Ethics

Question 1

Code of Ethics - Maintenance of high ethical standards

Answer 1

34 Every trustee shall maintain the high standards of ethics that are central to the maintenance of public trust and confidence in the administration of the Act.

Question 2

Code of Ethics - Trustees - Performance of duties

Answer 2

36 Trustees shall perform their duties in a timely manner and carry out their functions with competence, honesty, integrity and due care.

Question 3

Code of Ethics - Trustees - duty to cooperate with OSB

Answer 3

37 Trustees shall cooperate fully with representatives of the Superintendent in all matters arising out of the Act, these Rules or a directive.

Question 4

Code of Ethics - Trustee shall not assist or encourage

Answer 4

38 Trustees shall not assist, advise or encourage any person to engage in any conduct that the trustees know, or ought to know, is illegal or dishonest, in respect of the bankruptcy and insolvency process.

Question 5

Code of Ethics - Trustees shall be honest and impartial

Answer 5

39 Trustees shall be honest and impartial and shall provide to interested parties full and accurate information as required by the Act with respect to the professional engagements of the trustees.

Question 6

Code of Ethics - Trustee duty regarding Personal Information

Answer 6

40 Trustees shall not disclose confidential information to the public concerning any professional engagement, unless the disclosure is

(a) required by law; or

(b) authorized by the person to whom the confidential information relates.

Question 7

Code of Ethics - Trustee’s use of Personal Information

Answer 7

41 Trustees shall not use any confidential information that is gathered in a professional capacity for their personal benefit or for the benefit of a third party.

Question 8

Code of Ethics - Trustee shall not purchase directly or indirectly

Answer 8

42 Trustees shall not purchase, directly or indirectly,

(a) property of any debtor for whom they are acting with respect to a professional engagement; or

(b) property of any estates in respect of which the Act applies, for which they are not acting, unless the property is purchased

    (i) at the same time as it is offered to the public,

    (ii) at the same price as it is offered to the public, and

    (iii) during the normal course of business of the bankrupt or debtor.

Question 9

Code of Ethics - Trustee shall not sell directly or indirectly

Answer 9

43 (1) Subject to subsection (2), if trustees have a responsibility to sell property in connection with a proposal or bankruptcy, they shall not sell the property, directly or indirectly,

    (a) to their employees, agents or mandataries, or persons not dealing at arms’ length with the trustees;

    (b) to other trustees or, knowingly, to employees of other trustees; or

    (c) to related persons of the trustees or, knowingly, to related persons of the persons referred to in paragraph (a) or (b).

(2) If trustees have a responsibility to act in accordance with subsection (1), they may sell property in connection with a proposal or bankruptcy to the persons set out in paragraph (1)(a), (b) or (c), if the property is offered for sale

    (a) at the same time as it is offered to the public;

    (b) at the same price as it is offered to the public; and

    (c) during the normal course of business of the bankrupt or debtor.

Question 10

Code of Ethics - Trustee shall avoid influence, interest, or relationship that impairs judgement

Answer 10

44 Trustees who are acting with respect to any professional engagement shall avoid any influence, interest or relationship that impairs, or appears in the opinion of an informed person to impair, their professional judgment.

Question 11

Code of Ethics - Trustee may transmit information that is unverified if…

Answer 11

46 Trustees may transmit information that they have not verified, respecting the financial affairs of a bankrupt or debtor, if

(a) the information is subject to a disclaimer of responsibility or an explanation of the origin of the information; and

(b) the transmission of the information is not contrary to the Act, these Rules or any directive.

Question 12

Code of Ethics - Trustee shall not sign false document

Answer 12

45 Trustees shall not sign any document, including a letter, report, statement, representation or financial statement that they know, or reasonably ought to know, is false or misleading, and shall not associate themselves with such a document in any way, including by adding a disclaimer of responsibility after their signature.

Question 13

Code of Ethics - Trustees shall not engage in any business or occupation that…

Answer 13

47 Trustees shall not engage in any business or occupation that would compromise their ability to perform any professional engagement or that would jeopardize their integrity, independence or competence.

Question 14

Code of Ethics - Trustee cannot pay commission to 3rd party for professional engagement

Answer 14

49 Trustees shall not, directly or indirectly, pay to a third party a commission, compensation or other benefit in order to obtain a professional engagement or accept, directly or indirectly from a third party, a commission, compensation or other benefit for referring work relating to a professional engagement.

Question 15

Code of Ethics - Engagements that would discredit their profession or jeopardize the integrity of the bankruptcy and insolvency process.

Answer 15

50 Trustees shall not obtain, solicit or conduct any engagement that would discredit their profession or jeopardize the integrity of the bankruptcy and insolvency process.

Question 16

Code of Ethics - Manner which a Trustee may advertise

Answer 16

51 Trustees shall not, directly or indirectly, advertise in a manner that

(a) they know, or should know, is false, misleading, materially incomplete or likely to induce error; or

(b) unfavourably reflects on the reputation or competence of another trustee or on the integrity of the bankruptcy and insolvency process.

Question 17

Code of Ethics - Due care regarding actions of employees

Answer 17

52 Trustees, in the course of their professional engagements, shall apply due care to ensure that the actions carried out by their employees, agents or mandataries or any persons hired by the trustees on a contract basis are carried out in accordance with the same professional standards that those trustees themselves are required to follow in relation to that professional engagement.