The Financial Services Compensation Scheme (FSCS) has said it will not be compensating clients of defunct advice firm Rockingham Independent who invested in troubled life settlement fund ARM.
'Therefore, FSCS does not consider that Rockingham owes a civil liability in respect of losses that claimants may have suffered in relation to ARM investments,' it said.
The FSCS said it believed the legal cause of investors' losses was the Luxembourg regulator's decision to reject ARM's application for authorisation.
'We believe these were not the type of losses which Rockingham was legally responsible for warning investors about. For these reasons, FSCS believes Rockingham does not owe a civil liability to investors and, accordingly, we are unable to uphold claims.'