On 29 August 2011 the Luxembourg financial services regulator, the Commission de Surveillance du Secteur Financier (the “CSSF”) announced that it is refusing to grant a licence to ARM Asset Backed Securities SA (“ARM”). ARM will have four weeks in which to appeal.
ARM is a special purpose vehicle based in Luxembourg. It is unregulated but had applied for authorisation to the CSSF - the regulator in its home state. ARM bonds were listed on the Irish Stock Exchange. Its products were marketed in the UK and Europe.
CSSF’s decision means that all payments by ARM are suspended, including redemptions of its bonds and coupon payments.
The Financial Services Authority (FSA) is working closely with the CSSF and the Irish regulator, The Central Bank of Ireland.
The FSA will provide further updates as soon as possible.
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