ROCKINGHAM UPDATE ON ARM ASSET BACKED SECURITIES S.A.

Catalyst/ARM

We have this afternoon received the following release from ARM which has been posted onto the Irish Stock Exchange. No further information has been provided by ARM or Catalyst at this time.

Company name

ARM Asset-Backed Sec

Headline

Challenge of CSSF Decision

RNS Number : 3413P

ARM Asset-Backed Securities S.A.

 

30 September 2011

 ANNOUNCEMENT 

 ARM Asset Backed Securities S.A.

Challenge of CSSF Decision

 

The Board of Directors of ARM Asset-Backed Securities S.A. (“ARM”) has decided to challenge the Commission de Surveillance du Secteur Financier’s (“CSSF”) decision to refuse to grant a licence to ARM as a regulated securitisation undertaking under Luxembourg Law. As a first step, ARM has requested that the CSSF reconsider its decision in accordance with the administrative law of Luxembourg (“recours gracieux“). Should this not lead to a satisfactory outcome, a full review (“recours au fond”) by the Administrative Courts in Luxembourg will be initiated.

 

After careful consideration, the ARM board has concluded that challenging the CSSF’s decision is a protective measure in the best interests of its investors. It views the appointment of a liquidator as a decision that is not in the best interests of investors in light of the circumstances.

 

The CSSF considers that the refusal to grant a licence entails a suspension of any payment by ARM and a prohibition for ARM to take any measures other than protective measures, unless authorized by the CSSF acting as supervisory commissioner (“commissaire de surveillance”). ARM intends to challenge this position, but until the CSSF revises its position on this point or is ordered to do so, ARM will remain under the supervision of the CSSF. As a result, all payments by ARM have been suspended and ARM has been prohibited from acting with the exception of “protective measures”, unless otherwise authorised by the CSSF (acting as supervisory commissioner). Therefore, ARM will not be able to make coupon payments on 1 October 2011. No redemption requests can be processed and no refunds can be made to pending investors.

 

ARM will endeavour to work closely with the CSSF through this difficult time. ARM will continue to liaise with Insetco regarding its offer to acquire the assets of ARM, of which the CSSF has full knowledge, and ARM will look to provide its investors with full details of the offer as soon as it is permitted to do so.

 

The matter will be re-assessed one month following the CSSF’s reply.

 

Enquiries: Catalyst investment Group  0044 (0) 2073671234

 

This announcement has been issued through the Companies Announcement Service of

the Irish Stock Exchange.

FSA

The FSA have advised that they have no further comment to make at the present time.

CSSF

We have had no contact from the CSSF today

We have advised the CSSF today that more than 30 bondholders wish to meet with their representative to discuss the current position. As a result we have asked that a representative of the CSSF attend a meeting of bondholders in London within the next 14 days. We have not received an answer to this request at the time of posting.

Rockingham Independent Ltd.

We are awaiting a response from the CSSF and ARM in relation to the above press release. Our understanding is that the Insetco proposal letter is once again back with the CSSF and we are hoping that this will be released for Bond Holders  consideration in the near future.

We are also trying to ascertain process and timescales involved following the ARM board decision to challenge the liquidation.

As you are aware we were hoping that more information would be available to bondholders today in light of yesterdays deadline but this has unfortunately not been the case. We will of course post any new information for bond holders as soon as it is available.

Rockingham ‘ARMhelp’ Support Team.

ROCKINGHAM UPDATE ON ARM ASSET BACKED SECURITIES S.A.

Catalyst/ARM

We have not received any updated communication from ARM in the last 24 hours although we believe that ongoing discussions with the CSSF are continuing.

FSA

The FSA have advised that they have no further comment to make at the present time.

CSSF

We have had no contact from the CSSF today apart from the fact that the Insetco offer letter has been passed back once again to ARM for amendment.

We have advised the CSSF today that more than 30 bondholders wish to meet with their representative to discuss the current position. As a result we have asked that a representative of the CSSF attend a meeting of bondholders in London within the next 14 days. We have not received an answer to this request at the time of posting.

We have also received a large number of questions for the CSSF to address which we will be posting for the benefit of all bondholders tomorrow.

Rockingham Independent Ltd.

We are currently being kept out of the information loop with regard to the CSSF the FSA and the Board of ARM securities.

We understand that negotiations are ongoing and we hope to provide investors with a more comprehensive update tomorrow,

Rockingham ‘ARMhelp’ Support Team.

ROCKINGHAM UPDATE ON ARM ASSET BACKED SECURITIES S.A.

Catalyst/ARM

We have not received any updated communication from ARM in the last 24 hours although we believe that ongoing discussions with the CSSF are continuing.

FSA

The FSA have advised that they have no further comment to make at the present time.

CSSF

We have had no contact from the CSSF today.

During our discussions with the CSSF yesterday their representative was keen that we advise bondholders that placing of the ARM bond into liquidation did not mean that Bond assets and invested capital would be lost. They also advised that the  appointed liquidator would be a specialist in life settlements whose core responsibility would be to work with the existing fund managers and counterparties to ensure that any future restructuring is for the benefit of all investors and bondholders.

Rockingham Independent Ltd.

We have received a number of requests for Bondholders to attend a meeting with the CSSF and we will be arranging this over the next couple of days.

We have also written today following our discussions with the CSSF yesterday requesting confirmation of when the Insetco Information letter will be sent to Bondholders for their consideration. At the time of posting we have not received a response to this request.

We are collating a number of questions to be answered by the CSSF if you have any questions you would like to ask directly please can you send these to us by midday tomorrow and we will publish the final set of questions on this site tomorrow afternoon.

Rockingham ‘ARMhelp’ Support Team.

ROCKINGHAM UPDATE ON ARM ASSET BACKED SECURITIES S.A.

Catalyst/ARM

Further to the CSSF notice being posted on their website (See below) we have asked ARM via Catalyst to provide a response to all bondholders as soon as possible. We have been advised by ARM that the Client communication letter promised some two weeks ago is still with the CSSF at their request for further comment.

ARM have also advised that they intend to fully respond to Bond holders as soon as possible once they have received the appropriate permissions and agreements to do so.

Discussions between ARM and the CSSF are ongoing and further details will be provided by ARM in due course.

FSA

Details of the FSA supervisory report (August 2010 released September 2011)  re Catalyst have been provided on this site earlier today. The FSA have advised that they have no further comment to make at the present time.

CSSF

The CSSF have made contact with Rockingham today and have requested that we relay the information that they remain in daily talks with ARM and are working closely to ensure that an accurate client communication is sent to all investors outlining all options as soon as possible.

The CSSF have also advised that they would be willing to meet with a contingent of Bondholders and representatives from Rockingham over the next couple of weeks please can you let us know by e mail if you would like to be included.

In addition the CSSF have offered the opportunity to directly answer questions from Bond holders. We are currently collating the questions and will forward these over the next few days. If you have a specific question please can you e mail us at Rockingham and we will ensure that it is passed on.

Rockingham Independent Ltd.

We are continuing to obtain as much information as possible for bondholders but are finding the current situation very difficult to ascertain an accurate view of the current position.

We are currently receiving a large number of calls and e mails from concerned investors but unfortunately we currently do not have clear answers to your specific questions. May we ask that you refer to this website for the daily update at 4.30 so we can keep all bondholders informed on the same basis.

Rockingham ‘ARMhelp’ Support Team.

Regulatory Update

FSA Catalyst Investment Group Supervisory Notice: August 2010 suppressed until 15th September 2011

 We would like to bring to bondholders attention a  supervisory notice regarding Catalyst Investment Group that was posted onto the FSA website on the 15th of September 2011. This notice was posted without notification being given to Rockingham or ARM bondholders by the FSA.

 The 14 day grace period offered in August 2010 coincides with the dates when ARM and Catalyst anticipated that Assured Risk Mitigation plc would be able to issue bonds from Dublin in substitution for ARM. Indeed to our knowledge Assured Risk Mitigation was in a position to issue at the end of August but was then temporarily prevented from doing so within a few hours by the Irish Authorities pending further clarifications. This situation then instigated the long delay with the Irish authorities.

 As the FSA have kept this supervisory notice under wraps for so long after their own trigger date it would appear that they were also of the opinion that the transfer to Ireland would be achieved and the programme could resume normally.

 The effects of the FSA’s actions however has led to a blanket silence being imposed on ARM Catalyst and the Regulator whilst Rockingham has not been kept in the loop as to the regulatory position on Catalyst Investment group or ARM.

This in turn has led to us not being able to provide information to Bondholders in relation to Catalyst / ARM in the supervisory notice until now.

Here is the extract from the FSA web site and a copy of the supervisory notice.

Note: this First Supervisory Notice took effect on 17 August 2010.

For the reasons set out at paragraphs 5.7 – 5.8 of that Notice, it was not published at that time. For the reasons set out below, it was published on 15 September 2011.

As reflected in paras 5.7 – 5.8 of the Notice, the FSA is required by section 391(5) to 391(6) of the Financial Services and Markets Act 2000 (‘FSMA’) to publish such information about the matter to which a supervisory notice relates as it considers appropriate, unless such publication would in its opinion be unfair to the firm to which the requirement applies or prejudicial to the interests of consumers. In August 2010, the FSA took the decision that publication of information about the matter to which this supervisory notice relates would have been prejudicial to the interests of consumers, since it was likely that publication of the notice would have precipitated redemptions which would have had a detrimental effect on the value of the portfolio, and consequently on the returns available to investors as a whole. As such, the notice was not published.

On 29 August 2011, the Luxembourg financial regulator, the Commission de Surveillance du Secteur Financier (CSSF) announced its refusal to grant a license to ARM Asset Backed Securities SA’s (‘ARM’). The CSSF’s decision not to authorise ARM means all payments by the firm are suspended, including redemptions of its bonds and coupon payments. ARM has until the end of September to appeal this decision and unless it is successful a Luxembourg court will place the firm in liquidation.Accordingly, the reason that the FSA did not publish information when the notice first came into effect, prejudice to the interests of consumers through a potential precipitation of redemptions, no longer exists. As this reason has fallen away, and there is no other reason under s.391(6) FSMA to not publish the notice, the FSA has decided to publish the notice in full . The FSA considers that it is appropriate to publish the notice in the present circumstances in view of the FSA’s general policy of being an open and transparent regulator and the FSA’s regulatory objective of promotion of confidence in the UK financial sector.

And here is the link to the supervisory notice.

ROCKINGHAM UPDATE ON ARM ASSET BACKED SECURITIES S.A.

Catalyst/ARM

Further to the CSSF notice being posted on their website (See below) we have asked ARM via Catalyst to provide a response to all bondholders as soon as possible. We have been advised by ARM that the Client communication letter promised some two weeks ago is once again with the CSSF at their request for further comment.

ARM have also advised that they intend to fully respond to Bond holders as soon as possible once they have received the appropriate permissions and agreements to do so.

FSA

The FSA continue to advise that any relevant information in conjunction with the ARM Bond, Catalyst Investment Group or their ongoing dialogue with other European Regulators will be immediately notified to Rockingham for inclusion on this update.

Rockingham would like to advise that notification of the CSSF update on Friday evening was provided by the FSA to Rockingham and not directly from the CSSF.

CSSF

The CSSF made the following posting on their website late on Friday evening:

Commission de Surveillance du Secteur Financier

COMMUNIQUE DE PRESSE 11/31

ARM ASSET BACKED SECURITIES S.A. (“ARM”)

FREQUENTLY ASKED QUESTIONS

1. Who is ARM ?

ARM is a securitisation undertaking governed by the Luxembourg law of 22 March 2004 on securitisation (the “Law”). It has been issuing bonds from Luxembourg since 2006 pursuant to a base prospectus first approved for the purposes of the prospectus directive 2003/71/EC on 3 August 2007 by the Irish Stock Exchange (and amended by subsequent base prospectuses issued and approved since that date). However, ARM has never obtained a licence from the CSSF nor been subject to its prudential supervision.

2. When does a Luxembourg securitisation undertaking need to apply for a licence?

Securitisation undertakings governed by the Law must be authorised and supervised by the Commission de Surveillance du Secteur Financier (the “CSSF”) if they fulfil the criteria of the Law, i.e. as soon as they issue securities to the public on a continuous basis.

3. How did the licence application proceed?

Before applying for the legally required licence, ARM had been issuing bonds to the public for over 2 years (the “Application”) without having the required authorization by the CSSF.

The CSSF then instructed ARM to stop issuing further bonds, pending its decision as to ARM’s Application. However and despite the CSSF’s instruction, ARM had continued to collect monies from new investors (the “Pending Investors”).

When ARM was informed by the CSSF that it would not be in a position to grant a licence, ARM committed to relocate within a short period of time to Ireland where, according to ARM, a licence would not be needed. However, as of the date of the Decision, as defined below, such relocation has still not occurred.

In July 2011, ARM was unable to honour redemption/refund requests and was late on coupon payments.

On 29 August 2011, the CSSF decided to refuse to grant a licence to ARM as a regulated securitisation undertaking under the Law (the “Decision”).

4. What are the consequences of the CSSF Decision?

The Decision 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”).

5. What is a suspension of payments / What will happen to my investment ?

There are various types of suspension of payments. Generally speaking, a suspension of payments is only a temporary measure the purpose of which is to postpone or delay all payment obligations of a person/company until further notice.

In the case of ARM, the suspension of payments is an automatic legal consequence of the CSSF Decision and designed to ensure equal treatment of all of ARM’s investors and creditors, until the appointment by the court of a liquidator.

In practice, this means that no coupon payments will be made, nor any redemption/refund requests paid until after the court has appointed a liquidator.

6. When will the court appoint a liquidator?

Provided the CSSF Decision is not challenged, the Luxembourg public prosecutor will request the court to appoint a liquidator one month after the CSSF Decision has become final. It will become final one month after it was served to ARM (which occurred on 29 August 2011).

If the CSSF decision is challenged, a liquidator will only be appointed if and after the administrative courts confirm the CSSF Decision. The court process could take several years.

7. Will there be a firesale?

The CSSF would expect the court appointed liquidator to take into consideration the specific nature of the underlying assets of ARM’s portfolio, i.e. senior life settlement policies, and to propose an adequate liquidation process to the court taking this feature into consideration, thus applying for an orderly wind-down of ARM’s portfolio, akin to a restructuring within ARM, or a transfer of ARM’s assets into a new entity, via a restructuring.

8. What are the CSSF’s main concerns with respect to granting a licence to ARM?

The CSSF considers that the conditions for granting a licence were not fulfilled for the following reasons:

the extended issuing activity in breach of legal and regulatory provisions ;

ARM’s inability and/or unwillingness to comply with prudential and legal requirements; the CSSF’s prudential concerns related among others to the adequacy of ARM’s liquidity risk management and the lack of a permanent liquidity facility;

the continued collection of new investor funds after the CSSF’s prohibition to issue new bonds and its consequences as described in the next item ;

uncertainty as to the rights of Pending Investors, including the nature thereof, and the resulting concerns as to an appropriate use of Pending Investors’ funds in the past ;

ARM’s fee structure which the CSSF considers to have been detrimental to its financial position and the non-transparent disclosure thereof; and

the deteriorated financial situation which has had as a consequence the late payment of the July 2011 coupons and the incapacity to honour redemption/refund requests which fell due on 1 July 2011 .

9. Did the CSSF consider the impact on investors before taking the Decision?

The CSSF considered taking its Decision very carefully, including the potential effect on investors. The scale of the prudential and legal issues identified by the CSSF and the need to safeguard existing and Pending Investors’ assets and ensure an orderly wind down or transfer of ARM’s business under the control of the court meant that taking the Decision was deemed to be the best course of action in order to protect the interests of all investors, i.e. the existing bondholders and the Pending Investors.

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

10. Why has the CSSF not published any information on the way forward nor on the proposed Insetco deal ?

10.1 Concerning disclosure on the current situation, please see points 4 to 7 above. In this context, the CSSF would like to draw your attention to the following :

ARM is a company whose bonds are listed on the Irish Stock Exchange (which is a regulated stock exchange) and therefore subject to all applicable rules and regulations of the market abuse directive 2003/6/EC of 28 January 2003 on insider dealing and market manipulation and the relevant national implementing laws.

Thus the CSSF is not in a position to disclose any confidential information exchanged with ARM to any third parties.

10.2 Concerning disclosure on the proposed Insetco transaction, the CSSF can state the following :

ARM and Insetco have informed investors that on 26 August 2011, they entered into a conditional sale and purchase agreement which is subject inter alia to positive feedback of a majority by value of all of ARM’s investors. To that end, ARM intends to issue a consultation paper to its investors (the “Consultation”).

However, the CSSF would like to stress that ultimately, the acceptance of the proposed Insetco deal will be within the court appointed liquidator’s remit, once appointed, who will have to decide inter alia on all questions that arise in relation to ARM and its business, in accordance with his judicial mandate.

As a consequence of the above, the CSSF is and will not be in a position to express any opinion on the proposed Insetco deal. Further, the CSSF needs to carefully assess any disclosure by ARM to its investors and, as the case may be, ensure it is based on proper legal advice, in order to avoid communication of any incomplete, misleading or incorrect information.

The CSSF is therefore actively liaising with ARM on a daily basis, to ensure that any communication by ARM to its investor community, and in particular the Consultation, is factually correct in all aspects. The CSSF can also confirm that a meeting with representatives of ARM and Insecto plc did take place.

Luxembourg, 23 September 2011

The direct link to this announcement is at: http://www.cssf.lu/fileadmin/files/Publications/Communiques/Communiques_2011/CP_1131.pdf

No communications have been directly received at Rockingham from the CSSF in relation to any of our emails sent during the last 7 days. This  includes our request to meet with the CSSF with a number of Bondholders at some stage this week.

To date we have received no cooperation or assistance from the CSSF with the exception of the above web posting in relation to updating bondholders.

Rockingham Independent Ltd

Following our posting of Client emails to the CSSF on Friday two other Bondholders have asked us to post emails that have been forwarded directly to the CSSF we do not believe that an answer has been received by either Bond Holder to date.

My mail to the CSSF reads as follows:

I am an investor in the ARM asset backed fund and have been advised that a company called Insetco plc are intending to purchase Catalyst Investment Group Limited and that they have submitted draft wording for you to approve.

I have spoken to ARM to try and get details of what the cause of the problems are and why the restructuring will benefit the bondholders I am most concerned that they seem to not want to disclose:

a) what the actual cause of the problems within the existing investment is.  They seem to be saying that it is a temporary cash shortage but will not provide details of exactly what caused it.  In particular it would be informative to the bondholders if they advised what expenses were incurred (e.g. salaries, commissions etc.) and whether those are in line with the norm for a similar investment.

b)  what the charging structure will be within Insetco.  Do they have a business model that sets out how they will achieve the expected returns from the fund, etc.

I am concerned that ARM and Insetco are going to request the investors to vote without giving them sufficient information to properly understand what the options are.

My biggest concern is that there may have been unusual charges against the fund within ARM and that they are trying to hide this by a reverse takeover of the company using Intesco.  Is the CSSF going to look into what has happened in the past and ensure that the bondholders are fairly treated?

I would be grateful if you would consider the interests of the bondholders when you approve the letter that ARM/Insetco are intending to send to us.

Regards,

————————————————————————————————————-

Dear Ms Campill,

My wife and I are one of the many investors in ARM and this represents a very significant amount of our pension fund money. After receiving outline information regarding this situation along with a notification of the proposed reverse take-over by Insetco plc, we note that the CSSF has imposed a news blackout on the entire situation. The last information we received in early September, informed investors that they would shortly receive a full explanation of the situation and offer on which they would be asked to vote, within the next few days. Since then, your imposed news & information black-out is causing extensive alarm amongst investors, and no doubt ‘the markets’ who will be asked to purchase some of the enlarged issued share capital. You have totally refused to answer any questions on this situation, and only grudgingly acknowledged the e-mail that Rockingham Retirement sent, requesting an explanation and up-date of your actions. It would appear that your actions are intent of wrecking the proposed acquisition and in the process willfully destroying the savings of many innocent investors. It would seem to the investors in ARM, whose savings are at risk, that your organisation is intent on wrecking the proposed acquisition. As a regulatory body, your organisation is supposed to protect peoples investments, not destroy them. I request in the strongest terms that you provide an explanation of your actions and provide the investors with the information and explanations that they deserve.

We are continuing to obtain as much information as possible for bondholders but are finding the current situation very difficult to ascertain an accurate view of the current position.

We are currently receiving a large number of calls and e mails from concerned investors but unfortunately we currently do not have clear answers to your specific questions. May we ask that you refer to this website for the daily update at 4.30 so we can keep all bondholders informed on the same basis.

Rockingham ‘ARMhelp’ Support Team.

ROCKINGHAM UPDATE ON ARM ASSET BACKED SECURITIES S.A.

Catalyst/ARM

They have advised: A further updated letter has been sent to the CSSF for their consideration and we await to hear a response.

FSA

The FSA continue to advise that any relevant information in conjunction with the ARM Bond, Catalyst Investment Group or their ongoing dialogue with other European Regulators will be immediately notified to Rockingham for inclusion on this update.

CSSF

We have written again today to the CSSF as follows:

Good morning Christiane,

Following on from my e mails earlier this week and my request to meet at your offices with a small number of bondholders of which I am one, please can I urgently request an update from you in relation to the current position with ARM and the delays in communications being sent to Bondholders in respect of the Insetco offer.

We understand that a number of bondholders have written to you directly and they also are still awaiting a response from your offices.

With the deadline set by the CSSF approaching I feel that it is imperative for the benefit of all bondholders and investors that they have an update directly from the CSSF to establish the exact position of the bond and the release of Insetco offer communications. We also consider it important that they are given sufficient time to consider any alternative arrangements that are available to them prior to any forced liquidation/administration proceedings are put into place.

Rockingham Independent Ltd

No response has been received as yet, for the above e-mail to the CSSF this morning, or for our meeting request to the CSSF yesterday (for Rockingham and some ARM Bondholders).

We are now aware that a number of other Bondholders have also written directly to the CSSF, as they have sent us a copy of their e-mails and subsequently today given their permission for the e-mails to be included on this website. Some of these e-mails are shown below, and to our knowledge, no response has currently been provided to the senders.

E mail to CSSF sent 23/9/2011:

Dear Ms. Campill

I am writing to you as a substantial individual bondholder in the ARM Life Settlement bond (through Rockingham Retirement) and as such have been following with great concern the unfolding of events relating to this bond over the last few months.

Following meetings between all interested parties earlier in September it seemed clear from communications with Rockingham Retirement that a deal had been proposed involving the purchase of the ARM assets by Insetco, and bondholders received a letter from Rockingham outlining the deal terms making it clear that they were subject to agreement by the CSSF, and that a further letter would be sent from ARM following wording approval from the CSSF a few days later. This was two weeks ago and I am becoming increasingly concerned at the delay in receiving such a letter outlining the new terms on the table as the date of 29th September approaches when I understand the bond officially enters liquidation

The monies I have invested in this bond to date form the vast bulk of my accumulated retirement funds so my interest in securing the best solution is clear, and the deal on the table as outlined by Rockingham seemed in principle to be a viable option for consideration against the alternatives. I know that many other bondholders feel the same way.

I would therefore like to urge you to continue to work with ARM and Insetco to agree a way forward and permit this option, and the alternatives, to be communicated in more detail to the bondholders as soon as possible

Thank you in advance for your urgent attention to this matter

Yours sincerely

E mail to CSSF sent 20/9/2011:

Dear Christiane

I am writing to you as a very concerned ARM bond holder. We have had an initial communication relating to the take over by Insetco, but nothing seems to be happening.

My wife and I have our life savings invested in the bond so delays in information requiring the outcome of our investment are causing us both great distress.

It would would be very relieving if we could gain some insight, if only to acknowledge that a positive answer is being sought to an issue which is seemingly beyond our understanding, and the CSSF are doing all they can on behalf of the bondholders to find an equitable solution.

I hope you do not mind me contacting you, as we regard you as the best point of help in our current situation.

Kind regards>

E mail to CSSF sent 21/9/2011:

Dear Christiane – CSSF

I am sorry to write to you again, but the delay in any information regarding the transfer of assets to Insetco is causing my wife and I great personal distress. It is more about the uncertainty and lack of information available from the CSSF that is the greatest worry. We have always supported the ARM bond, and have always thought it to be a good product, so this delay in the letter we were promised is most worrying.

I do understand that such talks which are taking place between all parties are of a very confidential nature, and we can’t be privy to them, but I do ask that some sort of confirmation can be sent that the problem is being addressed, and a positive solution is being sought, and the CSSF is doing all in it’s power to protect the interests of the bondholders such as my wife and I.

Thank you for your indulgence in such a long email, but the worry and concern is such, I must open my heart to you in respect to the distress this whole matter has caused of the last months.

Kind regards

E-mail to FSA, Intertrust and Catalyst and cc to CSSF sent 21/9/2011

Dear Sir/Madam

My wife and I are bondholders in ARM. We have invested our life savings because we thought the bond was a good investment. We still support the bond as our opinion of it has not changed; we are very puzzled and concerned regarding the actions of the CSSF and the CBI in regards to this bond. We have been told that a takeover by Insetco is proposed, but the delay in informing us is causing us both great distress, as I am sure it is causing to the hundreds of my fellow bondholders.

We understand that confidentiality is vitally important regarding any such transaction, but the lack of information of any sort is very disturbing, and I believe that some of the parties involved could have offered some sort of comfort to the stretched nerves of the investors, who have been treated with poor respect.

I attach the emails I have sent to Christiane Campill at the CSSF, to which I have had no reply to date. I would urge you to help, by being more informative by way of at least confirming that productive negotiations are ongoing and a statement will be forthcoming. That at least would show positive action.

I await your reply in the hope of ending terrible sleepless nights.

Yours sincerely

Regards,

Rockingham ‘ARMhelp’ Support Team.

ROCKINGHAM UPDATE ON ARM ASSET BACKED SECURITIES S.A.

Catalyst/ARM

We have spoken to them today but they have no new update for us at this time.

FSA

The FSA continue to advise that any relevant information in conjunction with the ARM Bond, will be immediately advised to Rockingham for inclusion on this update.

CSSF

No communication has been received from the CSSF today.

Rockingham Retirement (Trustees) Ltd: For Rockingham SIPP Holders only (including RITA)

Although all payments on the ARM bond have been suspended by the CSSF, (including the monies due on 1st October), this does not automatically mean your regular income payments will stop. You may still be able to continue to receive regular income payments if there is sufficient cash in your SIPP account to meet your monthly payment requirement. If there is not enough cash in your SIPP account, then it is likely that your income payments will be affected and you will not be able to be paid your next income payment by the SIPP trustees.

Rockingham Independent Ltd

From our perspective, it was imperative that we notified all ARM investors with the information published by the CSSF at the end of August, including ARM’s subsequent statement regarding the Insetco proposal. Further to our letter to you earlier this month, it is a huge disappointment that you have not now subsequently received the expected letter from ARM, nor any further update from any of the regulators concerned with this fund.

On 29th August, the CSSF said: ‘If unchallenged, the Decision will become final one month after its notification.’ We will continue to chase for updates but we are waiting to see what transpires over the next 7 days leading up to 29th September.

We have today written to the CSSF requesting a meeting with them next week to include, Representatives from Rockingham, and a number of investors who have indicated they wish to discuss the current position directly with the Luxembourg regulator. We await their reply.

We have received many e-mails asking for more information about Insetco and ARM, but at the moment we are not able to answer the pressing questions you have. It is of course important to us that any answers we provide to your questions are accurate and clear. At this present time, we are not in a position to provide this clarity to you.

We will however, get back to you as quickly as possible, if you have asked us about your future income payments and current cash holdings if we have not as yet spoken to you.

Thank You,

Rockingham ‘ARMhelp’ Support Team.

ROCKINGHAM UPDATE ON ARM ASSET BACKED SECURITIES S.A.

Rockingham Independent Ltd

We have today received an acknowledgement from the CSSF regarding the email we sent to them yesterday – see below. We are struggling to bring you the meaningful updates we all really need, but it’s certainly not for the lack of trying. Many of you have been asking us for the relevant contact details so you can support our efforts in trying to obtain useful updated information. We have listed below some e-mail contact details which we have taken directly from their websites.

CSSF

We did receive a reply this morning from Christiane Campill at CSSF, (Wed, Sep 21, 2011 07:27) in reply to Gary Forsters e-mail of yesterday:

‘Mr Forster
I acknowledge your e-mail.
We will come back to you shortly
Regards
——————————————————————————————————————-
Christiane Campill
Head of Department,’

FSA

We still have not received any comment from them:

Catalyst/ARM

Catalyst and ARM have been giving us short updates, but discussions between them and the CSSF are confidential.

Regards,

Rockingham ‘ARMhelp’ Support Team.

ROCKINGHAM UPDATE ON ARM ASSET BACKED SECURITIES S.A.

Catalyst/ARM

Catalyst have advised that they continue to liaise with the CSSF on the issue of the Insetco offer letter to bondholders. They are currently prohibited from providing any further information at this time. We have been advised however that ARM remain fully committed to providing a workable solution to investors in the near future and continue to work closely with the CSSF to resolve the current position.

FSA

The FSA have advised that they are closely monitoring the situation on behalf of investors but do not have any official update to add to this site at the present time. They have advised that any formal updates will be immediately provided to us to clarify the current situation.

CSSF

No response has been received from them at this time.

Rockingham Independent Ltd

Following yesterdays e mail to the CSSF to ask for clarification on the current position, no response has been received from the CSSF. We have today sent them the following e mail:

‘christiane.campill@cssf.lu’

Dear Christiane

I am writing further to our e mail of yesterday regarding the provision of an explanation and an update for our clients who are anxiously awaiting further information on the pending Insetco offer.

Please can you respond by return as we are currently updating all of our clients on a daily basis via our ARM website and currently do not have any feedback from the CSSF in relation to this matter.

Kindest Regards

Rockingham Retirement

We also understand that communications have been forwarded to ARM and the CSSF from all of the respective pension fund trustees (Including Standard Life and The Rockingham SIPP) asking for an update to the current position. We have asked if these communications can also be published.

Regards,

Rockingham ‘ARMhelp’ Support Team.