Canaccord Genuity Overhauls U.S. Leadership After $80M Fine

Canaccord Genuity Group Inc., Canada’s leading independent investment bank, restructures its U.S. division leadership following an $80-million settlement with U.S. regulators over compliance shortcomings.

Key Leadership Transition

Jeff Barlow, who led the New York-based U.S. investment banking arm for 11 years, retires effective immediately. He will remain as an advisor to the firm. Toronto-based CEO Dan Daviau assumes temporary oversight of the U.S. division until a permanent successor emerges.

Barlow joined Canaccord in 2007 after 15 years at competing U.S. banks. Under his guidance, the division expanded through acquisitions and key hires, growing to 350 professionals and generating $500 million in annual revenue.

“Jeff is transitioning at a time when this business is stronger than ever and positioned for its next phase of growth,” Daviau stated in an internal memo. “We are grateful to Jeff for his long-standing partnership and contributions.”

Daviau previously headed Canaccord’s U.S. investment banking team from 2012 to 2015 before ascending to CEO, with Barlow succeeding him.

Regulatory Settlement Details

The settlement resolves a three-year probe into compliance failures, including weaknesses in the anti-money-laundering surveillance program. Regulators imposed the largest-ever penalty on a broker-dealer for Bank Secrecy Act violations.

Canaccord committed to a full compliance framework overhaul over the past three years to meet regulatory standards. Penalties came from the U.S. Department of the Treasury’s Financial Crimes Enforcement Network and the Securities and Exchange Commission.

In June 2023, Canaccord flagged a potential major penalty tied to its U.S. equity trading unit. The firm sold that wholesale market-making business to Cantor Fitzgerald LP in April 2025.

Financial Strength and Outlook

The settlement aligned with expectations and failed to impact shares, which rose 38.5% over the past year. Canaccord reviews strategic options for its British wealth management business, managing $74.6 billion in assets and potentially valued over $1 billion in a sale.

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.”

Total assets under management across Canadian, British, U.S., and Australian units stand at $144.8 billion. The U.S. division contributes 21% of investment banking revenue.

Canaccord posts robust results amid a bull market in mining and tech deals. For the first nine months of fiscal 2026 (ended Dec. 31), revenues climbed 24% to $1.6 billion, with adjusted net income surging 48% to $127.8 million.

In June 2023, executives shelved a $1.1-billion privatization bid partly due to regulatory uncertainties. The current team remains intact, with market cap steady at $1.2 billion.