Canaccord Genuity Group Inc., Canada’s leading independent investment bank, restructures leadership in its U.S. division following an $80-million settlement with U.S. regulators over compliance violations.
Key Leadership Transition
Jeff Barlow, who led the New York-based U.S. investment banking operations for 11 years, retires effective immediately, according to an internal company memo. He will remain as an advisor. Toronto-based CEO Dan Daviau assumes temporary oversight of the U.S. division until a permanent successor is appointed.
Daviau previously headed the U.S. investment banking team from 2012 to 2015 before becoming CEO, with Barlow succeeding him.
Details of the Regulatory Settlement
The settlement resolves a three-year probe into compliance shortcomings, including deficiencies in the firm’s anti-money-laundering surveillance. Regulators imposed the largest-ever penalty on a broker-dealer for breaching the U.S. Bank Secrecy Act. The penalties come from the U.S. Department of the Treasury’s Financial Crimes Enforcement Network and the Securities and Exchange Commission.
Over the past three years, Canaccord implemented sweeping changes to its compliance program to meet regulatory standards.
U.S. Division Growth Under Barlow
Barlow joined Canaccord in 2007 after 15 years at competing U.S. firms. He expanded the division through acquisitions and hires, growing it to 350 professionals generating $500 million in annual revenue—the firm’s largest unit, contributing 21% of investment banking revenues.
“Jeff is transitioning at a time when this business is stronger than ever and positioned for its next phase of growth,” Daviau stated in the memo. “We are grateful to Jeff for his long-standing partnership and contributions.”
Recent Business Developments
In June 2023, Canaccord faced a potential major fine related to its U.S. equity trading arm’s wholesale market-making unit, which it sold to Cantor Fitzgerald in April 2025.
The settlement had little impact on shares, up 38.5% over the past year. The firm now reviews options for its British wealth management business, managing $74.6 billion in assets—potentially worth over $1 billion in a sale. Total assets under management across regions stand at $144.8 billion.
Analyst Jeff Fenwick at ATB Cormack Capital Markets noted: “We remain focused on the prospect of a strategic transaction to divest the U.K. wealth management unit, which could provide a material catalyst to valuation.”
Strong Financial Performance
Canaccord reports robust results amid a bull market in mining and tech deals. For the first nine months of fiscal 2026 (ended December 31, 2025), revenues rose 24% to $1.6 billion, while adjusted net income climbed 48% to $127.8 million.
In June 2023, executives shelved a $1.1-billion privatization bid partly due to regulatory uncertainty. The current leadership remains, with market capitalization steady at $1.2 billion.
