Canaccord reworks U.S. leadership in wake of regulatory settlement

Canaccord Genuity agreed to an US$80 million settlement with market regulators and is reworking leadership of its U.S. division. The settlement and management shake-up at Canada's largest independent investment bank increase regulatory and governance risk and could pressure the stock near term. This is a company-specific negative catalyst likely to move Canaccord shares more than broad market.

Analysis

Canaccord Genuity agreed to an US$80 million settlement with market regulators and is reworking leadership of its U.S. division. The settlement and management shake-up at Canada's largest independent investment bank increase regulatory and governance risk and could pressure the stock near term. This is a company-specific negative catalyst likely to move Canaccord shares more than broad market.