Investors in Keydata-style bonds told products never approved

UK investors in ARM Asset Backed Securities, a Luxembourg-based special purpose vehicle, have received letters stating regulatory approval for their investments has not been given, the Financial Times reports. They are being offered returns as low as 0.14% on their £36m investment pool on bonds which promised up to 9% per year. ARM has been trying to gain authorisation from the Luxembourg regulator (CSSF) since last July but continued to sell the products without approval. Investors‘ money has been held in holding accounts accruing interest of 0.14% until the bonds could be boug...