Aviva Investors and LGIM sued over alleged Russian discrimination
Aviva said it would be contesting the claim but declined to comment further on legal proceedings.
XTX is majority-owned by Russia-born billionaire Alexander Gerko, who became a British citizen in 2016 and has since renounced his Russian citizenship.
Gerko has lived and worked in the UK since 2006 and was the UK's biggest taxpayer last year. He has publicly criticised the Russian invasion of Ukraine.
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XTX attempted to invest in Aviva Investors' and LGIM's money market funds last year but was refused, with the firm claiming LGIM told it the investment house was taking an «extremely cautious approach» to sanctions compliance.
XTX argued the rejection was discrimination based on its owner's race, which is illegal under the Equality Act, as Gerko is not subject to any international sanctions.
When approached, Aviva said it would be contesting the claim but declined to comment further on legal proceedings. LGIM has been approached for comment but said in court filings that it would be contesting the claims.
XTX has been contacted for comment.
While XTX has not asked the court to award damages, it is seeking court declarations that the firms breached the Equality Act over the alleged discrimination.
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In the lawsuit, XTX said an LGIM employee had emailed the firm in June 2022 saying that it was «currently not onboarding any new clients where there are Russian nationals within the ownership structure».
However, LGIM noted the email was not an accurate reflection of its position and had apologised, while claiming the suit was outside the scope of the Equality Act because it related to an application to invest in
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