Sidney Charles Schiff and Schiff & Associates inc. —
Professional Conduct Decision
What is a professional conduct decision?
An investigation into a Licensed Insolvency Trustees (LIT)'s professional conduct is initiated when there is information to suggest that the LIT has not properly performed the duties of a trustee or there has been improper administration of an estate or lack of compliance with the Bankruptcy and Insolvency Act (BIA).
In some cases, the findings are sufficiently serious to support a recommendation for sanctions against the LIT's licence (cancel or suspend a LIT's licence (subsection 13.2(5) of the BIA) or impose conditions or limitations (subsection 14.01(1) of the BIA)).
The professional conduct decision is deemed to be a decision of a federal board, commission or tribunal and may be judicially reviewed by the federal court.
Province of Ontario
Office of the Superintendent of Bankruptcy
In the matter of the professional conduct investigation report relating to the conduct of Sidney Charles Schiff and Schiff & Associates Inc. pursuant to subsection 14.02(1) of the Bankruptcy and Insolvency Act.
On , I ordered that the trustee licences issued to Sidney Charles Schiff and Schiff & Associates Inc. be cancelled pursuant to subsection 13.2(5) of the Bankruptcy and Insolvency Act. The cancellation was effective 10 days after the issuance of that order. No representations concerning this order were received from either Sidney Charles Schiff or Schiff & Associates Inc.
I subsequently received the professional conduct investigation report relating to the conduct of Sidney Charles Schiff and Schiff & Associates Inc. pursuant to subsection 14.02(1) of the Bankruptcy and Insolvency Act asking for a decision under subsection 14.01(1).
In light of the fact that the licences have already been cancelled pursuant to subsection 13.2(5), I must consider the possible value of proceeding with the above-mentioned professional conduct case pursuant to subsection 14.02(1). The effect of the cancellation of these licences pursuant to subsection 13.2(5)(b) of the Act is that reinstatement is not possible given that the powers to reinstate a licence as specified under subsection 13.2(4) are limited to cancellations in cases of failure to pay fees or in cases of a trustee becoming bankrupt. It would appear, therefore, that for the formerly licensed trustees to regain a licence as a trustee in bankruptcy, the formerly licensed trustees would be required to reapply for a new licence. As such, they would be subject to the conditions of Directive 13R — Trustee Licensing, including meeting the reputation and suitability requirements set out under this Directive.
In considering the above, I see no value in exercising the power provided to me under subsection 14.01(1) of the Act and recommend that the matter be put aside until such time as the former trustees reapply for a licence. In that event, the allegations of misconduct will be addressed by the applicants in order to satisfy the Superintendent that they are of good character and reputation and that the issuance of a new licence will not impair public confidence in the insolvency process.
Superintendent of Bankruptcy
This document has been reproduced as submitted by the Superintendent of Bankruptcy.
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