The U.S. Securities and Exchange Commission has settled administrative and cease-and-desist proceedings against Computershare Trust Company of Canada for failing to register as a transfer agent or broker with the SEC from June 2000 through April 2004.

The SEC’s order finds that, during that period, Computershare served as a transfer agent for at least 260 companies and as a broker effecting securities transactions for US-resident investors on behalf of approximately 100 issuers.

The firm consented to the entry of the cease and desist order against it without admitting or denying the commission’s findings, the SEC reported. Along with the cease and desist order, it was also required to pay disgorgement of $509,366, prejudgment interest of $92,502.71 and a penalty of $500,000. The commission also ordered it to comply with undertakings, including the retention of an independent consultant to review its policies and procedures.

In a related proceeding, Computershare requested that the commission issue an order exempting it from the broker registration requirements. The commission approved this request and issued an order granting the exemption. The exemption is limited to administering dividend reinvestment and stock purchase plans, employee stock purchase plans, employee stock option plans, and odd-lot programs with U.S. resident investors.