Investors express anger at FSA advice on stricken ARM fund
Investors in the ailing ARM Asset Backed Securities fund have hit out at the FSA after the regulator recommended they seek a refund on their investments in the product.
The regulator published updated information on its website regarding the Luxembourg-based life settlement fund’s restructuring, which is currently being overseen by a six-member committee.
The FSA recommended investors formally request a refund from ARM if they took part in tranches 9, 10 and 11 of investments, and then seek legal advice if the money is not paid.
However, the ARM Help steering group criticised the FSA’s advice as much of the money in these three tranches was frozen by the regulator earlier this year while awaiting a court ruling on who owns the money.
The ARM Help steering group called the FSA’s update “further unhelpful meddling” and also criticised its timing in the middle of deliberations over the fund’s restructure.
UK clients invested a total of £76.4m in ARM through its UK distributor Catalyst.