A Decade of Invisible Oversight
For nearly nine years, Canaccord Genuity Wealth Management operated under a supervisory system that was supposedly quote “reasonably designed” unquote, but it was actually only in name only. The most damning evidence lies in the firm’s total abdication of its responsibility to review the personal securities transactions of its associated persons. Instead of conducting these reviews itself, the firm offloaded the task to an affiliate.
This affiliate’s review was ridiculously narrow, focusing only on detecting potential insider trading while completely ignoring other forms of market abuse, such as “trading ahead” of the firm’s own customers. Furthermore, the firm failed to establish any policies to check if the affiliate was actually doing the job. This created a massive blind spot where deceptive or manipulative trading could flourish without a single red flag being raised.
Timeline of Systemic Failure
| Period | Nature of Misconduct |
| 2014 – 2023 | Failure to review associated persons’ securities transactions for manipulative or deceptive trading. |
| 2015 – 2020 | Failure to conduct annual supervisory control system testing or obtain required CEO certifications. |
| 2019 – 2021 | Failure to prepare written reports for inspections of six different branch offices. |
| 2020 | Failure to conduct a required inspection of the firm’s office of supervisory jurisdiction. |
Regulatory Capture and the Strategic Use of Delay
In our modern day neoliberal economic system, evil corporations tend to view regulations not as moral boundaries, but as hurdles to be managed in the everlasting pursuit of corporate profits. By failing to perform annual supervisory testing and skipping CEO certifications for five consecutive years, Canaccord bypassed the internal checks meant to root out systemic rot.
This behavior illustrates a common tactic in late-stage capitalism: the exploitation of delay. By operating for years without conducting required branch inspections or maintaining records of oversight, a company can save on labor and administrative costs while the actual risk is pushed onto the public and the customers. When the oversight finally arrives, the resulting fines are often seen merely as a “cost of doing business” rather than a true deterrent.
Profit-Maximization at the Expense of Integrity
This drive for profit-maximization often leads firms to strip away “unproductive” departments, such as compliance and internal audit.
At Canaccord, the failure to produce written reports for branch inspections meant there was no paper trail to verify that policies were being followed. In at least two branches, there were no records at all that an inspection had even occurred.
This lack of documentation is actually a hallmark of corporate greed; if you don’t look for the problem, you don’t have to spend money to fix it. This is also how Trump views employment numbers and readers over the age of 5 years old will remember that he also did this with the statistics on positive COVID cases during the pandemic.
This approach prioritizes corporate profits by reducing the “friction” of regulation, but it leaves the average normie vulnerable to a marketplace where the rules are optional for the powerful and wealthy.
Corporate Accountability Fails the Public
The resolution of this case follows a predictable pattern of legal minimalism. The firm was censured and fined $75,000… a sum that pales in comparison to the revenue generated by any global wealth management entity including Canaccord. Furthermore, the settlement allowed the firm to resolve the matter without admitting or denying the findings.
This outcome reflects a system where the punishment rarely fits the potential harm. When a firm fails to safeguard the market against insider trading for almost a decade, a five-figure fine does little to restore public trust or compensate for the systemic risk introduced to the financial environment. It instead reinforces the idea that under modern day neoliberalism, the law is a tool for management rather than a mechanism for justice and fair play for everyone.
💡 Explore Corporate Misconduct by Category
Corporations harm people every day — from wage theft to pollution. Learn more by exploring key areas of injustice.
- 💀 Product Safety Violations — When companies risk lives for profit.
- 🌿 Environmental Violations — Pollution, ecological collapse, and unchecked greed.
- 💼 Labor Exploitation — Wage theft, worker abuse, and unsafe conditions.
- 🛡️ Data Breaches & Privacy Abuses — Misuse and mishandling of personal information.
- 💵 Financial Fraud & Corruption — Lies, scams, and executive impunity.
