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...
To continue reading this article...
Join Professional Adviser for free
Signup and gain exclusive members-only insights
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes
