The Financial Services Compensation Scheme (FSCS) will start inviting claims against Catalyst Investment group from investors in the ARM Asset Backed Securities life settlements fund by the end of March.
The scheme said Catalyst, which distributed bonds issued by Luxembourg-based ARM to investment intermediaries and IFAs in the UK, may be liable for losses "in many cases". Catalyst continued to promote ARM bonds between November 2009 and May 2010 after it was asked by the Luxembourg regulator to stop and await a pending authorisation for ARM to issue the products. The firm was censured by the Financial Conduct Authority (FCA) for ignoring the regulator's orders and for not disclosing to the IFAs and investors the true risks surrounding ARM's uncertain position. Last year the FSCS s...
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