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![Bankruptcy Bankruptcy](/web/20060216121546im_/http://strategis.ic.gc.ca/epic/internet/inbsf-osb.nsf/vwimages/OSB_banner_E.jpg/$file/OSB_banner_E.jpg)
Process For Decisions Affecting a Trustee's Licence Under Sections 14.01 and 14.02 of the Act
Preamble
The process by which the conduct of bankruptcy trustees is
monitored and sanctioned is a federal
administrative power subject to judicial review by the Federal
Court.
It is the exercise by a federal board - in this case, the
Superintendent of Bankruptcy - of a decisional power
granted by a federal Act and whose decisions are subject to the Federal Court
Act and the Rules of the
Federal Court. This is specifically provided for in subsection 14.02(5) of the
Bankruptcy and Insolvency Act
(the Act).
This document describes the procedures followed by the
Office of the Superintendent of Bankruptcy in
conducting an inquiry into the activities of a bankruptcy trustee, as well as
the decisional process followed
in the application of sections 14.01 and 14.02 of the Act.
Objectives
- The objectives of this process are to:
- maintain the confidence of the stakeholders and the
general public in the integrity of the bankruptcy
and insolvency system;
- ensure that the process is carried out in an efficient and
transparent manner;
- ensure that it is conducted in compliance with the legal
obligations provided for under the Act, the
General Rules, the Directives issued by the Superintendent of Bankruptcy, the
Charter of Rights and
Freedoms and the rules of administrative law;
- ensure that standards are applied consistently.
Definition
- For the purposes of this process, all references to the
Superintendent mean the Superintendent of
Bankruptcy or the individual delegated to hear the matter pursuant to
subsection 14.01(2) of the Act.
Investigation
- When the Deputy Superintendent (Programs, Standards &
Regulatory Affairs) has reasonable
grounds to believe that a trustee has conducted himself or herself in such a
way that could lead to
licensing sanctions, the file is assigned to a Senior Analyst, Disciplinary
Affairs for the conduct of an
investigation pursuant to section 14.01 of the Act.
- The Senior Analyst, Disciplinary Affairs informs the
trustee in writing that he or she is under
investigation.
- If, after conducting an appropriate investigation, the Senior Analyst,
Disciplinary Affairs determines
that the allegations against the trustee are not well-founded, the file is
closed and the trustee is
advised accordingly.
- If subsequent to an investigation, the Senior
Analyst, Disciplinary Affairs is of the opinion that the
trustee has acted inappropriately and that licensing sanctions would be
justified, he sends a report
to the Superintendent and the trustee. The report constitutes the notice
provided for in subsection
14.02(1) of the Act; it provides the reasons leading the Senior Analyst,
Disciplinary Affairs, to
recommend that the Superintendent exercise his powers under subsection
14.01(1).
- The specific sanction
that will be sought against the trustee is not included in the notice of
subsection 14.02(1); it is forwarded to the trustee at the same time as this
notice, but under
separate cover. This specific recommendation for sanctions will only be
communicated to the
Superintendent at the time of the hearing or, at the request of the
Superintendent, before the
hearing, but in the presence of all parties or their
representative.
- Unless there is consent from the parties or the
Superintendent issues an order to the contrary,
a trustee wishing to object in writing to all or part of the report must
forward his or her written
objection to the Superintendent with a copy to the Senior Analyst, Disciplinary
Affairs at least thirty
(30) days before the hearing.
- Unless there is consent from the parties or the
Superintendent issues an order to the contrary,
any written evidence or exhibit that the parties intend to use is deemed
inadmissible as evidence
unless it has been forwarded to the Superintendent and the other parties at
least thirty (30) days
before the hearing. This requirement is not applicable to rebuttal
evidence.
- Subject to paragraph 5(e), the Senior Analyst, Disciplinary
Affairs may submit to the
Superintendent all relevant facts or evidence, whether or not they are
contained in the report
initially sent to the Superintendent.
Hearing
- After consulting with the parties, the Superintendent
decides where the hearing will take place, giving
particular consideration to the following:
- where the trustee's main office is located;
- where the witnesses
reside;
- where the files giving rise to the report were filed;
- the consent of the parties.
- A notice of hearing is forwarded to the parties and
posted in each Division Office of the Superintendent
of Bankruptcy; the notice provides the names of the parties, and the location,
date and time of the
hearing.
- Subject to the exceptions provided for in subsection
14.02(3) of the Act, the hearing is public.
Hearing Record
- The record of hearing provided for in subsection 14.02(3)
of the Act commences when the
Superintendent receives the notice provided for in subsection 14.02(1) (the
report), from the Senior
Analyst.
- The record of hearing is composed of this notice, the
summary of oral evidence, and the documentary
evidence received by the Superintendent. It also includes the interlocutory
decisions rendered during
the course of the process.
- The record of hearing
is public.
Procedures At Hearing
- The Superintendent has the power to administer oaths; is
not bound by any legal or technical rules of
evidence; shall deal with the matter as informally and expeditiously as the
circumstances permit and
in accordance with the principles of fairness; and shall cause a summary of any
oral evidence to be
made in writing.
Decision
- The decision of the Superintendent together with the
reasons shall therefore, be given in writing to the
trustee not later than three months from the conclusion of the
hearing.
- The decision of the Superintendent is public. It is published in
accordance with the Policy on Publicizing
Professional Conduct Matters.
Judicial Review
- The decision of the Superintendent is deemed to be a
decision of a federal board and as such, may be
reviewed and set aside pursuant to the Federal Court Act.
Hearing Records Registry
- The hearing records registry is the depository of the
records of hearings.
- The hearing records registry publishes the notices of
hearings and forwards them to the parties.
- The hearing records registry
ensures that decisions are published in accordance with the Policy on
Publicizing Professional Conduct Matters.
- The hearing records registry is located in the offices of
the Superintendent of Bankruptcy at:
Office of the Superintendent of Bankruptcy Jean Edmonds Tower South 365 Laurier Avenue West 8th Floor Ottawa, Ontario K1A 0C8 Tel: (613) 941-2691 Fax: (613) 946-9205 E-mail: cousineau.vivian@ic.gc.ca
Coming Into Force
- This process will be applied to all files, pending or
future, starting September 1st, 2001.
July 12th, 2001
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