Analyst jobs rout likely as EU tackles conflicts of interest, report shows
Brussels — Europe’s impending ban on free research will cost hundreds of analysts their jobs with banks set to cut about $1.2bn of investment on the area, according to a report by McKinsey & Co. The consultancy estimates the $4bn that the top-10 sell-side banks spend on research annually is likely to fall 30% as clients become pickier about what they pay for, McKinsey Partner Roger Rudisuli said in an interview. Investment banks’ cash equity research headcount has fallen 12% to 3,900 since 2011 compared with as much as 40% in sales and trading, leaving the area facing "big cuts" to catch up, he said. "Two to three global banking players will preserve their status in the new era, winning the execution arms race and dominating trading in equities around the globe," McKinsey said in a report on Wednesday, which Rudisuli helped write. "Over the coming five years, banks will need to make hard choices and play to their strengths. Not only will the top ranks be thinned out, there will be s...
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