Resources for Trustees
Become a Trustee

• Prerequisite Qualifications
• Specific Qualifications

One of the main duties of the Superintendent of Bankruptcy is to review applications for trustee licences under the Bankruptcy and Insolvency Act (BIA) and to issue licences. The Superintendent can issue a licence to those who meet prerequisite and specific qualifications, as described in Directive No. 13R2, Trustee Licensing.

Prerequisite Qualifications

Studies

To be eligible for a trustee licence, the candidate must have either a Canadian university degree or its equivalent, or a minimum of five years of relevant work experience. An individual who holds a relevant professional designation recognized in Canada is also eligible.

Certification

The individual must have successfully completed the Canadian Association of Insolvency and Restructuring Professionals websiteChartered Insolvency and Restructuring Professional Qualification Program, also known as the CIRP Qualification Program (CQP). The course is administered by the Canadian Association of Insolvency and Restructuring Professionals (CAIRP), a private sector professional association of which the majority of Canadian bankruptcy trustees are members. The course culminates in a written examination known as the National Insolvency Examination (NIE), which the individual must pass to be invited to take the Oral Examination. For more details on the program and the examination, contact Canadian Association of Insolvency and Restructuring Professionals websiteCAIRP.

Another prerequisite for obtaining a trustee licence is the BIA Insolvency Counsellor’s Qualification Course, a CAIRP program deemed to be essential training for all future trustees. In addition, the individual may not be an insolvent person (as defined by the BIA), nor have been bankrupt or undergone insolvency proceedings at any time during the five years prior to applying for a trustee licence. Finally, a candidate who is already a member of a professional organization must be in good standing with and not be subject to any current disciplinary action by that organization.

Validation of prerequisites

The Superintendent’s powers of investigation provide for verifying that the individual does in fact meet all of the prerequisites. For example, a search of Bankruptcy and Insolvency Records will normally be carried out to ensure that the individual has not been listed in the last five years.

It should be borne in mind that meeting the prerequisites does not in itself ensure that a trustee licence will be granted. The individual must still meet a number of specific qualifications (listed below) and pass an Oral Board Examination before the final decision is made with regard to issuance of a trustee licence.

Specific Qualifications

An applicant who meets the prerequisites outlined above will be evaluated in terms of his/her reputation and suitability as a trustee.

Reputation

The applicant’s reputation is determined based on information he/she provides and any other information of which the Superintendent or the Licensing Section may become aware. In general, an applicant must be of good character and reputation, and must satisfy the Superintendent that issuance of a licence will not erode public confidence in the insolvency process. Specific elements to be verified include whether the applicant has a criminal record for which no pardon has been granted, or any convictions for criminal offences of a commercial or economic nature that, in the Superintendent’s opinion, would impair the trustee’s capacity to perform his/her fiduciary duties. Any previous sanctions imposed for professional misconduct will also be taken into account, particularly where that misconduct was of a commercial or economic nature.

Suitability

Suitability of an individual to become a trustee will be the main focus of the Oral Examination, which is held by the Office of the Superintendent of Bankruptcy once a year. Suitability includes the applicant’s skills and abilities, as well as his/her understanding, judgment, ethical standards, professionalism and discernible experience.