Report on 2020-21 Business Plan Priorities

Contents

Message from the Superintendent

2020-21 Highlights

Business Priorities

1. Comprehensive Regulatory Review
2. Strengthening the OSB’s Compliance Framework
3. Registrars Conference
4. Helping Canadians: Finding the Right Debt Solution
5. Helping Canadians: Engaging Stakeholders on the Debt Advisory Marketplace
6. Operational Training

Ongoing Activities

• Providing Insolvency Information to Canadians
• Internal Services Enhancements

Looking Ahead

Message from the Superintendent

I am pleased to share with all Canadians the Office of the Superintendent of Bankruptcy (OSB) Report on 2020-21 Business Plan Priorities.

This report summarizes the OSB’s achievements against its priorities for 2020-21 and highlights its continued progress towards improving and modernizing the insolvency system on behalf of Canadians.

Over the past year, the OSB continued to fulfill its mandate and advance its priorities while addressing the challenges resulting from the COVID-19 pandemic.

Significant efforts were made to obtain court orders in all Canadian provinces and territories, on behalf of more than 500,000 insolvency estates, to provide relief to debtors and businesses that have filed for insolvency and to provide them with greater flexibility to meet their obligations under the Bankruptcy and Insolvency Act (BIA). Throughout the pandemic, ongoing guidance was provided to Licensed Insolvency Trustees (LITs). In addition, the OSB actively participated in various key meetings, including a presentation to the House of Commons Standing Committee on Finance, to share information on the Canadian insolvency system, like the impact of the pandemic. The OSB also participated in round table discussions with key stakeholders, the broader department of Innovation, Science and Economic Development (ISED), and the Department of Finance, on the readiness of the Canadian insolvency system to meet the challenges of the pandemic and beyond. The OSB also engaged regularly with international colleagues, both directly and through the International Association of Insolvency Regulators to share best practices, track trends and advance important common objectives such as diversity and inclusion in the insolvency profession.

Furthermore, the OSB has advanced its priorities for 2020-21, seeking to modernize the regulatory framework and help Canadians find the right debt solution. To this end, a consultation paper was released to invite stakeholders to submit proposals for improvements to the insolvency system. A virtual conference was held for Registrars, which resulted in productive and useful discussions on insolvency-related topics of national interest, and the OSB made significant improvements to its debtor and LIT compliance programs. Research to better understand the pathways Canadians take to arrive at debt solutions was also conducted to support enhancements to the OSB’s debt solutions portal.

Mindful of the importance of maintaining a respectful, healthy, diverse and inclusive workplace for its employees, the OSB also enhanced its recruitment, talent management and operational training practices, thereby supporting organizational excellence, one of OSB’s strategic objectives.

I am proud of the resilience and hard work of OSB employees, who have demonstrated dedication and perseverance throughout the pandemic. They maintained business operations and balanced personal responsibilities while working from home. As always, I am thankful for the exceptional commitment and professionalism of my team and the stakeholders in achieving significant results for the insolvency system and Canadians. Please read on for additional details on the OSB’s accomplishments in 2020-2021.

Elisabeth Lang
Superintendent of Bankruptcy

2020-21 Highlights

The OSB contributes to an efficient marketplace by maintaining the integrity of the Canadian insolvency system, thereby strengthening confidence in the Canadian economy. Its operational activities are essential in the delivery of its mandate and are key in achieving results for the benefit of the insolvency system. Here are some highlights.

Program Policy and Regulatory Affairs

The OSB:

• Promoted physical distancing and health and safety measures during the pandemic by offering the option to provide remote service delivery beginning March 13, 2020;
• Amended the Estate Funds and Banking directive to allow electronic signatures for bank reconciliations and to facilitate electronic fund transfers;
• Issued Directive No. 13R7, Trustee Licensing, to clarify who may be a director and an officer of a corporate trustee and to confirm the requirements for good character and corporate trustees;
• Issued Guidance to LITs regarding the Canada Recovery Benefits Act;
• Provided guidance to assist with the interpretation and application of the Omnibus court orders obtained in response to the COVID-19 pandemic;
• Released a new integrated Insolvency Counsellor registration tool in the OSB License Administration Application to reduce the administrative burden on LITs; and
• Implemented, in collaboration with the Canadian Association of Insolvency and Restructuring Professionals and in support of the representativeness in the LIT Profession efforts, a self-identification data collection process for LITs, Chartered Insolvency and Restructuring Professional Qualification Program candidates, Insolvency Administration students, and Practical Course on Insolvency Counselling students.

Licensing

The OSB:

• Granted 25 new Trustee licenses as part of the 2020 Oral Board of Examination;
• Renewed licenses for 1,209 Trustee professionals (corporate and individual); and
• Administered 2,124 service requests from LITs, ensuring that they continue to meet the requirements of the regulatory framework.

Licensed Insolvency Trustee Compliance

The OSB:

• Developed a new process for conducting remote LIT Office Visits (LITOV) to adapt to the restrictions of the COVID-19 pandemic:
• Conducted 121 remote LITOVs to validate compliance with insolvency legislation.
• Initiated more than 200 compliance actions to address non-compliance by 43 LITs:
• Issued 1,000 negative letters of comment in instances where the LIT was deemed to not have adequately performed his/her duties in completing a final statement of receipts and disbursements, and therefore caused a monetary loss to creditors or affected the rights of stakeholders; and
• Put conservatory measures in place to protect trust account funds for approximately 100 estates.

Debtor Compliance

The OSB:

• Developed a new process to conduct remote debtor examinations to adapt to COVID-19 pandemic restrictions;
• Undertook 371 examinations of debtors for whom a bankruptcy or proposal was filed to obtain information under oath with regard to their conduct, the causes of the insolvency, the disposition of their property, and any other relevant subjects, as appropriate:
• Carried out 157 court interventions to remedy non-compliant behavior by debtors; and
• Submitted 39 new Superintendent investigation orders, either for internal investigation or to the Royal Canadian Mounted Police.

Creditor Compliance

The OSB:

• Observed that in 2020, 8% of the complaints were against creditors:
• Over 30% of the complaints against creditors warranted a compliance intervention, using cease and desist letters, representing 13% of all complaint interventions; and
• Over 60% of the complaints against creditors were related to a failure to respect the stay of proceedings, while 36% were related to an attempt to ascertain that the debt was not dischargeable.

Statutory Complaints

The OSB:

• Registered 1,028 complaints, a decrease of 10% from the previous year, representing 1.14% of insolvencies filed in 2020-21:
• Acknowledged 98% of complaints received within 5 days; and
• Responded to 73% of complaints received within 30 days.

Consumer Protection and Insolvency Information

The OSB:

• Accepted 89,955 insolvency filings;
• Recorded 61 filings under the Companies' Creditors Arrangement Act (CCAA);
• Responded to 18,062 enquiries about the insolvency system:
• Handled 96% of enquiries received within 5 days;
• Published monthly, quarterly, and annual insolvency statistics on its website;
• Completed 114 external requests for insolvency data; and
• Monitored its website traffic, including the views of its three most visited web pages:

1. Home Page (167,423);
2. Insolvency Counselling Program (110,526); and
3. CCAA Record List (104,923).

Business Priorities

The OSB’s business priorities are aligned with its strategic objectives of engagement, compliance, and organizational excellence, and support its efforts toward modernizing Canada’s insolvency system and contributing to the efficiency of the Canadian marketplace. Undertaken as short-term or multi-year projects, OSB’s business priorities are planned and implemented to enhance program delivery and results. Below is a summary of the 2020-21 accomplishments.

Strategic Objectives

Description

The graphic shows three coloured symbols representing OSB’s strategic objectives. Engagement is represented by a yellow symbol, compliance is represented by a purple symbol, and organizational excellence by a teal symbol.

Engagement

Increasing engagement with stakeholders, including meaningful consultations, will help the OSB pull the right players together in order to achieve significant results for the benefit of Canadians.

Compliance

The OSB has an important compliance mandate that it must fulfill effectively. To ensure compliance from all those it regulates, the OSB will use its full range of compliance and enforcement tools in a meaningful and effective manner.

Organizational Excellence

Organizational excellence involves establishing an evidencebased approach to decisionmaking, as well as recruiting, training and retaining a qualified workforce that is healthy, respectful, and high performing.

1. Comprehensive Regulatory Review
Success Measures			Key Achievements in 2020-21
Publish an online consultation paper to invite stakeholder submissions regarding a comprehensive regulatory review		Completed	The OSB: Published a consultation paper to invite stakeholder submissions regarding a comprehensive review of directives and regulations under the BIA and the CCAA to identify areas of Canada’s insolvency system that can be made more agile, transparent, and responsive without jeopardizing the integrity of the system.
Collaborate with ISED’s Strategy and Innovation Policy Sector (SIPS) to recommend any consequential legislative changes identified through the consultation Prepare a package of recommended regulatory reforms for approval		Deferred	Due to the prioritization of COVID-19 pandemic issues, the consultation paper to invite stakeholder submissions on the comprehensive regulatory review was delayed. As a result, collaboration with SIPS on potential legislative changes and preparation of the recommended regulatory amendments package has been deferred to 2021-22.
2. Strengthening the OSB’s Compliance Framework
Success Measures			Key Achievements in 2020-21
Implement a modernized, riskbased Debtor Compliance (DC) program that includes Artificial Intelligence (AI) capability after piloting an enhanced DC risk model		Ongoing	The OSB: Built on last year’s progress to deploy a modernized DC program by: Piloting an enhanced risk model with AI capability, scheduled to run until October 2021; Initiating and advancing the development of a DC Management System, to support case management for improved program delivery; Developing risk indicators and performance metrics; and Initiating the development and review of training material for operational employees to support program enhancements scheduled for implementation in 2021-22.
Pilot a tailored approach to LIT compliance activities		Ongoing	The OSB: Monitored and improved the effectiveness of its LIT Compliance Program by: Enhancing its compliance activities and internal procedures to shift to remote delivery of LIT Compliance activities, while focusing on high-risk areas during the COVID-19 pandemic such as LIT management of estate trust funds; and Adapting compliance activities to reflect changes in the insolvency profession.
Incorporate the findings of the Compliance Framework (CF) review to strengthen its compliance programs		Deferred	An ISED review of the CF was started later than planned and is now expected to be completed in 2021-22.
3. Registrars Conference
Success Measures			Key Achievements in 2020-21
Design, plan, and host a conference for Registrars		Completed	The OSB: Designed, planned, and hosted a conference for Registrars, which was attended by more than 60 participants; Received positive feedback on the format and content of the conference; and Received significant interest from Registrars to participate in meetings held on a more regular basis.
Summarize and broadly share the results of the discussion with interested stakeholders		Deferred	Due to the prioritization of publications related to the COVID-19 pandemic, the “What We Heard” report summarizing the conference discussions has been deferred and will be shared with interested stakeholders in 2021-22.
4. Helping Canadians: Finding the Right Debt Solution
Success Measures			Key Achievements in 2020-21
Conduct research relating to Canadians who are experiencing financial difficulties		Completed	The OSB: Conducted user experience research to gain a better understanding of the pathways indebted Canadians take to arrive at debt solutions, and to inform enhancements to its debt solutions portal and other web-based tools.
Implement enhancements to the debt solutions portal, including the publication of a comparative table of debt solutions		Deferred	Due to the prioritization of COVID-19 pandemic issues, enhancements to the debt solutions portal were deferred and the publication of a comparative table of debt solutions is now scheduled for 2021-22.
Assess the feasibility of an interactive debt solutions calculator and decision tree		Completed	The OSB: Completed a feasibility assessment for the development of a Digital Debt Advisor (DDA) web tool, with AI capability, to help debtors identify insolvency options based on their needs: The development, testing, and implementation of the DDA web tool is scheduled for 2021-22.
5. Helping Canadians: Engaging Stakeholders on the Debt Advisory Marketplace
Success Measures			Key Achievements in 2020-21
Engage with federal and provincial regulators and other partners on the debt advisory marketplace		Ongoing	The OSB: Initiated discussions with federal and provincial regulators, as well as other partners, to discuss shared concerns regarding the debt advisory marketplace.
Increase stakeholders’ awareness about information that can help debtors avoid paying for services they do not need		Completed	The OSB: Engaged in discussions and provided advice to stakeholders, such as the Financial Consumer Agency of Canada, regarding insolvency information that can help debtors avoid paying for unnecessary services.
6. Operational Training
Success Measures			Key Achievements in 2020-21
Update existing training modules and deliver new ones		Completed	The OSB: Updated existing training modules and delivered new ones for its operational employees based on identified needs, incorporating digital tools to optimize learning.
Implement a national training calendar		Completed	The OSB: Increased access to its learning materials by implementing a new Operational Learning Portal and a national training calendar.
Implement a learning catalogue and customized learning plans for operational employees according to individual training needs		Completed	The OSB: Implemented a learning catalogue and persona-based learning plans for its Operations employees to foster a customized learning environment.

Ongoing Activities

Providing Insolvency Information to Canadians

The OSB provides insolvency information to Canadians via a variety of channels including its website, social media platforms, and its National Service Centre (NSC).

In 2020-21, the NSC:

• Adapted its business practices to deliver its activities remotely in response to the COVID-19 pandemic;
• Enhanced its employee learning pathway; and
• Introduced a survey to measure client satisfaction.

The following activities will continue to be advanced by the OSB in 2021-22:

• Establish ongoing mechanisms to consider feedback as a basis for continuous improvement of OSB information services; and
• Migrate the Insolvency Records Search call service to the NSC to streamline the client experience.

Internal Services Enhancements

The OSB’s Internal Services provide ongoing support, leadership, and strategic direction to organizational activities.

In 2020-21, the OSB:

• Used business data analytics to support compliance activities and modernized its DC Program business applications;
• Improved recruitment and retention of a qualified, engaged, agile, and high-performing workforce; and
• Created a new Mental Health and Wellbeing Committee, which supports mental health awareness by organizing activities and providing information related to mental health training, tools, and resources.

Looking Ahead

Building on what was accomplished in 2020-21, the OSB continues to fulfill its mandate and advance its priorities, while responding to the challenges of the COVID-19 pandemic, to achieve meaningful results for the insolvency system and Canadians. In addition to pursuing its compliance mandate, its business priorities for 2021-22 will focus on implementing changes to its regulatory framework, seeking to modernize and reduce unnecessary administrative burden on those it regulates and helping those experiencing serious financial difficulties to find the right debt solution. I invite you to read the OSB’s 2021-22 Business Plan for more details.