The Malta Financial Services Authority will sit on an ad hoc committee set up by BDO UK, the provisional liquidators of ARM Asset Backed Securities SA, whose collapse had bitten a number of Maltese investors.
During a recent meeting held by BDO, investors had to vote to elect members to sit on the ad hoc committee of ARM investors which will be consulted regularly by the liquidators.
The provisional liquidators determined that the committee would be composed of four bondholders as well as the UK’s Financial Services Compensation Scheme (FSCS) and the Malta Financial Services Authority on an ex-officio basis. The MFSA said that information of a non-public, confidential nature and price sensitive nature will be provided to the committee but that it would have no executive powers.
“Therefore, if the provisional liquidators, after having obtained feedback from the ad hoc committee, decide – for example – to propose a restructuring process, a vote on this proposal will need to be taken by all the bondholders,” it said.
A separate process with regard to claims is being undertaken by the FSCS, which has now ruled that Maltese investors holding tranches 1 to 11 will be treated in the same way as UK investors with regard to compensation.
However, claims will be considered on a case-by-case basis – which means not all of them might get compensation.
The maximum compensation that an investor can receive amounts to £50,000 (€60,474), according to FSCS rules.