The Financial Services Compensation Scheme (FSCS) will not compensate investors bringing claims against Rockingham Independent for allegedly negligent advice – meaning there will be no additional levy for advisers.
28th February 2013
The Financial Services Compensation Scheme (FSCS) will shortly be contacting individuals who have brought claims against Rockingham Independent Limited (Rockingham) in relation to ARM investments. FSCS will be writing to confirm it is not able to pay compensation to these claimants under its rules.
FSCS rules out compensation for Rockingham ARM investors
Rockingham Independent clients who invested in a troubled Luxembourg-based life settlement vehicle will not receive compensation for their losses from the Financial Services Compensation Scheme.
FSA legal battle costs life settlement fund £2.5m
Luxembourg-based life settlements fund still locked in legal battle with FSA over investor money in frozen bank accounts.
By Nick Reeve | Published Feb 26, 2013 | FTAdviser
We finally have our long awaited RNS, and it covers, in some detail, the questions to which we have needed answers for months. A Regulatory News Service announcement has to meet certain stock exchange regulations, and has to be written in a way that respects legal agreements, so there are inevitably some details either absent, or requiring interpretation. I will rely on bondholders to write to the Steering Committee, at the address below, letting us know anything they feel requires explanation and I will attempt to deal with those points in next Friday’s ‘Update.’ For ease of understanding I will go through the points in the RNS in the order in which they appear. I apologise in advance that I cannot write other than a quick review of each clause at this time, but hope this will suffice for now.
RNS Number : 6304Y
ARM Asset-Backed Securities S.A.
25 February 2013
ARM ASSET BACKED SECURITIES S.A (the “Company”)
25 – 02 – 2013
The board would like to thank you in your continued patience, as you are aware the board implemented a de-risking of the portfolio on November 2nd, 2012, this was after a protracted bidding process. The de-risking was the first step in a 3 step plan to restructure the portfolio. We are also aware that many other issues are on the minds of bondholders in conjunction with the status of the long drawn out restructure. We will try to answer as many issues as possible below:
This will be a difficult ‘Update’ to write as my wife and I are having a long weekend break on the North York’s Moors and both time and Internet availability are rather limited. Please think of this as a holding ‘Update’
Recognition(of a Sort)
Readers may recall that last Spring I attended the International Life Settlement Conference in London and wrote a report on it for this website. If anyone wishes to refresh their memory they can read it here: http://www.armhelp.co.uk/wp-content/uploads/2011/11/Life-Settlement-Conference-.pdf It was a very worthwhile use of two days of my time and it allowed me to network with a large number of industry insiders.
Well this year I have been invited to speak at the conference, and bondholders will probably not be surprised to learn that the subject chosen for me is:
“Deals Gone Wrong: Investors Speak Out About What They’ve Learned “
Sadly, as the conference is only two days long, I will have to paraphrase our experiences of the last 18 months!
Once again I have to begin by thanking, most sincerely, the many kind readers who have taken the trouble to contact me regarding my health. Last Friday involved a bit of a drama, but I glad to report everything is back on track and I’m on the mend.
The Serious Stuff
Director Ronan Collins, who by some strange coincidence was hospitalised at the same time as me, emailed me from hospital and described the pair of us “as being as sick as a small country”, a turn of phrase which I thought was rather apt! Thankfully he is also on the road to recovery. He has supplied me with the latest figures for changes of ownership of our policies to FCIL. The position, as of yesterday, is 224 of 299 changes of ownership have taken place, approx 75%, so we are back on track. Please keep in mind that this is a process where ARM are waiting for counterparts to deal with the details, and they cannot other than work with the flow