The Globe and Mail reports in its Friday edition that Canaccord Genuity Group is facing a potentially "significant penalty" related to its wholesale market-making business. The Globe's James Berkow writes that Canaccord expects that a probe into its market-making activities "will be resolved in the ordinary course and expects that the resolution of the enforcement matter will not have a material impact." It is not clear where the market-making investigation was taking place. In a separate filing, Canaccord said board chairman David Kassie will step down from his executive management role after the company's Aug. 4 annual general meeting and step down as chairman one year later. Over the past four months, Canaccord shares have fallen from a mid-February high of $11.80 to a Wednesday closing price of $8.27, a decline of about 30 per cent. The regulatory statement filed Wednesday said the company "may incur a significant penalty and additional costs related to its business or become subject to other terms or conditions that may adversely impact its business" with the market-making investigation. Canaccord more than tripled its provisions for legal issues for its most recent fiscal year.