AMSTERDAM (Reuters) - Dutch cooperative Rabobank [RABO.UL] has agreed a deal with Kepler Cheuvreux [KEPLR.UL] to outsource its equity research and brokerage business to Europe’s largest independent broker, as tougher regulation drives consolidation in the sector.
Rabobank will buy a 5 percent stake in Kepler for an undisclosed sum as part of the deal, the Dutch bank said in a statement on its website on Tuesday. It will shed its own equity research and brokerage team.
Around 15 Rabobank analysts and 15 traders will lose their jobs as a result, spokesman Hendrik Jan Eijpe said.
New European rules require fund managers to disclose separately what they pay for research and what they pay for trading commissions, making some reluctant to continue paying for research.
Rabobank, which is the Netherlands’ largest mortgage and agricultural lender and competes with ABN Amro and ING, in December announced plans to shed 9,000 jobs, a fifth of its workforce, and sell as much as 150 billion euros (114 billion pounds)worth of assets on its balance sheet by 2020.
($1 = 0.8827 euros)
Reporting by Toby Sterling; Editing by Biju Dwarakanath and Louise Heavens