Citigroup is making a big change to its research business

Citigroup has made a change at the top of its European research business.

Terence 'Terry' Sinclair, the former head of research in Europe, the Middle East and Africa, is moving to a new role, according to people familiar with the matter.

Robert Garlick, who was a global product manager for research, will replace him, according to the people.

Sinclair is a Citigroup veteran, and has run research for five years. He is moving to a new client-facing role as global franchise director, according to the people.

In that role, he will work with clients on how they'll pay for research under new European regulations.

A new set of regulations governing European markets known as MiFID II is due to take effect January 2017, though the European Commission is expected to propose a delay.

The rules have been keenly fought over by financial firms, and are set to reshape how equity research is paid for in Europe, though it remains unclear exactly what the final rules will look like.

The broad outline however is that payments for research will be unbundled from trading commissions, with asset managers having to set up separate accounts for research payments. Research providers will have to quote prices for their research, rather than giving it away freely in the hope of making money back through trading commissions.