Canaccord Financial Inc. announces reduction to Canadian Wealth Management Platform

Refocusing efforts to service clients in major Canadian centres

Initiative should significantly enhance the performance of the division

TORONTO, Sept. 24, 2012 /PRNewswire/ - Canaccord Financial Inc. (TSX: CF, LSE: CF., 'the Company', 'Canaccord') announces that it is accelerating its strategy to improve the performance of its Canadian wealth management division.  As a result, Canaccord is closing sixteen underperforming branches and refocusing its operations in major centres across Canada.  The consolidation of branches will allow Canaccord to better service its private clients by concentrating its support resources and capital investments in client service activities in its key markets.  This initiative will improve the operating results of this business and will ensure our capital investments in the business will be targeted to regions we see the most opportunity to grow our market share. Sixteen Canaccord Wealth Management branches will continue to serve our valued clients in fourteen cities across Canada.

In addition to the branch consolidation, Canaccord reduced the number of Advisors at its sixteen core locations by approximately 35 Advisory Teams as part of its high-grading strategy. Once this initiative is complete, Canaccord will have approximately 180 Investment Advisory teams across Canada.

Canaccord Wealth Management will continue to offer a full suite of investment and wealth planning services to clients, through both traditional transactional brokerage activities and more comprehensive wealth management solutions.  The business provides a personalized approach to clients' specific wealth management needs, catering largely to the expectations of professionals, business owners, affluent investors and family trusts through focused expertise in wealth, tax, estate and charitable planning.

As of June 30, 2012, $13.1 billion of client assets were administered by Canaccord's Canadian wealth management division.  Of this, only 16% was accounted for by the sixteen branches scheduled to close.  The sixteen branches remaining open accounted for 84%.

"This initiative will allow us to make additional investments in markets where we see the most opportunity for future growth," said John Rothwell, President of Canaccord Wealth Management (Canada). "We can better cater to the needs of our clients through an elite team of Investment Advisors who have demonstrated their abilities to generate meaningful value for our clients, foster long-term client relationships and an enhanced client experience."

After these branch reductions, it is expected Canaccord Wealth Management will operate on a near break-even basis in current market conditions. All branches remaining open have the capabilities to be consistently profitable and Canaccord is committed to their continued success and growth.

Restructuring charges:

Charges related to the consolidation of Canaccord's Canadian wealth management business are expected to total approximately $11.5 million, and will be reflected in Canaccord's fiscal second quarter.  These charges include severance and other charges related to the closing of offices, and are in addition to the previously disclosed restructuring charges related to the consolidation of Canaccord's Montreal Wealth Management office.

Canaccord also announced an addition to its UK wealth management platform today.  Approximately $5.2 million of restructuring and other charges related to the growth of Collins Stewart Wealth Management is expected in Canaccord's fiscal third quarter.

ABOUT CANACCORD WEALTH MANAGEMENT:

In Canada, Canaccord Wealth Management is a leading, independent private wealth management firm, with a network of approximately 180 Investment Advisory Teams located in major centres across the country.  Our Advisory Teams are entrusted with over $10 billion of client assets under administration.  Canaccord investment professionals are recognized for delivering personalized financial solutions for the specific needs of each of our private clients.  With access to financial, estate, and insurance planning specialists, Canaccord Advisors offer a full suite of investment and wealth planning services that help our clients achieve their financial goals.  Through Canaccord Genuity, Canaccord's global capital markets division, Canaccord Wealth Management provides its private clients with access to top-ranked research, equity and bond issues, and private placement opportunities.

In Canada, Canaccord Wealth Management is a division of Canaccord Genuity Corporation, member CIPF and the Investment Industry Regulatory Organization of Canada.

ABOUT CANACCORD FINANCIAL INC.:

Through its principal subsidiaries, Canaccord Financial Inc. is a leading independent, full-service financial services firm, with operations in two principal segments of the securities industry: wealth management and global capital markets.  Since its establishment in 1950, Canaccord has been driven by an unwavering commitment to building lasting client relationships. We achieve this by generating value for our individual, institutional and corporate clients through comprehensive investment solutions, brokerage services and investment banking services.  Canaccord has offices in 12 countries worldwide, including Wealth Management offices located in Canada, Australia, the UK and Europe.  Canaccord Genuity, the international capital markets division, operates in Canada, the US, the UK, France, Germany, Ireland, Italy, China, Hong Kong, Singapore, Australia and Barbados.

Canaccord Financial Inc. is publicly traded under the symbol CF on the TSX and the symbol CF. on the London Stock Exchange.

SOURCE Canaccord Financial Inc.