The logo for Canaccord Genuity is shown in Toronto on Wednesday, March 8, 2023. THE CANADIAN PRESS/StaffStaff/The Canadian Press
Canaccord Genuity Group Inc. CF-T has set aside US$75-million to pay penalties from U.S. regulators as the investment bank attempts to settle a long-running investigation into its Wall Street office.
Toronto-based Canaccord announced late Thursday it boosted its provision for fines by US$55-million in the latest update on a two-year negotiation.
In a press release, the company gave no timetable on a settlement, and said “it continues to actively pursue a unified resolution of its previously disclosed regulatory enforcement matters.”
In June, 2023, Canaccord disclosed it faced an investigation into its U.S. wholesale market-making operations and would probably incur a significant penalty.
This April, Canaccord sold the wholesale division to New York-based investment dealer Cantor Fitzgerald.
In its press release, Canaccord said over the past three years, the firm “substantially invested in a comprehensive compliance transformation aimed at aligning with regulatory standards and remediating its existing program.”
For Canaccord, a US$75-million settlement would dwarf the company’s profits from its U.S. operations. The investment dealer announced financial results on Thursday. Globally, its investment banking division earned a $25.5-million profit in the most recent three month period, up 71 per cent from the same period of last year.
Canaccord, the country’s largest independent dealer, has wealth management and investment banking divisions and earned $44.9-million in the most recent quarter on revenues of $530-million.