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 shortcomings.
Key Leadership Transition
Jeff Barlow, who headed the New York-based U.S. investment banking operations for the past 11 years, retires effective immediately. An internal memo confirms Barlow will continue advising the firm during the transition.
Toronto-based CEO Dan Daviau assumes temporary oversight of the U.S. division as the company searches for Barlow’s successor. Daviau praised Barlow’s tenure, stating, “Jeff is transitioning at a time when this business is stronger than ever and positioned for its next phase of growth.” He added, “We are grateful to Jeff for his long-standing partnership and contributions.”
Daviau previously led Canaccord’s U.S. investment banking team from 2012 to 2015 before ascending to CEO, with Barlow succeeding him.
Settlement Details
Earlier this month, Canaccord settled a three-year probe by U.S. regulators, including the Financial Crimes Enforcement Network, Securities and Exchange Commission, and Treasury Department, for violations of the Bank Secrecy Act. Issues centered on weaknesses in the firm’s anti-money-laundering surveillance.
Regulators described the penalty as the largest ever against a broker-dealer for such violations. Canaccord committed to a full compliance overhaul over the past three years to meet regulatory standards.
Prior disclosures in June 2023 flagged a potential major fine tied to the U.S. equity trading arm’s wholesale market-making unit, which Canaccord sold to Cantor Fitzgerald LP in April 2025.
U.S. Division Growth Under Barlow
Barlow joined Canaccord in 2007 after 15 years at competing U.S. banks. He drove expansions through acquisitions and hires, growing the division to 350 professionals generating $500 million in annual revenue—now the firm’s largest unit, contributing 21% of investment banking revenues.
Financial Strength and Outlook
The settlement, long anticipated, had minimal impact on shares, which rose 38.5% over the past year. Canaccord reports robust performance amid a bull market fueled by mining and tech deals.
For the first nine months of fiscal 2026 (ended Dec. 31, 2025), revenues climbed 24% to $1.6 billion, while adjusted net income surged 48% to $127.8 million. Total assets under management across Canada, U.K., U.S., and Australia reached $144.8 billion.
Attention now shifts to strategic moves, including a review of the U.K. wealth management business ($74.6 billion in assets), eyed for a potential sale exceeding $1 billion. Analyst Jeff Fenwick at ATB Cormark 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.”
In June 2023, executives halted a $1.1-billion privatization bid amid regulatory uncertainty. The leadership team remains intact, with market capitalization steady at about $1.2 billion.
