co-operative financial regulation ? August 30, 2011Posted by Bradley in : financial regulation , trackback
The Commission de Surveillance du Secteur Financier in Luxembourg has announced that it has declined to recognise ARM Asset Backed Securities S.A. as a regulated securitisation undertaking under the Luxembourg law on securitisation (the assets backing the securities are life insurance policies taken out by US seniors.) The UK’s FSA and the Central Bank of Ireland say they are working with the CSSF. The CSSF states:
The CSSF considers that this Decision, as from the notification thereof to ARM (which has occurred today), entails a suspension of any payment by ARM and prohibition for ARM, under penalty of voidance, to take any measures other than protective measures, unless otherwise authorized by the CSSF acting as supervisory commissioner (“commissaire de surveillance”).
If unchallenged, the Decision will become final one month after its notification. Once the Decision is final, the district court dealing with commercial matters shall, as a consequence thereof, be requested to pronounce the dissolution and order the liquidation of ARM.