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 Bankruptcy
Trustees in Bankruptcy
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 How to Become a Trustee?One of the main duties of the Superintendent of Bankruptcy is to review applications for trustee licences under the Bankruptcy and Insolvency Act (BIA) and to issue licences to persons who meet the criteria set forth in the Licensing Directive. The following describes those criteria.PrerequisitesThe process that an individual must follow in order to become a trustee in bankruptcy begins several years before the final decision to issue a licence is made by the Superintendent.In order to be eligible for a trustee licence, the candidate must have either a Canadian university degree or its equivalent, or a minimum of five years of relevant work experience. An individual who holds a relevant professional designation recognized in Canada is also eligible. The individual must have successfully completed the National Insolvency Qualification Program (NIQP), a three-year course administered jointly by the Office of the Superintendent of Bankruptcy (OSB) and the Canadian Association of Insolvency and Restructuring Professionals (CAIRP), a private sector professional association of which the majority of Canadian bankruptcy trustees are members. The course culminates in a written examination known as the National Insolvency Examination (NIE), which the individual must pass in order to be invited to take the Oral Examination. For more details on the program and the examination, contact CAIRP . Another prerequisite for obtaining a trustee licence is the BIA Insolvency Counsellor’s Qualification Course, a program which is deemed to be essential training for all future trustees. In addition, the individual may not be an insolvent person (as defined by the BIA), nor may he or she have been bankrupt or under insolvency proceedings at any time during the five years prior to applying for a trustee licence. And finally, a candidate who is already a member of a professional organization must be in good standing and not be subject to any current disciplinary action by that organization. The Superintendent’s powers of investigation provide for verifying that the individual does in fact meet all of the prerequisites. For example, a search of Canada’s bankruptcy and insolvency estates database will normally be carried out to ensure that he or she has not been listed in the last five years. It should be borne in mind that meeting the prerequisites does not in itself ensure that a trustee licence will be granted. The individual must still meet a number of Specific Qualificationsand pass an Oral Board Examination before the final decision is made with regard to the issuance of a trustee licence. Specific QualificationsAn applicant who meets the Prerequisites outlined above will be evaluated in terms of his or her reputation and suitability as a trustee.Reputation The applicant’s reputation is determined based on information he or she provides and any other information of which the Superintendent or the Licensing Section may become aware. In general, an applicant must be of good character and reputation, and must satisfy the Superintendent that the issuance of a licence will not erode public confidence in the insolvency process. Specific elements to be verified include whether the applicant has a criminal record for which no pardon has been granted, or any convictions for criminal offences of a commercial or economic nature. Any previous sanctions imposed for professional misconduct will also be taken into account, particularly where that misconduct was of a commercial or economic nature. Suitability The suitability of an individual to become a trustee will be the main focus of the Oral Examination, which is held by the OSB once a year. Suitability includes the applicant’s skills and abilities, as well as his or her understanding, judgment, ethical standards, professionalism and discernable experience. |
