Maltese ARM investors urged to seek advice
The Malta Financial Services Authority has urged Maltese investors who hold an investment in ARM Asset Backed Securities S.A. to seek independent advice in order to make any claims after a Luxembourg court confirmed a judgment concerning the CSSF decision to refuse to grant a licence to ARM.
ARM securities were sold in Malta by two financial intermediary firms and it is believed that hundreds of Maltese invested in this product.
The MFSA said that the CSSF announced that the judgment of the administrative court of appeal is final and cannot be appealed. This means that the decision of the CSSF to refuse a license to ARM has become final.
The CSSF has now requested the Luxembourg Courts to order the dissolution and the liquidation of ARM.
It is expected that the Luxembourg Courts will appoint a supervisory judge, who will be in charge of the supervision of the liquidation of ARM, as well as one or more liquidators.
The MFSA will inform the public once the judgement ordering the dissolution and the liquidation of ARM is published by the liquidator as stipulated under Luxembourg law. The publication will indicate the time period during which creditors of ARM may file their claims.
In regard to those investors holding tranches 9, 10 and 11, the so-called “pending investors”, the MFSA is informed that it will be up to the court appointed liquidator who will conclusively determine who owns these monies.
In order for all ARM investors to be able to know how much they may recover from their original holding, the liquidator has to determine conclusively the legal ownership of the pending monies in tranches 9, 10 and 11.