On 16 March 2012, Probitas Limited announced that it has been instructed by Rockingham Independent Limited to start putting the firm into liquidation. This means that Rockingham has applied to be closed down. Here we explain what it means for investors.
Probitas was formally appointed as liquidator on 30 March 2012.
The Financial Services Compensation Scheme (FSCS) protects consumers when authorised financial services firms fail. On 3 August 2012, the FSCS announced it was investigating whether it has a role to play in compensating Rockingham's customers. This includes whether any eligible claims may exist under its rules. FSCS will provide updates on its website for consumers when more information is available.
Rockingham provided investment advice and sold investment products. Last year we fined it £35,000 for recommending unsuitable investments. Rockingham agreed to stop selling unregulated collective investment schemes (UCIS) or structured products. It also agreed to conduct a past business review into the suitability of its advised sales to investors and whether customer redress may be required. As the firm has gone into liquidation, this review will not be completed.
Amongst the products it sold, Rockingham sold bonds based on senior life settlement policies that were issued by ARM Asset Backed Securities SA (ARM). However, last year, the Luxembourg financial services regulator, the Commission de Surveillance du Secteur Financier (CSSF), announced that it was refusing to grant a license to ARM.
ARM update – February 2013
On 28 February 2013, the Financial Services Compensation Scheme (FSCS) informed those that had claimed against Rockingham, over the sale of bonds based on senior life settlement policies issued by ARM, that their claims were not eligible for compensation.
FSCS update – October 2013
In July, the FSCS announced, that it was reviewing new evidence in claims against Rockingham, relating to advice that the firm gave clients to invest in ARM bonds. It will aim to update on the outcome in October 2013.