Canaccord Genuity Group Inc. is shutting down rumours that it’s planning to sell its wealth management business in the U.K. and Crown Dependencies.
The company said in a statement Tuesday that it doesn’t comment on rumours or speculation, but felt it was warranted given that a U.K.-based media outlet posted a story “containing information credited to anonymous sources not known to the company.”
That outlet is The Financial Times. On Tuesday morning, it published an article that said Canaccord is working with bankers to undertake a strategic review of its U.K. wealth management business, which could lead to a sale of the division that had $63 billion in client assets as of Sept. 30.
FT reported that Canaccord and London, U.K.-based boutique investment bank Fenchurch Advisory “are assessing the future of Canaccord Genuity Wealth Management UK, according to two people familiar with the situation.” Potential outcomes of this review, the article noted, range from an outright sale of the business to bringing another investor on board.
Canaccord refuted the report.
“The company wishes to confirm that there is no plan to sell its wealth management business … and that it continues to have a productive working relationship with its strategic and financial partner,” it said in the statement.
“We are proud of the value that all our wealth management businesses have created and are fully committed to their continued growth.”
Canaccord added that it “regularly explores opportunities to strengthen the value of its business.”
“We routinely engage with external advisors to assess market conditions and opportunities across our global business,” the company said.
In its latest quarterly earnings report, Canaccord reported $110.4 billion in client assets under management for the period ended Sept. 30, a year-over-year increase of 18.3% and reflecting year-over-year increases of 13.1% in Canada, 37.6% in Australia and 19.8% in the U.K. and Crown Dependencies.
During the quarter, the company also completed the acquisition of Cambridge, U.K.-based Cantab Asset Management and announced that it entered into a binding agreement with London, U.K.-based Brooks Macdonald Group plc to acquire its subsidiary, Brooks Macdonald Asset Management.