Recently, sanctions against Russia by Western countries have affected many companies with ties to Russia. Yesterday (March 3), Sova Capital, a broker operating in the United Kingdom, announced that the company is entering a special management stage due to liquidity problems. Sova Capital is the company of Russian banker Roman Avdeev.
Sova Capital’s FCA Regulation No. 225539, which has been regulated by the UK FCA since 2004, at www.sovacapital.com, the company’s business has been significantly affected by its reliance on Russia and transactions related to Russian assets. After considering the company’s position, the directors concluded that the company was insolvent and applied to the court for a special administration phase. Sova Capital Limited remains authorised by the FCA and remains subject to regulation and the FCA rules. This is because it may be required to conduct regulated activities during special management periods and continue to hold client funds and assets in custody.
The UK’s Financial Conduct Authority (FCA) said David Philip Soden, Ian Colin Wormleighton and Stephen Browne of Teneo have been appointed as special administrators for Sova Capital Limited and will begin assessing client funds and assets under custody.
“The special administrators will write to the firm’s clients within eight weeks of their appointment with their recommendations … which will include the process for how to lodge a claim,” the FCA said.
The West is tightening the economic noose around Russia, shutting down its banks from the SWIFT global payments network and forcing Russian companies to dump billions of dollars in investment after the escalating conflict between Russia and Ukraine.
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