Mr. Michael Auerbach reports

CANACCORD GENUITY GROUP INC. ANNOUNCES FINAL SETTLEMENTS OF PREVIOUSLY DISCLOSED U.S. REGULATORY ENFORCEMENT MATTERS

Canaccord Genuity Group Inc.'s U.S. broker-dealer subsidiary, Canaccord Genuity LLC, has entered into final settlement agreements with the U.S. Securities and Exchange Commission, the Financial Industry Regulatory Authority (Finra) and the Financial Crimes Enforcement Network (FinCEN).

The settlements reflect constructive dialogue with the regulators and resolve all previously disclosed enforcement actions related to these matters.

The total settlement amount is $80.0-million (U.S.) ($109.4-million (Canadian)), of which $5.0-million (U.S.) ($6.8-million (Canadian)) is suspended pending the delivery of a satisfactory suspicious activity reporting look-back review pursuant to the terms of the FinCEN consent order. The company expects the resulting financial impact of the settlement to be $75.0-million (U.S.) ($102.6-million (Canadian)), all of which has been previously accrued. As a result, the company does not expect the settlement to have any material impact on its continuing financial position or results of operations.

"The board is satisfied that these regulatory matters are now resolved and that the underlying conduct is in our past," said Michael Auerbach, lead independent director of Canaccord Genuity Group. "Since these matters came to light, we have overseen a wholesale change in compliance leadership and oversight, working closely with management to enhance the culture of compliance, while engaging constructively with regulators. This reflects our responsibility to all stakeholders and our enduring commitment to maintaining trust, transparency and sound governance."

Over the past three years, Canaccord Genuity LLC has undertaken a comprehensive transformation of its compliance framework to address these matters and more fully align with regulatory expectations, including:

• Substantial investment in compliance transformation;

• Wholesale change in compliance leadership and an increase in supervisory personnel and compliance staffing;

• Updated surveillance reports and new surveillance tools;

• Revised processes for suspicious activity identification, investigation and reporting;

• Retention of third party consultants to conduct a comprehensive review of its anti-money-laundering (AML) program.

New supervision and review protocols

The enforcement matters relate to non-core trading businesses in the company's U.S. operations and the company has taken decisive steps to meaningfully reduce the risk profiles of those businesses. Importantly, the company's core U.S. investment banking, mergers and acquisitions, and advisory, equity underwriting, private placement and equity research businesses were not implicated by these matters and all operations in these areas remain fully active and unaffected.

We seek Safe Harbor.