(Bloomberg) -- IA Financial Corp. is cutting jobs in its capital markets business, ending its institutional activities — including equity research — amid bumpy markets.

“We are stopping all institutional operations within IA Capital Markets,” spokesperson Pierre Picard said in an email in response to inquiries from Bloomberg News. As a result, the company, based in Quebec City, will eliminate more than a dozen jobs, he said.

IA Financial is making the cuts at a time of sweeping changes in the finance job market. Within Canada, Royal Bank of Canada pushed ahead with a round of layoffs in its capital markets unit, part of broader reductions announced in August. In June, Bank of Montreal’s capital markets division trimmed about 100 positions, or 3.5% of the division’s staff, in response to a weak environment for deals.   

“We are deeply committed to ensuring Canadian investors continue to have deep and broad access to the professional, independent (unbiased) financial advice and investment solutions that are the hallmark of IA Wealth,” Picard said in an email.

The distribution of IA Capital Markets research will end immediately, according to an email sent to clients. The firm will focus on its other services, which include financial advice and asset management for individual investors. 

Picard said the move was prompted by market conditions that have been “very challenging over the last two years with rising interest rates” and a lack of corporate deal flow.

IA Financial fell 2.6% in Toronto, one of the biggest drops in the 28-member S&P/TSX Financials Sector benchmark. 

(Adds context of the decision starting in third paragraph)

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