Menkara, Amer Adnan - Opportunity to be Heard

IN THE MATTER OF

THE REGISTRATION OF

AMER ADNAN MENKARA

OPPORTUNITY TO BE HEARD BY THE DIRECTOR

SECTION 26(3) OF THE SECURITIES ACT

Background

2. In his application form the Applicant disclosed that he had filed for personal bankruptcy and it had not yet be discharged. According to the supporting documentation filed, Mr. Menkara will be automatically discharged on October 9, 2007.

3. On July 30, 2007, OSC staff informed the Applicant that it would recommend to the Director that his application for registration be refused on the basis of the outstanding bankruptcy. In accordance with subsection 26(3) of the Securities Act, Mr. Menkara has exercised his right to an opportunity to be heard by the Director, before the Director makes a decision concerning the application.

4. The Applicant requested to be heard through a written submission, which was received on August 22, 2007.

Suitability for registration

6. Mr. Menkara noted that the debt had been incurred as a result of a serious automobile accident which impaired his ability to earn an income.

7. The fit and proper standard for registration is based on three well established criteria that have been identified by the OSC:

The [Registrant Regulation] section administers a registration system which is intended to ensure that all Applicants under the Securities Act and the Commodity Futures Act meet appropriate standards of integrity, competence and financial soundness ...

(Ontario Securities Commission, Annual Report 1991, Page 16)

When analyzing these criteria staff consider:

• integrity -- honesty and good faith, particularly in dealings with clients, and compliance with Ontario securities law;

• competence -- prescribed proficiency and knowledge of the requirements of Ontario securities law; and

• financial soundness -- an indicator of a firm's capacity to fulfill its obligations and can be an indicator of the risk that an individual will engage in self-interested activities at the expense of clients.

8. The fit and proper standard for registration is both an initial and an ongoing requirement for applicants and registrants. OSC staff had concerns regarding the financial soundness of the Applicant and his fitness for registration due to the outstanding bankruptcy. As a result staff recommended that the registration of Mr. Menkara be refused.

9. It is OSC staff practice to recommend that registration be refused if a person has a bankruptcy that has not been discharged. This practice is consistent with the investor protection mandate of the OSC.

10. OSC staff will sometimes recommend that an applicant be granted registration with terms and conditions after a bankruptcy has been discharged. The fact that the Applicant will be discharged in the future was not a factor in staff's recommendation to refuse registration.

Decision

September 6, 2007

"David M. Gilkes"