Canadian investment bank, Canaccord Genuity, recently announced that it had added three experienced equity research analysts to its UK-based Financials research. Management noted that MiFID II was part of the rationale for this expansion.
New Canaccord Research Hires
Following a 25 year career as a London-based sell-side research analyst, Joanna Parsons joins Canaccord Genuity covering insurance and specialty financials companies. Prior to joining Canaccord, Ms. Parsons spent over 6 years at Stockdale Securities where she was Executive Director and Head of Research. Previous to her stint at Stockdale, she spent 11 years at RBS Global Banking and Markets, where Ms. Parsons was Head of UK Mid-Market Research. Earlier in her career, Ms. Parsons worked at HSBC for 8 years where she was an insurance analyst. In 2017, she was ranked #1 Earnings Estimator for the Insurance sector by Thompson Reuters and she was also voted Analyst of the Year by the insurance industry in the 2015 Reactions London Market Awards.
Justin Bates joins Canaccord Genuity following more than 20 years as a financial sector analyst. Previously, Mr. Bates was Head of Diversified Financials at Liberum Capital, where his team was ranked 2nd in the 2017 Extel rankings. Prior to his role at Liberum, Bates spent 4 years as an analyst covering European Financials at Keefe Bruyette & Woods. Previously, Justin was also Head of Financials research for Numis Securities where he spent 6 years. Mr. Bates started his career as a member of the Financials and insurance team at ING Groep N.V. in 1997.
Portia Patel recently joined Canaccord Genuity following more than 6 years as an equity research analyst covering Diversified Financials. Most recently, Ms. Patel spent almost two years covering UK specialist banks and lenders, asset and wealth managers, IDBs and exchanges for Liberum Capital. Previously she worked for more than 4 years covering European diversified financials at RBC Capital Markets in the UK.
Alexis de Rosnay, Chief Executive Officer of Canaccord Genuity Limited, UK & Europe explained these three hires, “These strategic additions to our team represent an important development for our capital markets business at a time when we are seeing increasing opportunities to bring companies to market and help them become more globally successful. In a post MiFID II environment, we have placed a strong focus on strengthening our core capabilities in key sectors and delivering a focused, actionable equity research product that adds value for our investing clients.”
Canaccord Genuity employes more than 80 research analysts globally covering approximately 1,000 emerging growth stocks in the Blockchain & Digital Assets, Business Services, Cannabis, Consumer & Retail, Energy, Financials, Gaming, Healthcare, Industrials, Metals & Mining, Real Estate, Sustainability, and Technology sectors.
The hiring of three experienced Financials analysts like Ms. Parsons, Mr. Bates, and Ms. Patel are great additions to Cannaccord’s UK research team. However, management’s acknowledgement that MiFID II was part of the reason for these new hires reveals that the company has changed its view on the value of investing in its research franchise. In 2015, the company explained a few analyst layoffs by citing the pressures likely to arise due to MiFID II.
Obviously, Canaccord management is beginning to see that it will need an experienced research team to justify significant research payments from the buy-side in a post MiFID II environment. The big question is whether this new strategy of beefing up its research team with more experienced talent will result in higher research payments after all. We will have to wait and see.