The Nova Scotia Securities Commission has approved a settlement agreement with activist investment company Clarke Inc., the company said Friday.

The settlement related to the NSSC’s investigation of a 2005 trade by Clarke in the securities of Advanced Fiber Technologies Income Fund that was initially announced by Clarke in February 2008.

In the settlement, Clarke acknowledges that it acted contrary to the public interest in failing to exercise sufficient due diligence relating to information concerning AFT.

The settlement agreement acknowledges that Clarke between 2005 and 2008 approved new internal policies and procedures and that Clarke co-operated with NSSC staff in its investigation.

Clarke will pay $300,000 toward an administrative penalty under the settlement agreement, as well as $15,000 toward costs of the investigation.

A special committee of Clarke’s board of directors oversaw the settlement agreement.

IE