Association of Insolvency & Restructuring Professionals (CAIRP) and become a licensed Trustee if they wish to participate in this legal process. The Superintendent’s decision validates the importance of the education, experience, code of conduct and professional standards that Trustees in Bankruptcy bring to the table. It further recognizes their importance as a critical player in maintaining the current Canadian insolvency process.