FCA regulated emerging markets focused broker Sova Capital has announced that it is entering a period of special administration.

The London based firm, which is controlled by Russian billionaire Roman Avdeev, holds about $2 billion in clients assets and has significant exposure to assets in Russia. As such, the company’s London based directors have decided that the company will have trouble meeting its obligations in the near term, and are bringing in a special administrator to manage the company to minimize disruption to clients.

The full statement put out today by Sova Capital reads as follows:

Sova Capital Business Update

03 Mar 2022

Dear Clients and Counterparties,

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.

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.

The firm is in open and transparent contact with the Regulator – the FCA – which is well aware of the liquidity issues the firm is facing.

We are entering a period of special administration during which the Administrator appointed by the Board will assist in the process of helping Sova Capital manage this difficult situation and fulfill its commitments to clients and counterparties.

We will keep you informed as the situation develops.

We appreciate your continued confidence and patience.

Yours sincerely,

Sova Capital