UK regulator the Financial Conduct Authority (FCA) has responded to chancellor Rishi Sunak's call to stop investing in Russia, highlighting that there are "significant practical challenges" in terms of disposing of such assets.
Regulated firms have already taken steps to avoid new investment in the Russian economy, the FCA said in a statement on 13 March.
"Many asset managers and pension providers have written down any Russian assets already held by the fund or scheme to zero, and some have announced that they are intending to divest themselves of such assets when it is practical to do so. Major index providers have taken steps to remove Russian securities from their equity and bond indices.
"There are currently significant practical challenges in terms of disposing of Russian assets. When it is possible to sell such investments, firms should ensure that they meet requirements on entities that are subject to sanctions or connected to sanctioned entities.
To see the FCA's guidance on this issue, click here.
