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FSCS reviews Rockingham claims rejection as ‘new evidence’ emerges

FSCS-office-alternative-2013

The Financial Services Compensation Scheme is reviewing its decision to reject claims from clients of Rockingham Independent who invested in a troubled Luxenbourg-based life settlement vehicle.

In March, the FSCS issued a statement saying Rockingham clients who invested in ARM Asset Backed Securities would receive no compensation for their losses.

At the time the FSCS said: “While we accept Rockingham may potentially have given bad investment advice to some investors in respect of ARM investments, we do not consider such advice can properly be said to have caused the losses which investors may have suffered.”

However, the FSCS is now reviewing its position after being presented with “new evidence” by investors.

An FSCS spokesman says: “FSCS has received a number of responses from claimants since writing to them earlier this year, and some new evidence has been presented to us. 

“FSCS is now reviewing the evidence against the original view on Rockingham’s liability and hopes to update these claimants shortly.”

Rockingham was placed into liquidation on 30 March last year. As ARM is not authorised by the FSA, investors are not covered by the FSCS but they can still bring claims against the adviser who recommended the bonds.

Of the 2,000 UK investors that invested a total of £75m into ARM, at least 200 sales were advised by Rockingham.

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