By Emma Buchanan

On June 26th 1979, 16 insolvency professionals signed a patent letter that would lay the foundations for what we now know as the Canadian Association of Insolvency and Restructuring Professionals (CAIRP). The professional body was the first of its kind in the country, born at a time when there was little to no training as candidates for Trusteeship. The idea first came around 1977, garnering support from large and small firms as well as then Superintendent of Bankruptcy, Jacques Brazeau. The Canadian Insolvency Association (CIA), as it was then called, was created to fill that void and get people in the field to exchange ideas, education and more.

From its earliest days, the Association had cross-country presence and communication. In November 1979, the CIA published its first newsletter, called “The Association Review,” to keep members advised of the Association’s progress, volunteer efforts and developments in the practice. During the same time, the Professional Development Committee held development and training seminars in five centres across Canada, with 585 people in attendance. Then-president, Claude Mercure, wrote at the time: “We trust every member will benefit from our efforts and that our Association will continue to grow not only in terms of members, but in public recognition and confidence.”

One of the original signatories, Keith G. Collins, became the Association’s second president. In his 1980-81 Annual Report, he wrote that the strong organizational systems and policies already in place allowed him to concentrate on new programs, including another series of five-city seminars, the creation of a more in-depth two-day training program, and the establishment of a committee to develop a code of professional conduct. The latter, he said, would ultimately “improve immeasurably our image in the business community.”

“Reflecting back to last September when I took office, I told members then that my primary goal was to improve the quality of insolvency administration in Canada by moving the Canadian Insolvency Association closer to becoming the professional body of insolvency practitioners,” he wrote. “To attain my objectives, I determined that we must build on the achievements of the Association, build new programs which would encourage a greater degree of professionalism among members, review the standards of admission to membership in our Association, and improve the public image of insolvency practitioners.”

Those aims were furthered as the Association continued to progress through the decade, and in 1986, the Practice Standards Task Force was created. The task force produced draft Standards of Practice in areas including Banking and Funds; Control of Assets; Files Documentation and Retention; Record Retention and more.

“When the Association was only six or seven years old, we were in the process of learning how to walk, not run,” says 1986-87 President Beverly W. Fowler. “At that stage, we were an association bringing together large firms, and I remember that the comradeship you felt on the board with all of the people involved was tremendous. It wasn’t a competition; it was everybody coming together to do something for the good of our profession.”

Clarity of purpose for the organization only continued to grow stronger in the following years, and in 1989, CAIRP’s first Mission Statement was approved:

“The Mission of the Canadian Insolvency Association is to attract, develop and support members who are the recognized leaders in providing insolvency/Business recovery services and to ensure the highest degree of public confidence in, and respect for, the integrity, objectivity and competence of our members and for the integrity and value system of insolvency administration throughout Canada.”

In 1990, The Canadian Insolvency Association became The Canadian Insolvency Practitioners Association (CIPA), marking the end to a lighthearted joke among previous members who could say they “belonged to the CIA.”

Larry Prentice (2001-03 and 2016-17 Chair) told a story about his colleague, Executive Committee Member and former President Norm Kondo. “[He] had a true story of checking into a hotel for a conference, saying to the front desk staff that he was with the CIA—only to have the security detail for the leader of a European country knock on his door a half hour later requesting that he move to a different floor of the hotel away from the high-level security detail assigned to safeguard that leader.”

Also in 1990, the Association sought incorporation by Special Act of Parliament so members could use the designation of Chartered Insolvency Practitioner (CIP). The following years marked major changes for the insolvency profession as amendments to the Bankruptcy Act began to take shape. Through the changes, the Association’s feedback was essential as professionals who were on the ground and understood the ins and outs of the practice.

“We have provided detailed analysis of the draft legislation and issues which are not yet included in the bill,” wrote Stephen H. Barnes, Chair from 1995 to 1996. He also detailed the Minister of Industry’s praise of the Association's “unflagging efforts” and invaluable analysis to the federal Bankruptcy and Insolvency Advisory Committee over the course of several years.

CIPA also became an even more publicly visible organization around this time. The first Public Relations Task Force was created in 1996, and as Ralph W. Peterson wrote in 1997, the milestones only continued. “After a decade of negotiation, we have signed a Memorandum of Understanding (MOU) on One-Stream Licensing with the Superintendent of Bankruptcy. This is an historic event, and we firmly believe that a single standard of qualification will enhance the credibility of the licensing process. [It also] marks our maturation as a professional Association and a leap of faith towards the eventual objective of self-regulation.”

At the start of millennium, the Association underwent its final name change from CIPA to CAIRP. The name change also came with a new professional designation of Chartered Insolvency and Restructuring Professional (CIRP). Chair, Peter Wedlake, wrote in his note to members that year, “We do more than liquidation work, and a new name and designation will help the public understand that we are specialists when it comes to dealing with business and individuals experiencing financial difficulties, whether it be a liquidation, restructuring or turnaround.”

The Association’s student education programs also evolved, as 2000-2001 marked a partnership with the Superintendent of Bankruptcy for The National Insolvency Qualification Program (NIQP), which was previously launched in 1998. This program was responsible for the development and administration of the course of study for the certification mark CIRP, as well as for a license as a Trustee in Bankruptcy. In the two following years, all of CAIRP’s education programs were “completely rewritten or substantially revised,” as per then-Chair Bill Courage. A prescribed course of study rewrite effort began in 2002 with NIQP, and was completed in the 2003/2004 year. The Insolvency Administration Course was also updated.

Insolvency reform continued, and CAIRP stayed the course, contributing to the process in crucial ways. Members drafted submissions and testified at public hearings, as well as provided informed recommendations and conducted outreach to ministers, politicians and the media. In December 2007, the Association wrapped up six years of contributions to federal insolvency and restructuring system legislative reform with the passage of Bill C-12 (Bill C-26 with Royal Assent). “This reform represents a tremendous outcome for CAIRP and its members,” wrote then-Chair Alan H. Spergel. “The Association was involved in the insolvency reform at every step of the legislative process.”

This era of reform ushered in other changes, including CAIRP’s new Standards of Professional Practice. The Standards, which were brought into force in August 2009, included new reporting requirements pursuant to the changes enacted through Bill C-12. They were drafted by the Corporate Practice Committee, with participation from the CAIRP Board of Directors, the Office of the Superintendent of Bankruptcy, and a number of legal representatives specializing in insolvency and restructuring. Even amidst changing times, CAIRP stayed true to its mandate to ensure and exalt the high standards of professionalism and public confidence in the integrity of Insolvency and Restructuring practice in Canada.

In October 2009, a Memorandum of Understanding (MOU) was signed with the Superintendent of Bankruptcy to bring the CIRP Qualification Program back to CAIRP. This marked a monumental change, as the program had been jointly delivered since September 1997. “The revised agreement was the first step in de-linking the CIRP certification mark for licensing as a Trustee,” then-Chair Kevin Brennan wrote of the change. “The Association is now in control of its general membership admissions. Under the previous MOU, the admission requirement for general membership in the Association was to sit the oral board examination and receive a licence as a Trustee in Bankruptcy. This effectively gave the OSB control over CAIRP general membership admission. CAIRP has now taken back control of its own destiny.” As per recommendations from Brennan and David Howe’s NIQP Review Committee, the Qualification Program also got a new name: the CIRP Qualification Program (CQP), in addition to a new mission statement, a streamlined course curriculum, and “a more effective examination process and a revised governance structure.”

In the 2011 to 2012 year, efforts were made to cement the status of CAIRP members as the “go-to” insolvency professionals and that this would be recognized by all stakeholders in the field of insolvency – both in Canada and abroad. During this time, the Board of Directors mandated the creation of The Governance Committee to undertake a comprehensive review of governance matters with respect to CAIRP. Their recommendations included creating a new position on the Board for a member of five years or less (New Member). “We are committed to ensuring that there is at least one new member on each of our committees and task forces,” Chair, Guylaine Houle wrote. “The energy, desire to learn and willingness to get involved that many new members have brought to CAIRP has been a source of inspiration.”

From 2013 to 2015, a branding “sea change” came about as CAIRP worked with the OSB and supported their efforts to amend the Trustee Designation and Advertising Directive to replace the “Trustee in Bankruptcy” designation and associated rebranding to “Licensed Insolvency Trustee.” Later that year, CAIRP submitted its response to the Industry Canada discussion paper “Fresh Start: A Review of Canada’s Insolvency Laws” and provided comprehensive analysis and recommendations for BIA and CCAA reform. At the 2013 Annual Conference, then-Chair, Paul Casey concluded: “I‘m in my 25th year as a specialist in insolvency and restructuring work, and I am as proud of what I do today as I was on the day I qualified. We add value, on a real-time basis, and have earned our trusted reputation before courts and regulators.”

In 2015/16, the Association struck a Committee to develop a new Strategic Plan, including a detailed tactical plan to achieve its new objectives. The Strategic Plan Committee also developed a revised Vision and Mission Statement: “CAIRP is Canada’s preeminent association for education, standards and advocacy for insolvency and restructuring professionals.”

The Association also focused on strengthened relations with its key stakeholder organization - the OSB. “One of the hallmarks of CAIRP’s success over our nearly 40 years as an organization has been its constructive and effective relationship with the OSB,” wrote Chair, Larry Prentice. “It has been critical to be able to exchange information and perspectives on the various initiatives being undertaken by CAIRP and the OSB, both to enhance the efficiency and practicality of those initiatives as well as to appreciate the objectives that each is seeking to achieve.”

In 2018, CAIRP intervened in four court case appeals of national interest to members: Callidus, Canada North Group Inc., Redwater Energy and Lapointe and responded to ISED’s consultation on Enhancing Retirement Security for Canadians.

Then-Chair, Chantal Gingras wrote, “As CAIRP moves forward, opportunities to advance the insolvency profession seem limitless. CAIRP has been fortunate to have such a committed and engaged membership that faithfully steps up to serve on committees and as sponsors, mentors and educators. The valued cumulative contribution of all volunteers enables CAIRP to achieve goals that would not be possible for an association of our size and have been especially crucial in this transition year of significant staff changes at the CAIRP office.”

In some ways, the Association’s small-but-mighty resilience and adaptability was well suited for the global change that was about to take place. In early 2020, CAIRP launched a new and technologically advanced association management system, as well as an online student enrolment application and website. This was prior to the COVID-19 pandemic, and these changes allowed all business operations to continue virtually.

CAIRP put in place a Pandemic Response Working Group and worked closely with the OSB on a broad range of issues to help the insolvency industry navigate the pandemic. The Association also worked with the OSB and Department of Justice to get emergency orders approved in each province and territory across the country. As a result, all Canadians who filed for insolvency were provided with greater flexibility to meet their obligations during this time of economic uncertainty.

“The necessary pivot to conduct business “as usual” essentially became our raison d’être,” wrote 2019-21 Chair, Mark Rosen. “Our regional forums, annual conferences, education programs and communication with our Executive, Board, Provincial Presidents and committees became virtual. We can indeed be pleased with our accomplishments during these abnormal times.”

In fact, the Association's relationship with the OSB strengthened during this period of uncertainty. In 2021, CAIRP signed a new MOU with the OSB to clarify the roles and responsibilities of our Association in the development and delivery of the CQP. The Association responded to the OSB’s “Comprehensive Review of Directives and Regulations under the Bankruptcy and Insolvency Act (BIA) and the Companies’ Creditors Arrangement Act (CCAA). CAIRP and the OSB also jointly launched the “Guide to Promote Diversity and Inclusion” to increase representativeness within the LIT profession.

“The COVID-19 pandemic continues to impact CAIRP and the industry,” wrote 2021-2023 Chair, Jean-Daniel Breton. “However, the Association and its members rose to the challenge and performed admirably. Some of the accomplishments of the Association during this period included creating a new category of associate members (“Insolvency Administrator Associates”), moving forward with the CQP renewal project, raising the profile of CIRP, LITs in the media including a joint communication with the OSB on the debt advisory marketplace and broadening advocacy efforts.

In 2023, CAIRP appeared before the Standing Senate Committee on Banking, Commerce and the Economy re Bill C-228, responded to the Treasury Board of Canada’s Secretariat Consultation on the Annual Regulatory Modernization Bill and responded to the Consultation on PSEIs (Bills C-309 and S-215). CAIRP also made submissions to the Standing Senate Committee on Banking, Commerce and the Economy on Bill C-280; Finance Canada’s Consultation on Fighting Predating Lending and Pre-Budget Consultations regarding legislative changes for MSMEs.

In 2023, following extensive consultations with members and stakeholders, CAIRP’s 2024-2028 Strategic Plan was completed and approved by the Board. “CAIRP’s new Strategic Plan is an important self-examination by the Association, articulating our goals and the direction for our renewal following the COVID-19 pandemic,” wrote Chair André Bolduc.” It considers member feedback and an assessment of the rapid and fundamental changes that are occurring in the insolvency marketplace.” Four strategic goals were set, including revitalizing the CIRP and LIT brands, delivering best-in-class professional education, timely response to developments in the insolvency marketplace, and ensuring resilience in CAIRP’s operations and services. The Plan allows the Association to meet the needs of our members and be responsive to stakeholder interactions. CAIRP also remains committed to fostering and advocating for diversity and inclusion within the LIT profession.

“Through the years, I have personally seen the dedication and excellence of our members who have volunteered countless hours to fulfil CAIRP’s mandate and mission supported by our committed CAIRP team,” wrote Chair André Bolduc. “I encourage you to learn more and rediscover the rich and storied history of this resilient and dynamic Association, an association driven by its amazing volunteers.”

Over 45 years, through a changing economic landscape, legislative changes, and even a pandemic, the Association has proven itself to be strong and capable of raising the profile of the Insolvency and Restructuring profession. The work and determination of its members allows for CAIRP’s continued success, building strong foundations for an even stronger future.