Goldcorp, Inc. chairman Ian Telfer settled with the Ontario Securities Commission (OSC) Friday, over allegations that he advised a brokerage employee, who stands accused of insider trading, how to avoid her firm’s scrutiny.

In settling the regulator’s allegations, Telfer admitted that his conduct fell short of the standard expected from someone with extensive experience at senior levels in the capital markets. He was reprimanded by the OSC and agreed to pay $200,000 towards the cost of the investigation. He also agreed not to trade, or arrange trading by others, in securities of issuers in which he’s a promoter for one year; and, not to seek, or accept, any reimbursement for the costs ordered against him.

Telfer admitted to advising Eda Marie Agueci, who worked at GMP Securities LP, to use BlackBerry PIN messages instead of email to avoid company scrutiny of her messages. It says that she then used this method to communicate about securities trading. The allegations that she engaged in improper trading have not been proven.

As part of the settlement, Telfer admitted that it was not proper to advise a brokerage employee to circumvent its monitoring of communications. However, it says that he had no knowledge of any alleged improper trading.

Additionally, Telfer admitted that he advised Agueci not to purchase shares of a private placement in her own name. This meant that the beneficial owner of the shares was not disclosed. In the settlement, he conceded that he should have known that this meant there was a real risk that the firm might not be able to monitor her trading, as required.

According to the settlement, he maintains that, at the time, he believed that his conduct was proper; but that he now admits that, in hindsight, his conduct fell below the standards required of him as a senior market participant, and that this conduct was contrary to the public interest.

“The OSC will exercise its public interest jurisdiction where it detects behaviour that undermines compliance systems designed to ensure the fair and efficient operation of Ontario’s capital market,” said Tom Atkinson, director of enforcement at the OSC.

“Participation in Ontario’s capital markets is a privilege that comes with significant responsibilities, particularly for sophisticated participants like Mr. Telfer,” he added.