London Broker Sova Capital Enters Special Administration due to Russian Ties

Sova Capital, a London-based broker controlled by Russian banker Roman Avdeev, said on Thursday it was entering special administration because of liquidity problems, as a barrage of Western sanctions hurts businesses with Russian ties.

"We are committed to acting with integrity at all times and strive to protect the interests of our customers. As such, our contingency planning includes prudent pre-emptive steps designed to decrease any negative impact on our business and clients." Sova, which offers trading and execution services and access to Russian markets, states.

Britain's Financial Conduct Authority (FCA), which still authorises Sova, said Teneo had been appointed as special administrators and would start assessing client money and custody assets.

According to the FCA, the special administrators will write to the firm's clients with their proposals within eight weeks of appointment, this will include the process of how to make a claim.

Western nations are tightening an economic noose around Russia following its invasion of Ukraine, shutting its banks from the SWIFT global payments network and pushing firms to dump billions in investment.