Independent Canadian investment dealer GMP Capital Inc. is pulling out of the United Kingdom and Australia and suspending its quarterly common share dividend to deal with the effects of weak commodity prices and increasing regulation.
Offices in London, Perth and Sydney will be closed, and 97 jobs will be cut, representing a 25 per cent reduction in head count.
In Canada, sales, trading and research franchises will be streamlined “in response to permanent structural and regulatory changes across the industry,” GMP said in a statement Wednesday.
“Our actions today arise from an exhaustive review of all aspects of our Capital Markets business,” said Harris Fricker, GMP’s chief executive.
“They represent a substantive response to both the structural changes in our industry, via technology-driven disintermediation and increased regulation, and the sustained trough in the global commodity cycle.”