Equities research industry could face shake-up as new EU directive looms

(July 24): As Corrine Png rose through the ranks as a sell-side equities analyst, she found herself getting bogged down with administrative and marketing duties that left her with less and less time to do in-depth research on companies she covered.

And, with banks and brokerages keeping a tight rein on their budgets for research in the face of sinking commissions and trading volumes, she feared that the sell-side research industry would gradually lose its relevance.

“[Banks] have to do more with less. Because research budgets come down, the trend of downsizing will continue,” she tells The Edge Singapore. “You are going to end up with analysts who are generalists, rather than being specialised. And, when the experienced analysts leave, they would be replaced by the cheaper, junior analysts.”

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