This document provides additional information for trustees regarding revisions in the final Directive arising from analysis of input received through public consultation.
Q: Why have the words “and restructuring” not been retained in the final designation?
A: The professional designation “Licensed Insolvency Trustee” most accurately reflects the scope of the licence and authorities granted by the Superintendent of Bankruptcy under the Bankruptcy and Insolvency Act. Restructuring services may include a range of informal consumer or corporate activities which are not prescribed in legislation or subject to regulatory supervision, review and monitoring. The designation is intended to avoid potential confusion regarding the scope of a trustee’s licence and the related regulatory oversight, including restructuring activities beyond those pertaining to formal insolvency proceedings.
In addition, a short designation will lend itself to being more easily recognized and retained by the general public, while still achieving the desired regulatory policy objectives.
Q: Why are business cards subject to the Directive?
A: Business cards are a very common means of representation used by licensed trustees to convey insolvency qualifications, and as such, are similar to other forms of communication covered by the Directive. Insolvency qualifications have been represented in various forms and to varying extents across the industry and within individual firms. A lack of consistency in the application of the new requirements could compromise the regulatory objective of achieving transparency and ease of public identification of a licensed insolvency professional.
An exception to the application of the Directive is provided for where trustees do not use a business card to represent themselves as insolvency professionals. For example, the business card of the Managing Director of a large multi-service firm, who is also a licensed trustee, would not be subject to the Directive provided that he or she does not include insolvency-related qualifications on their business card.
Q: Why is a consent agreement with the Superintendent required before a licensed trustee can use the professional designation?
A:The professional designation “Licensed Insolvency Trustee” has been adopted and is used as intellectual property of the Superintendent of Bankruptcy. A request for public notice of the use of the designation as an Official Mark pursuant to the Trade-marks Act has also been made. As such, the professional designation may only be used in accordance with the Directive, and is subject to the terms of the Consent Agreement provided on the OSB’s website. The Consent Agreement is to be submitted to the Superintendent prior to use of the professional designation. This will assist the Superintendent in addressing cases of unauthorized use of the professional designation.