Notice to LITs: Directive No. 13R8, Trustee Licensing

December 12, 2023

The Office of the Superintendent of Bankruptcy (OSB) has amended Directive No. 13R7, Trustee Licensing, to require Licensed Insolvency Trustees (LIT) to complete the Trustee Annual Report (TAR) on an annual basis. The TAR collects information on LIT business models and practices. This information will better inform the OSB's oversight activities and help reduce the administrative burden of LITs, particularly during Trustee Office Visits.

Completion of the TAR, via the OSB Licence Administration Application (OLAA), is a requirement in order to renew an LIT licence by the annual deadline of December 31, 2023.

Several other amendments were also made to Directive No. 13R7 to strengthen the OSB’s licensing regime, including the introduction of the following requirements:  

  • Prior approval of the Superintendent is now required when changes are made to the corporate LIT’s shareholders, or when changes to the corporate structure of corporate LITs are pursued;
  • Corporate LITs are now required to have an alternate Trustee in Charge and a continuity plan;
  • Sole proprietors are now required to have a succession plan or a continuity plan; and
  • LITs are now required to complete twenty (20) hours of professional development annually.

For further details, please read the Directive and visit the TAR webpage. Should you have any inquiries, please contact the Licensing Team at osblicencebsf-bkhq@ised-isde.gc.ca.