A New Brunswick Securities Commission hearing panel has accepted a settlement agreement with Ontario limited market dealer Berrie White Capital Corporation and a principal of the company, the commission announced on Wednesday.

Matthew White, an officer, shareholder and chief compliance officer of Berrie White Capital, has paid an $8,000 penalty and $1,000 in costs associated with the investigation.

The order issued also provides that the company and White cannot benefit from any exemptions under the Securities Act for two years and four years, respectively, and that White is prohibited from becoming or acting as a director or officer of any issuer, registrant or mutual fund company for four years.

In August 2008, White wrote to two New Brunswick registered mutual fund dealers, proposing an arrangement to have someone who is not registered to trade in securities in New Brunswick, sell exempt securities and to pay illegal commissions to that individual.

In the settlement, White acknowledged that he initially failed to produce relevant documents to a securities commission investigator. After learning of the investigation, White wrote to the New Brunswick mutual fund dealers to revoke his earlier proposal. He eventually furnished all relevant documents to the investigator.

Exemptions exist under New Brunswick securities law to provide greater access to the capital markets in New Brunswick. However, requirements must be met in order to qualify to use these exemptions.

“New Brunswick securities regulation is in place to protect investors and to ensure the integrity of capital markets,” said Rick Hancox, NBSC executive director. “We were able to act quickly in this situation and prevent any harm to investors. In this case, the respondents co-operated fully in the resolution of the enforcement action, and are remorseful of their error in judgment.”