Well, this is how you have to do business when the central bank is not just the central bank but also the regulator, and able to yank your license on a moment’s notice.

FCA regulated emerging markets focused broker Sova Capital has issued a statement (see full text below) apologizing for an article which one of its employees wrote, which was critical of the Central Bank of Russia and its Chair Elvira Nabiullina.

Earlier this week Sova’s Moscow based head of structured products Anton Grishkin penned a long opinion article which appeared in Russian language business publication VTimes, stating that Ms. Nabiullina and her team at the central bank overreacted by calling for banks to stop selling structured bonds and certain other “complex investment products” to retail customers.

Mr. Grishkin explained that the central bank’s reaction was not so much investor protection, as it was a blow to the market, in the current low interest rate and high-volatility environment.

Sova posted a statement of its website, saying that it expresses its sincere regret that the article appeared, and that the opinion reflected is the employee’s private opinion. The company said it supports the decision of the Russian regulator.

Sova Capital is an FCA authorized and regulated broker based in London and Moscow. The firm offers institutional and corporate clients a full range of investment brokerage services, including independent research, securities trading, electronic and high-touch execution, and public capital markets financing. The company is controlled by Russian billionaire Roman Avdeev.

The full text of the Sova apology (which also appears in Russian on its website) follows:

Statement Regarding the Publication in the VTimes

24 Dec 2020

Sova Capital would like to express its sincere regret for the appearance of its employee’s material in VTimes dated December 22, 2020.

The opinion reflected in this publication is the employee’s private opinion and does not coincide with the company’s official position, which supports the decision of the Russian regulator.

On behalf of the management of the company and its shareholders, we sincerely apologize to the management of the Bank of Russia.