At the same time, regulators are telling financial firms such as brokerage firms, asset managers and cryptocurrency platforms that they must comply with drastic economic sanctions against Russia.
In a recent statement, the Canadian Securities Manager (CSA) said all market participants, including registered companies, financial market infrastructure companies and issuers, could be subject to federal sanctions on Russia. I did. Regulators are asking companies to perform due diligence (and consider seeking expert advice) to ensure that they meet their sanctioned obligations.
The CSA indicates that a company may be directly affected by sanctions when dealing with Russian citizens or groups (including assets and property) specifically specified by the sanctions. Companies in the financial sector can also be affected if they make transactions that could encourage a breach of restrictions.
The CSA said that in addition to the prohibition of directly addressing sanctions, it is prohibited to “induce, promote and support prohibited activities.”
In addition, companies are expected to continually determine whether they own assets that are subject to sanctions or are managed on behalf of those subject to sanctions.
At the same time, regulators are aware that the obligations of sanctioned companies may be inconsistent with their commitment to sell from Russia.
The Financial Conduct Authority (FCA) in the United Kingdom has reported that many asset managers and pension funds have already reduced their holdings in Russia to zero and have announced their intention to remove them as much as possible. However, she also acknowledged that selling Russian assets poses a “significant practical challenge.”
To that end, the FCA has issued guidance on how businesses should meet their obligations under economic sanctions.
In addition, UK Finance Minister Rishi Sunak recognizes that the government may be “a long-term process given market conditions and the ability to sell assets due to global sanctions.” I guaranteed it.
But he said the commitment of major energy and financial companies, including fund giant Vanguard, to sell shares in Russia and stop all new investments in Russia signals the Russian government. I emphasized that. The government supports companies that want to sell.
“We must jointly pursue our mission to cause the greatest financial pain and stop further bloodshed,” he said in a statement.
British government officials met with asset managers and institutional investors last week to discuss investing in Russia, he added, “welcome a consensus on the need to financially isolate Putin and his administration. I added.
Rishi Sunak also emphasized that “new investment in Russia is indisputable.”
Elsewhere in Europe, the European Securities and Markets Authority (ESMA) said it is “closely monitoring” the impact of conflicts on financial markets.
The ESMA also called on financial companies to enforce sanctions and issuers to ensure that important information about the impact of the crisis is properly communicated to the market.