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Guernsey regulator approves EEA restructure

The restructure of the suspended EEA Life Settlements fund has been approved by the Guernsey financial regulator, signalling a chance for investors to exit after two years.

An update from the fund’s board says the Guernsey Financial Services Commission “has granted the necessary regulatory approvals” for it to carry out the restructure proposed last year.

EEA Life Settlements’ restructure was effective as of 1 January 2014. Around 58 per cent of the shares will be moved to run-off cells, which allow investors to eventually exit the fund, with the remaining shares placed in “continuing” cells.

Dealing in the fund was suspended in December 2011 after a wave of redemption requests came in after the FSA labelled traded life settlement products as high risk and “toxic”.

In September 2013, the fund’s board laid out its restructure plans, which were approved by investors.

But in November the Guernsey regulator said it required further information before approving the move.

EEA Life Settlements’ new update says: “The suspension of the valuation of the net asset value of all classes of participating shares in each cell of the fund and of the issue, sale, purchase, redemption and conversion of shares of each such class shall be lifted immediately upon the restructuring becoming effective.”

Aurora Financial Planning chartered financial planner Aj Somal says: “Obviously it has been a long wait for these investors, but it is good news there may now be some light at the end of the tunnel for them.”

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