Russian-owned UK broker Sova Capital enters special administration

Steffy Bogdanova
March 4, 2022 11:00 am

London-based broker Sova Capital announced that it is entering special administration. The broker is controlled by Russian banker Roman Avdeev.

Sova Capital’s special administrations regime is due to liquidity problems following a barrage of Western sanctions are aimed businesses with Russian ties hit.

The broker said that its team is working on stabilising the situation in order to protect its customers.

Its official statement said:

You will be aware that Sova Capital is experiencing some liquidity issues arising out of the unusual circumstances currently existing. We should like to inform you, however, that our team is making every effort to stabilise the situation and ensure that business continues smoothly.

UK Financial Conduct Authority (FCA), which regulates Sova Capital, said that the court had appointed Teneo as special administrators and would start assessing client money and custody assets.

The FCA said:

The Special Administrators will write to the firm’s clients with their proposals for the Special Administration within 8 weeks of appointment, this will include the process of how to make a claim.

Western countries have implemented unprecedented sanctions on Russian economy following its invasion of Ukraine. Several Russian banks were excluded from the SWIFT global payments network.

The Federation of European Securities Exchanges announced earlier that it is excluding the Moscow Exchange from its association.

LeapRate Analyst

Experienced writer and journalist, working in the global online trading sector, Steffy is the Editor of LeapRate. She has previous experience as a copywriter and has been with the company since January 2020. Steffy has a British and American Studies degree from St. Kliment Ochridski University in Sofia.
Tags:

Read Also: