Source: The Canadian Press

Dundee Capital Markets is laying off 16 people as part of a restructuring that stems from the acquisition of parent company DundeeWealth (TSX:DW) by Bank of Nova Scotia (TSX:BNS).

Those laid off include research analysts who cover tech, biotech and portfolio strategy, and sales and trading staff in these areas.

The company refused to comment on whether other layoffs are expected.

The Dundee Capital Markets division is being spun off into a stand-alone publicly traded company, with shares being issued to DundeeWealth shareholders, said spokeswoman Myra Reisler.

“These changes allow the new capital markets business to be more of a specialized entrepreneurial firm focused on the core strengths of the Dundee group of companies, which is the resources sector,” she said.

Last month, Scotiabank paid $2.3 billion to buy the rest of the shares of DundeeWealth that it did not already own. DundeeWealth is a money manager that runs the Dynamic family of mutual funds in Canada.