FSCS may swerve payouts as suspended ARM fund sells assets

Laura Miller
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The Financial Services Compensation Scheme (FSCS) may avoid picking up the whole bill for the suspended ARM Asset Backed Securities investment as the fund's board has found a buyer for the life-settlement policies in its portfolio.

The Keydata-style fund, which at its peak had a value of nearly £200m, never achieved regulatory approval, and in August 2011 was frozen by the CSSF in Luxembourg (where the fund is based), leaving more than 1,500 clients locked out of their investments. Financial Credit Investment Limited has bought the portfolio for an undisclosed "fixed amount of cash", some of which shall be paid upfront and the balance to be paid over a period of time, according to an announcement on the Irish Stock Exchange. It is not clear whether this sale will mean investors get all of their money back, howev...

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