Bank-Analyst Ranks May Thin on EU Research Rules, Deloitte Says
- Report says some independent researchers may quit the market
- Deloitte sees EU commission publishing rules in November
A financial trader points to data displayed on computer screens at a stock exchange in Vienna.
Photographer: Akos Stiller/BloombergThis article is for subscribers only.
European investment banks may reduce the number of analysts they employ and some independent research providers may quit the market if draft European Union rules on how investment managers pay for research are enacted, according to Deloitte LLP.
EU regulators are seeking to break apart existing models of paying for trading and research to ensure that research isn’t used as an inducement to push other business to the provider. Managers will be banned from taking such incentives from brokers under a revamp of EU financial-markets rules due to take effect in 2017.