The Superintendent of Bankruptcy in Canada will bring into force Directive 1R4 and Licensed Insolvency Trustees on October 1 2018.
- As of October 1, 2018, this Directive, together with the requirement to use the related Forms as prescribed in Schedules I, II, and III, comes into force and revokes and replaces Directive No. 1R3, Counselling in Insolvency Matters.
On May 17th an addendum to the directive was published. This addendum will require the LIT to file through efiling in an XML format of the Insolvency Counselling Completion form to the OSB within 15 days of the completion of the final insolvency counselling session or submission of the R&D statement, whichever comes first.
UBERbase is in the process of updating the software program IPS to allow trustees to meet the new directive requirements. We have been working closely with the OSB with regards to implementation of the new directive and are in the process of completing development testing with the OSB, in their newly released test site. Once testing is completed a new development build will be released to the IPS clients, we suspect rolling this out to our client base late August and early September.
IPS and Audio Recordings – How to save and attach recordings to each estate.
Directive 1R4 requires that specific counselling sessions be recorded for the purpose of audit by the OSB.
Audio records shall be retained and available for validation by the OSB on request, for a minimum period of forty-five (45) days following the counselling session. Records shall be kept in a secure location and securely destroyed on a regular basis following the expiry of the retention period.
IPS Software through it’s integrated document management solution will provide LIT’s enhanced management and storage of the audio recordings.
- Audio recording files can be dragged and dropped into each individual estate and attached directly to the counselling session within IPS.
For more on the Directive 1R4 please check back regularly.
From the OSB
Q: My insolvency software provider has made a new version available. Should I upgrade my software before October 1, 2018?
A: Yes. LITs may upgrade their insolvency software to the newest version once it is made available by their respective software provider. LITs may use the upgraded software and complete Schedules I and II (pursuant to Directive 1R4) to record counselling sessions prior to the coming into force date of October 1, 2018.
LITs may also continue to record counselling sessions carried out prior to October 1, 2018 pursuant to Directive 1R3 requirements using the accompanying Schedule I (first stage) or Schedule II (second stage) counselling certificate. Schedule I and II certificates can be found on the OSB website.