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The Company anticipates a unified resolution in connection with its previously disclosed U.S. regulatory enforcement matters in the coming months
Extensive remediation and compliance transformation substantially completed
Canaccord Genuity Group Inc. (TSX: CF) (the "Company") today announced through its U.S. business Canaccord Genuity LLC ("CG LLC") it continues to actively pursue a unified resolution of its previously disclosed regulatory enforcement matters (the "enforcement matters") by its U.S. regulators.
In anticipation of a unified resolution with its US regulators, the Company has increased its provision by US$ 55.0 million [C$76.6] million to US$ 75.0 million [C$104.4 million] in its financial results for the second fiscal quarter ended September 30, 2025, to reflect the Company's current estimate of total monetary penalties related to an expected resolution of its U.S. regulatory enforcement matters. The Company's estimate of the total monetary penalties is based on management's judgement and information available to the Company at this time.
Over the past three years, CG LLC has substantially invested in a comprehensive compliance transformation aimed at aligning with regulatory standards and remediating its existing program. The Company looks forward to continuing to work constructively with its regulators towards a resolution.
CAUTION REGARDING FORWARD-LOOKING STATEMENTS
This press release may contain "forward-looking information" as defined under applicable securities laws ("forward-looking statements"). These statements relate to future events or future performance and reflect management's expectations, beliefs, plans, estimates, intentions and similar statements concerning anticipated future events, results, circumstances, performance or expectations that are not historical facts, including discussions with regulators regarding a resolution of U.S. regulatory matters, future business growth, business and economic conditions and Canaccord Genuity Group's growth, results of operations, performance and business prospects and opportunities. Such forward- looking statements reflect management's current beliefs and are based on information currently available to management. In some cases, forward-looking statements can be identified by terminology such as "may", "will", "should", "expect", "plan", "anticipate", "believe", "estimate", "predict", "potential", "continue", "target", "intend", "could" or the negative of these terms or other comparable terminology. By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and a number of factors could cause actual events or results to differ materially from the results discussed in the forward-looking statements.
In evaluating these statements, readers should specifically consider various factors that may cause actual results to differ materially from any forward-looking statement. These factors include, but are not limited to, market and general economic conditions; the dynamic nature of the financial services industry; the inherent uncertainty around regulatory approvals, and the risks and uncertainties discussed from time to time in the Company's interim condensed and annual consolidated financial statements, its annual report and its annual information form ("AIF") filed on www.sedarplus.ca as well as the factors discussed in the sections entitled "Risk Management" and "Risk Factors" in the AIF, which include market, liquidity, credit, operational, legal and regulatory risks.
Although the forward-looking statements contained in this press release are based upon assumptions that the Company believes are reasonable, there can be no assurance that actual results will be consistent with these forward-looking statements. The forward-looking statements contained in this press release are made as of the date of this press release and should not be relied upon as representing the Company's views as of any date subsequent to the date of this press release. Except as may be required by applicable law, the Company does not undertake, and specifically disclaims, any obligation to update or revise any forward-looking statements, whether as a result of new information, further developments or otherwise.
SOURCE Canaccord Genuity Group Inc.
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