Bob’s Weekly Update

Dear Bondholders,

Last week I reported that a meeting of the ARM board, together with their advisor’s from E&Y, and the regulators was planned for Tuesday 25th, that meeting was to include representatives of both the regulators the CSSF and the FSA.  Nothing official has been heard from the ARM Board during the ensuing days.

by Bob Sharpe

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STATEMENT FROM CAREY PENSIONS

Carey Pensions UK have now been looking after the SIPP schemes of the ex- Rockingham SIPP since the beginning of June, and we have tried to keep members informed as the reviews of the schemes have been conducted as they have moved to the Carey Pension Scheme 2, we have now almost completed all the reviews of each scheme and have communicated the status to most of the members with the final ones being delivered by the end of next week 5th October.

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WHAT IS A FAIR SETTLEMENT?

I was curious to read an article written by a fellow bond holder, outlining the alternatives open to all the bondholders, all of which are based on certain assumptions. The arguments put forward are based on those very assumptions we have been advocating on this website for the last 10 months, often argued against by the very people who now purport to support them. This change of mind we welcome wholeheartedly, as we have always considered that whatever is the final plan, must benefit all bondholders. Some of the views and ideas proposed have often fallen far short of that ideal.

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ARE WE GOING TO BE IN THE SAME POSITION?

“……the FSA who we believe have done as much, if not more than any other single party to damage an early resolution to the problem.” (As Brian Love wrote recently.)
The regulators, who everyone thought were professional and in existence to protect vulnerable retail investors, have been criticised on many occasions on these pages. They got it badly wrong with Lifemark/Keydata, and in what would seem to have been a ‘headless chicken moment’, either panicking over their past mistakes or in an organised backside covering exercise, have also got things badly wrong with ARM.

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THE REAL DEAL

When the CSSF and FSA panicked by KeyData intruded on our investment, the ARM fund contained around twice the value of policies that it does now.  Had the money from Tranche 9-11, locked up at minimum interest for so long been invested as intended, it is not unreasonable in my view, to believe that our fund would now have contained $1B (one billion dollars) face value of policies. Had subscriptions been allowed to continue, that figure might have been as much as $2 Billion.

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THE BEST DEAL

My colleague Brian Love recently posed me the question

“Is there anywhere a written determination of the best deal, and in whose eyes?”   

Well I believe that there is, on the 13th August a letter was sent by Forum bondholder representatives to the board of ARM seeking a bondholder meeting and listing a number of aspects that should be included in any restructure. The ARM Help Committee support this letter, in principal, as it contains a list of many of the items already demanded on this website and it serves to indicate that wherever we started out, bondholder representatives have arrived at the same conception of what bondholders require. We also have the evidence that voting on the Insetco proposal supplied, which was a restructure broadly based on the same points was preferred by a majority of those who voted.

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