Canaccord Genuity Group Inc. says it is facing a regulatory investigation that could result in it paying a “significant penalty.”
In a securities filing, the company says the matter stems from a review of its wholesale market-making activities. Further details were not disclosed.
Canaccord said it expects that the issue will be resolved and that it will not have a material impact, but cautioned the ultimate resolution of the matter was not known.
In a separate filing, the company says chair David Kassie plans to step down from his executive management role at the company after its annual meeting on Aug. 4 and retire as chair following the company’s annual meeting next year.
The company announced on June 14 that a proposed management buyout of the firm would not go ahead after key conditions of the offer, including required regulatory approvals, were not received by the offer’s expiry time.
The company warned in May that a regulatory issue with one of its foreign subsidiaries could hold up the deal and that it was unlikely to receive approval for the buyout in time.