You must declare a bankruptcy or, in certain cases, the filing of a proposal.

What distinguishes a bankruptcy from a proposal?

A bankruptcy allows persons who are insolvent or in financial difficulty to use a large portion of their property to pay their debts. Their property is liquidated by a bankruptcy trustee, who then distributes the money to creditors.

In the case of a proposal, debtors offer to repay all of their debt to their creditors over a longer time and/or repay a percentage of their debt over a set period. There are two types of proposals: a proposal and a consumer proposal.

If you’re an insurance and/or financial planning representative only, you don’t have to declare a proposal or consumer proposal that was accepted by the creditors and the court. However, you must declare the information related to a bankruptcy if you become bankrupt, if you make an assignment of your property or if a receiving order is made against you under the Bankruptcy and Insolvency ActThis link will open in a new window.

What are the consequences of a bankruptcy?

As each case is different, we can’t tell you in advance if your right to practise will be affected.

However, following an analysis of your file, the AMF may decide to:

  • Subject your right to practise to conditions or restrictions;
  • Refuse to issue or renew your certificate; or
  • Cancel your certificate.

If you go bankrupt or file a consumer proposal while you’re registered, you will not be able to apply for registration as an independent representative or act as a firm’s responsible officer for a period of six months after you’re discharged from bankruptcy.

When and how to declare a bankruptcy

If you are registered in insurance and/or financial planning?

You must notify the AMF of any change to the information provided in your certificate application or during your last renewal. Don’t wait until the renewal of your certificate to declare your bankruptcy.

Inform the AMF within five days

You must send us the Statement of Bankruptcy (pdf - 111 KB)This link will open in a new windowUpdated on 1st November 2016 and the required supporting documents within five days of your bankruptcy.

If you are registered for AMF E-Services, you must:

  1. Sign in to E-Services;
  2. Validate the information in the identification section;
  3. Select Other applications/requests;
  4. Select Other applications - Compliance;
  5. Attach the scanned form and supporting documents to the application;
  6. Submit the application.

If you’re not registered for AMF E-Services, you must:

  1. Register for E-Services by following these steps; OR
  2. Send your documents by mail.
Insight

If you’re attached to a firm, let the firm know.

The information you give us is confidential. However, if you become bankrupt, we advise you to inform the firm you’re attached to.

End of the insight

The AMF analyzes your file

The AMF analyzes the circumstances surrounding your bankruptcy based on the documents provided by you as well as other stakeholders, including the bankruptcy trustee and the Office of the Superintendent of Bankruptcy.

Special attention is paid to the following:

  • The reasons you declared bankruptcy;
  • The types of debt, particularly if financial services participants (individuals or entities) are creditors in your bankruptcy;
  • The cumulative number of bankruptcies.

Unless the AMF indicates otherwise, you can continue to practise while your file is being analyzed.

Are you registered in the mutual fund dealer or scholarship plan dealer category?

You must update your file in the National Registration Database (NRD).

When applying for initial registration, you must indicate in Form 33-109F4 if you or a firm of which you were a partner, officer, director or major shareholder:

  • Went bankrupt;
  • Made a voluntary assignment of property;
  • Filed a proposal or consumer proposal;
  • Was subject to winding-up or dissolution proceedings (for a firm)

Any change in your financial circumstances must be reported to your firm so your NRD file can be updated within 10 days of the change. If you need help, ask the chief compliance officer of the firm for which you are practising in the securities sector.

Warning

You must also complete the Statement of Bankruptcy (pdf - 111 KB)This link will open in a new windowUpdated on 1st November 2016 and submit it via AMF E-Services or send it by mail (see procedure above).

End of the warning

To update bankruptcy information

Don’t wait until the renewal of your certificate to update the information provided concerning your bankruptcy.

Even though the declaration to be completed at renewal contains a question about bankruptcy, you must notify the AMF of any change to any information or document you’ve provided to the AMF within 5 days of the change.

To notify the AMF of such a change, you must:

If you are registered for E-Services:

  1. Sign in to E-Services;
  2. Validate the information in the identification section;
  3. Select Other applications/requests;
  4. Select Other applications - Compliance;
  5. Complete the “Description” field in order to justify your application;
  6. Submit the application.

If you are not registered for E-Services:

  1. Register for E-Services by following these steps; OR
  2. Send your documents by mail.

Independent representative or responsible officer of a firm

If you’re currently an independent representative or a responsible officer and have filed a consumer proposal, we will send you an insolvency letter so you can continue to practise.

However, if you file for bankruptcy, you will no longer be able to act as an independent representative or responsible officer.