The Ontario Securities Commission has reached a settlement with Francis George Lee Simpson, the former president and CEO of collapsed investment dealer Thomson Kernaghan & Co., who supervised renegade broker Mark Valentine.

The deal will go before a panel of OSC commissioners Wednesday for approval. Details of the settlement agreement remain confidential.

OSC staff allege that Simpson failed to ensure that the terms of a loan guaranteed by Thomson Kernaghan were properly disclosed to the Investment Dealers Association of Canada.

In addition, staff allege that Simpson failed to properly supervise the actions of Valentine, the former chairman of Thomson Kernaghan, in a number of specified transactions.

These allegations follow a joint investigation conducted by OSC and IDA staff.