'Death bond' issuer refused licence; payments stopped

The Luxembourg financial services regulator, the Commission de Surveillance du Secteur Financier (CSSF), said it refused to grant a licence to ARM on 29 August. ARM now has four weeks in which to appeal. ARM bonds, which were marketed in the UK, Europe and the US, were listed on the Irish Stock Exchange. The products are backed by senior life settlements - known as 'death' bonds because they derive income from the proceeds of life insurance plans acquired from older US citizens. CSSF's decision means that all payments by ARM are suspended, including redemptions of its bonds and cou...