When will the changes become effective?
Do I need a trust account?
Do I require a net worth of $15,000?
How much working capital do I require?
Have the security requirements changed?
How will I determine what my security requirement is?
Will I be able to operate from home?
What qualifies as a permanent place of business?
Will a licensee's employees and independent contractors now be able to work from home?

When will the changes become effective?

Most of the changes became effective until April 1, 2009, while the elimination of the trust account and the new security requirements for retail travel agents will not take effect until December 1, 2009.

Do I need a trust account?

Travel agents are required to maintain their trust accounts until December 1, 2009. Trust account requirements for travel wholesalers remain unchanged.

Do I require a net worth of $15,000?

Effective April 1, 2009, the net worth requirement for new applicants and licensees ceased to be a component of the financial criteria needed to obtain or maintain a licence. Related subrogation agreements have been returned to licensees who have provided them to the Director of the Business Practices and Consumer Protection Authority.

How much working capital do I require?

The working capital requirement has not changed for either new applicants or existing licensees. Licensees will be required to have a reasonable amount of working capital to adequately operate their travel business. Generally, a positive amount is considered sufficient.

Have the security requirements changed?

The requirements for security have not been eliminated and, in some cases, may increase when the new security requirements for retail travel agents come into effect on December 1, 2009. After that date, retail travel agents will be required to provide a minimum security of $15,000 to Consumer Protection BC. Those licensees whose gross sales exceed certain thresholds will be required to provide additional security in accordance with the new regulation.

How will I determine what my security requirement is?

The fiscal year (FY) end reminder statement for licensees with a December 31, 2009, FY end will contain the new security calculation worksheet with new security amounts. Similar notices will be sent at the end of each following month to those licensees who FY end falls on that month end. Travel agents will have 90 days from their FY end to submit the appropriate documentation along with any required change to their security.

Will I be able to operate from home?

As of April 1, 2009, new applicants and existing licensees are allowed to seek permission to operate a travel agency or travel wholesaler business from a location other than a commercial place of business.

What qualifies as a permanent place of business?

In order for your home to qualify as a permanent place of business, you must:

1. Obtain a municipal business license for the operating location
2. Set aside a dedicated area within the home for business operations
3. Separate the area from other business operations
4. Install/set up a dedicated business telephone and email
5. Complete a statutory declaration authorizing inspection visits and provision of business records

Will a licensee's employees and independent contractors now be able to work from home?

The requirement that a licensee's employees work from an approved licensed location has not changed. The requirement for independent contractors who operate their own travel business to obtain a licence also remains unchanged.