Directive No. 29R3 (Draft for Consultation)

Trustee Designation and Advertising

This document is a draft and is intended solely for the purpose of seeking public comment (June 1- June 30, 2015). Directive No. 29R2, Advertising by Trustees, remains in effect.

Interpretation

  1. In this Directive,
    "Advertise, Advertising or Advertisements"
    means any communication, regardless of the medium, by or on behalf of a trustee promoting services under the Bankruptcy and Insolvency Act (BIA) or other insolvency-related services;
    "Licensed Trustee in Insolvency and Restructuring" (LTIR)
    means a licensed trustee, as defined in section 2 of the BIA, who is not subject to a licence suspension or cancellation;
    "OSB"
    means the Office of the Superintendent of Bankruptcy.

Authority

  1. This Directive is issued pursuant to paragraphs 5(4)(b) and (c) of the BIA.

Purpose

  1. The purpose of this Directive is:
    1. to require use of a professional designation to assist debtors in identifying licensed trustees; and
    2. to prescribe professional standards to which trustees shall adhere when advertising.

Designation

  1. In all communications or representations falling within the purview of a trustee licensed under the BIA, trustees shall identify themselves using the professional designation "Licensed Trustee in Insolvency and Restructuring" or the acronym "LTIR."
  2. Licensed Trustees in Insolvency and Restructuring shall not use other terms alluding to possession of a trustee licence, such as "Trustee in Bankruptcy."
  3. Any person who is not a licensed trustee shall not act as, or represent himself/herself to be, a licensed trustee under the BIA and may be found guilty of an offence in accordance with section 203.1 and paragraph 202(1)(a) of the BIA.

Advertisement of Insolvency-Related Services

  1. Licensed trustees shall use the professional designation "Licensed Trustee in Insolvency and Restructuring" or the acronym "LTIR" in all advertisements directed at, or appearing to solicit, consumer clients.

Record Retention

  1. Licensed Trustees in Insolvency and Restructuring shall retain copies of documents sufficient to demonstrate compliance with the conditions set out in this Directive. Copies of these documents shall be provided to the OSB upon request.

Professional Standards for Advertising

  1. Licensed Trustees in Insolvency and Restructuring shall advertise, whether directly or indirectly, only information that is:
    1. demonstrably true, accurate and verifiable;
    2. not misleading, confusing or deceptive nor likely to mislead, confuse or deceive; and
    3. in the best interests of the public and consistent with a high standard of professionalism.
  2. Licensed Trustees in Insolvency and Restructuring shall not advertise, whether directly or indirectly, any information that:
    1. refers to the trustee as a "specialist" in a specific type of insolvency appointment;
    2. contains an endorsement or statement of gratitude concerning the trustee;
    3. relates to fees and/or disbursements, with the exception of provision of a free preliminary or initial consultation; or
    4. addresses asset realization, contributions or payments of any kind by a debtor.

Coming into Force

The effective date included in the consultation draft posted earlier this year was for illustrative purposes only and has been removed to avoid possible confusion. If you have any questions on trustee designation and advertising, please contact Sheila Westerink Robin.

Enquiries

  1. For any questions pertaining to this Directive, please contact your local OSB office.

William R. James
The Superintendent of Bankruptcy

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