Licensed Insolvency Trustees
The OSB, Superintendent of Bankruptcy in Canada after years of deliberation with industry stakeholders has released the Directive 33. OSB Canada – Designation and Advertising Directive. Designed to improve, protect and clarify the muddy waters for consumers seeking debt reduction solutions. OSB Protecting the Public
Moving forward into 2016 Insolvency professionals previously known as Trustees in Bankruptcy will be called Licensed Insolvency Trustees. Providing the exact same services with just a new package and new designation and name. As of April 2016 bankruptcy trustees can no longer call themselves bankruptcy trustees and they can only advertise their new designation Licensed Insolvency Trustee or LIT.
Essentially the OSB is mandating a complete re-branding of the entire industry. A costly, complex and lengthy endeavor which will be absorbed by individual trustees and firms. Those same firms and trustees which are financially controlled by an OSB with regulated fee structure that has not received an increase in a decade.
While the industry is re-branding itself, it seems it will be open to attack by its competition. The new Directive 33 has basically dropped the name and designation of Bankruptcy Trustee. Does this mean that anyone can now call themselves a bankruptcy trustee? There appears to be no way to prevent this in the current directive.
How is that protecting the public or clarifying the industry? It begs the question, how long before all those that provide predatory debt reduction services start to advertise as a bankruptcy trustees?
Perhaps instead of playing the name game, why not address the cause? Federally legislate regulations to go after the unscrupulous players in the industry who are continuously preying on indebted consumers.