Bankruptcy or proposal

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

What distinguishes a bankruptcy from a proposal?

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 the creditors.

A proposal is an offer by a debtor to the debtor’s creditors to repay all debts to them over a longer time and/or repay a percentage of the debts to them over a set period. There are two types of proposals: a proposal and a consumer proposal.

If you hold a representative’s certificate under only the Act respecting the distribution of financial products and services, you don’t have to declare a proposal accepted by your creditors and the court to the AMF. In this situation, your right to practise may be granted or maintained. However, if you become bankrupt, make an assignment of your property or are the subject of a receiving order under the Bankruptcy and Insolvency ActThis link will open in a new window, you must declare it to the AMF.

If you are registered under the Securities Act, you must notify your firm of your bankruptcy or proposal situation

What are the consequences of a bankruptcy?

Each case is different. The AMF can’t make a decision about your situation without having first analyzed your file.

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

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

Independent representative or responsible officer of a firm or independent partnership

If you are in a bankruptcy or proposal situation, you will not be able to apply for registration as an independent representative for a period of time determined by the AMF based on your circumstances. The AMF may also refuse your appointment as a responsible officer of a firm or independent partnership.

If you are currently an independent representative or responsible officer and you find yourself in a proposal situation, you may continue to act in that capacity, but you must keep the AMF informed of any developments by submitting, for example, your certificate of full performance of proposal. If you go bankrupt, you will be unable to act as an independent representative or responsible officer for a period of time determined by the AMF.

When and how to declare a bankruptcy

If you are certified in insurance, claims adjustment, financial planning or mortgage brokerage

You must notify the AMF of any change to any information or documents previously provided to the AMF. Don’t wait until the renewal of your certificate to declare your bankruptcy to the AMF.

Inform the AMF within 5 days

You must submit the Statement of Bankruptcy (pdf - 183 KB)This link will open in a new windowUpdated on September 19, 2023 together with the required supporting documents, within 5 days following your bankruptcy.

If you are registered for AMF 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. 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.
Warning

You must notify the AMF within five daysAccording to section 62 of the Regulation respecting the issuance and renewal of representatives’ certificates This link will open in a new window of your bankruptcy.

End of the warning
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 and 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.

If you are registered under the Securities Act (e.g., mutual funds and/or scholarship plans)

When applying for initial registration, you must indicate in Form 33-109F4 if any of the following have events have ever occurred to you or to any firm when you were a partner, director, officer or major shareholder of the firm:

  • Went bankrupt;
  • Made a voluntary assignment of property;
  • Filed a proposal; or
  • Was the subject of winding-up or dissolution proceedings (for an entity).

Any change in your financial circumstances must be reported to your firm so your file in the National Registration Database (NRD) can be updated within 15 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 - 183 KB)This link will open in a new windowUpdated on September 19, 2023 and submit it via AMF E-Services or send it by mail (see procedure above).

End of the warning

When and how to update bankruptcy information

If you are certified in insurance, claims adjustment, financial planning or mortgage brokerage

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

You must notify the AMF of any change to any information or document previously provided to the AMF within 5 days following the change.

Inform the AMF within 5 days.

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.

If you are registered under the Securities Act (e.g., mutual funds and/or scholarship plans)

Any change in your financial circumstances must be reported to your firm so your file in the National Registration Database (NRD) can be updated within 15 days following the change. If you need help, ask the chief compliance officer of the firm for which you are practising in the securities sector.