The Guernsey Financial Services Commission (GFSC) has approved the restructure of the suspended EEA Life Settlements fund, in a move which could finally allow investors to exit the fund after a two-year wait.
In an update, the EEA's board of directors said the Guernsey regulator had granted the "necessary regulatory approvals" to allow the restructure to proceed.
As a result, EEA said it would restructure the fund on 1 January and lift the two-year suspension on valuations.
It said: "The suspension of the valuation of the net asset value of all classes of participating shares in each cell of the Fund and of the issue, sale, purchase, redemption and conversion of shares of each such class, which the Board originally declared on 30 November 2011, shall be lifted immediately upon the restructuring becoming effective on 1 January 2014."
The fund was suspended in 2011 due to "unprecedented" levels of redemption requests after the regulator announced it would seek to ban the sale and marketing of traded life policy investments to retail investors - which it subsequently did.
Investors in EEA were given a stark choice to restructure or face the risk of the vehicle being liquidated.
Last month there was a fresh worry for trapped investors after the GFSC said the restructure and reopening of the fund would not be able to take place until EEA provided audited accounts for 2012.
However, with this now done, investors can move to exit the vehicle.
EEA confirmed 58.07% of investors elected to move to the corresponding 'Run-Off Cells' which were set up as part of the restructure.
EEA will now apply to list the new shares which, if approved by the Channel Islands Stock Exchange, should enable investors with a way to exit.
Nonetheless many will still be out of pocket, with the fund - which was worth $1bn at the time of its suspension - having already seen its NAV fall sharply.
In its latest results for the six months to end of June, the NAV of every cell was marked down substantially, some by more than 10%.
‘Important to have an anchor’
Lack of innovation for solutions
Some 2,000 consumers affected
Achievements, charity work and other happy snippets