FSA Statement: ARM Asset Backed Securiries SA

On 29 August 2011 the Luxembourg financial services regulator, the Commission de Surveillance du Secteur Financier (the “CSSF”) announced that it is refusing to grant a licence to ARM Asset Backed Securities SA (“ARM”). ARM will have four weeks in which to appeal.

ARM is a special purpose vehicle based in Luxembourg. It is unregulated but had applied for authorisation to the CSSF – the regulator in its home state. ARM bonds were listed on the Irish Stock Exchange. Its products were marketed in the UK and Europe.

CSSF’s decision means that all payments by ARM are suspended, including redemptions of its bonds and coupon payments.

The Financial Services Authority (FSA) is working closely with the CSSF and the Irish regulator, The Central Bank of Ireland.

The FSA will provide further updates as soon as possible.

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Commission de Surveillance du Secteur Financier – Press Release

The Commission de Surveillance du Secteur Financier (“CSSF”) herewith informs that on 29 August 2011, it has decided to refuse to grant a license to ARM Asset Backed Securities S.A. (“ARM”) as a regulated securitisation undertaking under the Luxembourg law of 22 March 2004 on securitisation (the “Decision”).

The CSSF considers that this Decision, as from the notification thereof to ARM (which has occurred today), entails a suspension of any payment by ARM and prohibition for ARM, under penalty of voidance, to take any measures other than protective measures, unless otherwise authorized by the CSSF acting as supervisory commissioner (“commissaire de surveillance”).

If unchallenged, the Decision will become final one month after its notification. Once the Decision is final, the district court dealing with commercial matters shall, as a consequence thereof, be requested to pronounce the dissolution and order the liquidation of ARM.

Due to the multijurisdictional implications of the file, the CSSF, the Financial Services Authority (FSA) and the Central Bank of Ireland (CBI) are working in close cooperation.

To read the original copy click here.


Dear IFA

We are writing to you in respect of those investors that have subscribed for ARM bonds in Tranches 9 – 11, but have not been issued with such bonds (“Pending Investors”). In addition, we refer to the various communications that we have sent to you and Pending Investors over the last 12 months.

ARM has decided to temporarily suspend the offer to pay refunds to Pending Investors due to a proposed restructuring. ARM intends to provide you and your client with more information on the proposed restructuring before the end of next week. However, please be aware that, from the date of this letter, ARM will suspend all processing of requests for refunds. We would be grateful if you could pass this information on to your client at your earliest opportunity.

Yours faithfully

For and on behalf of the board of directors of ARM Asset Backed Securities S.A.

To read the original copy click here.