Further to the notice issued on the 31st August 2011, regarding ARM Asset Backed Securities SA ("ARM"), the Malta Financial Services Authority (MFSA) refers investors to the Communique de Presse 11/31 relating to ARM issued on 23 September by the Commission de Surveillance du Secteur Financier (“the CSSF”). The Communique is in the form of Frequently Asked Questions.

The MFSA is aware that ARM has informed investors that on 26 August 2011, it entered into a conditional sale and purchase agreement with Insetco plc which is subject inter alia to positive feedback from a majority by value of all of ARM’s investors. However the MFSA would like to stress that, as indicated by the CSSF in the FAQs of the 23 September 2011, the acceptance of the proposed Insetco deal will ultimately be within the remit of the liquidator to be appointed by the court if the CSSF’s decision is not challenged by ARM, who will decide on all questions that arise in relation to ARM and its business.

The FAQs issued by the CSSF on the 23 September 2011 also refer to ARM’s intention to issue a consultation paper to its investors. The MFSA urges all persons holding an investment in any of the ARM bonds, as well as those persons who have transferred funds to ARM but have not received bonds, to seek independent professional advice, once this consultation paper is issued, in order to determine whether the proposal being made is in their best interest.

The following is a link to the CSSF’s Frequently Asked Questions of the 23 September 2011.

http://www.cssf.lu/fileadmin/files/Publications/Communiques/Communiques_2011/CP_1131.pdf