January 19, 2021
The Office of the Superintendent of Bankruptcy (OSB) is proposing changes to the provisions around electronic fund transfers (EFT). Provisions related to EFT require remittance information to go through the Canadian Payments System. This process has proven to be impractical for many Licensed Insolvency Trustees (LIT).
To address this issue, the OSB proposes to:
1) Expand the definition of “electronic payment” to
- allow LITs to make or receive payments electronically in general, excluding payments to the OSB for filing fees and levy; and
- remove the requirement to make an application to the Superintendent, in writing, for approval to make electronic payments in lieu of using signed printed cheques; and
2) Amend the requirements surrounding the transmittal of remittance and payment information, which will allow trustees to remit this information directly to the creditor/recipient.
Please visit our website for more details.
Comments on the draft amendments are invited until February 19, 2021. Please send your comments to Sheila Westerink Robin, National Manager, Policy and Regulatory Affairs, at firstname.lastname@example.org.