Licensed Insolvency Trustees: The Canadian Regulatory Regime

Licensed insolvency trustees (“LITs”) are essential to our economy, guiding debtors through the insolvency process to their financial fresh start, while at the same time returning funds to creditors. As they redeploy both debtors and assets into the economy, LITs are highly regulated. After almost a century of this regulation, this book is the first to provide a comprehensive and practical guide to the regulatory regime.

Licensed Insolvency Trustees: The Canadian Regulatory Regime by Mark Taggart draws upon historical, judicial, legislative, and regulatory resources to provide a sole source of information regarding the regulation of LITs under both the Bankruptcy and Insolvency Act and the Companies’ Creditors Arrangement Act.

This new publication covers everything from the licensing process, including requirements and permitted engagements, to professional conduct processes, conservatory measures, investigation procedures, and the range of potential sanctions that LITs may face. It is intended to provide detailed regulatory information for LITs, their counsel, and stakeholders appearing before regulatory bodies or courts.

Who Will Benefit From This Book
LITs and their counsel will learn:

• How to ensure that they get paid
• What behaviours will attract the attention or intervention of the regulator
• The processes by which licences are granted, suspended, and cancelled
• The various regulatory, civil, and criminal venues in which LIT conduct may be addressed
• The regulatory guidance available, both binding and non-binding

Creditors and other stakeholders will learn:

• How, when, and to whom a complaint about LIT conduct may be made
• The remedies available
• What information is public, and how to obtain it

Regulators and adjudicators will learn:

• Case law and other regulatory guidance that, until now, could never be found in one location
• The toolkit available to them to help maintain the integrity of Canada’s insolvency system

Who Should Read This Book

• Licensed insolvency trustees – to help ensure they get paid for services rendered and avoid issues with their regulator that could cause practice disruptions, so they can focus on the profitability of their practices
• Regulatory staff – to assist with licensing, professional conduct matters, and interventions in court to address LIT conduct, including fee reductions
• Judges, registrars in bankruptcy and those working on professional conduct hearings – to provide guidance when representing or dealing with debtors, LITs, and creditors before regulatory bodies or the courts
• Creditors – to understand the LIT’s obligations and how to enforce compliance with those obligations to ensure efficient and timely debt recovery
• Anyone wishing to challenge LIT fees or have them approved – to help establish what is appropriate conduct from an LIT and how to challenge LIT fees and conduct
• Private sector and government stakeholders in the Caribbean Region – as a guide to legislation based on the Canadian LIT regulatory regime, which has already been adopted by many Caribbean states