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Banks rebuild equity research teams after MiFID battering

After years of cuts, analyst headcount at major institutions is creeping back up

The EU’s MiFID II trading rules required brokers to charge fund management clients for research separately from any trading fees
The EU’s MiFID II trading rules required brokers to charge fund management clients for research separately from any trading fees Photo: Nicolas Economou/Getty Images

European investment banks and brokers are expanding their equity research operations, four years after steep cutbacks due to new European Union rules governing how they are paid.

The number of equity analysts at major firms rose by 1% in 2021, after cumulative cuts of more than 12% over the previous three years, according to a survey by Substantive Research, a research consultancy.

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