By Britain, Luxembourg weigh ‘side pockets’ for sanctioned Russian assets
© Reuters. Signage is seen for the FCA (Financial Conduct Authority), the UK’s financial regulatory body, at their head offices in London, Britain March 10, 2022. REUTERS/Toby Melville
LONDON (Reuters) – Britain’s financial watchdog said on Wednesday it has begun discussions with the asset management sector on using “side pockets” for parking Russian and Belarusian assets which have been suspended due to sanctions.
Side pockets would allow a fund to separate suspended assets that are difficult to sell or value, from other core investments.
“The FCA has begun discussions with stakeholders about options to allow UK authorised retail funds to make exceptional use of ‘side pockets’ given the significant practical challenges in disposing of Russian and Belarusian assets in the context of suspensions and extensive global sanctions,” the Financial Conduct Authority said in a statement.
UK finance watchdog studies “side pockets” for parking sanctioned Russian assets
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