Conditions for jurisdiction extensions and update on licensing requests

November 17, 2023

Licence Conditions for Jurisdiction Extensions

This is to inform Licence Insolvency Trustees (LITs) that when requesting a jurisdiction extension, the following conditions must be agreed to in writing: 

  • Meeting the prerequisite requirements for an Individual Licence and/or Corporate Licence as set out in Directive 13R7, Trustee Licensing, including, but not limited to, paragraphs 5 to 10, 29, 30 and 31 to 41.
  • Accepting insolvency files and acting as a Licensed Insolvency Trustee only in jurisdiction(s) authorized by the Superintendent as indicated on their licence and being legally permitted to do business in the jurisdiction in accordance with the Canada Business Corporations Act or a provincial equivalent.
  • Always offering to provide services, including but not limited to the assessment, in person and providing such services in accordance with the debtor’s choice.
  • Ensuring fees are not higher due to the distance of a debtor from a resident office.

This is in addition to the existing Requirements for extending or transferring a Licensed Insolvency Trustee (LIT) licence for all LITs, and any additional conditions which may be applicable to some LITs such as the types of estates they may administer and supervisory conditions.

An LIT who fails to comply with any of the above conditions may have their licence and/or any extension of their licence suspended or cancelled by the Superintendent pursuant to paragraph 13.2(5)(b) of the Bankruptcy and Insolvency Act.

Important Update and Reminder

The Office of the Superintendent of Bankruptcy (OSB)’s Licensing Team is currently administering an unprecedented number of requests, including a backlog of requests that had been on hold since December 2022 due to concerns related to the Debt Advisory Marketplace. The team is also currently focused on the annual licence renewal exercise including the integration of the Trustee Annual Report.

While the Licensing team continues to diligently respond to licensing requests and work through the backlog, we ask LITs to please provide notice of any proposed changes as early as possible. Providing the Licensing Team as much advance notice as possible for proposed changes is recommended, in particular for corporate structure changes requiring Superintendent prior approval. We will keep all information confidential so there is no reason to wait. We also ask LITs to be detailed and complete when responding to the OSB’s follow-up questions on their requests to help expedite the review and approval process.

Please note some process improvements are underway in Licensing, including the development and publication of checklists and guidance for licensing requests. Additional capacity is being added to the team along with a triage approach to help prioritize the most time-sensitive requests. The Licensing Team is doing everything they can to process licensing requests and very much appreciates your patience and understanding.