STM Group PLC Recommencement of Trading & Inspectors Appointment (4672W)

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RNS Number : 4672W

STM Group PLC

14 November 2017

 
 Press Release   14 November 2017 
 

STM Group Plc

("STM", the "Company" or the "Group")

Statement Regarding Some Gibraltar regulated entities - appointment of Inspectors by the Gibraltar Financial Services Commission

and Recommencement of Trading

STM Group Plc (AIM: STM), the cross border financial services provider, advises that on 6 November 2017, certain of the Company's Gibraltar regulated subsidiaries, (the "Subsidiaries") received notice from the Gibraltar Financial Services Commission ("GFSC") of the appointment of inspectors (the "Appointments") under Section 8(1) of the Financial Services (Information Gathering and Co-Operation) Act 2013 (the "Act") (the "Notices").

The Board of STM and the Subsidiaries have taken legal advice as to whether the GFSC has sufficient grounds to make the Appointments and have been advised that there are strong grounds to appeal the Appointments. The Subsidiaries have therefore filed and served an appeal against the Appointments (the "Appeal") with the Gibraltar Supreme Court (the "Court"). The Appointments have also been temporarily stayed by Order of the Court of 8 November 2017, pending the hearing of a substantive stay application by the Court which is scheduled to be held on 20 November 2017. The Court has also made a Privacy Order at the hearing on 8 November 2017.

The Company notes that the Subsidiaries are in ongoing dialogue with the GFSC in relation to establishing a collaborative route forward and hopes to reach a resolution through this route.

By way of background to the appointments, pursuant to section 8(1) of the Act, the GFSC may appoint inspectors to investigate the affairs, or any specific aspects of the affairs, of any person in Gibraltar who has carried on a regulated activity in or from within Gibraltar or is a relevant Person (as defined in section 2(1) of the Act) and to report to the GFSC in that respect. In addition, pursuant to section 8(2) of the Act, the GFSC shall appoint an inspector under section 8(1) of the Act, if, inter alia it appears that a firm is not meeting its regulatory and/or prudential requirements or it is necessary to protect the interests of customers, prospective customers or the public, in Gibraltar or elsewhere.

The GFSC carried out a number of site visits to the premises of the Subsidiaries in September / October 2016, and gave initial feedback in April 2017, with final feedback being received in June 2017. In addition, in March 2017, the GFSC conducted a one day site visit specifically to review the centralised compliance function in Gibraltar. As a result of these site visits, the GFSC have stated they have some concerns regarding certain aspects of Compliance, Governance and Controls and the provision of Professional and Trustee Services.

The Appointments have no impact on the Company's ability to trade. However, the Appointments could have a material cost impact on STM if the Subsidiaries' appeal is unsuccessful.

The GFSC advised the Subsidiaries at the time of issuing the notices of Appointment that the Appointments are not connected to the recent allegations against Alan Kentish disclosed in the Company's announcement of 30 October 2017.

STM Group plc is fully supportive of its Subsidiaries and the actions they have taken.

Further announcements will be made in due course, as appropriate.

Recommencement of trading in the Company's shares will take effect from 12 p.m. today.

The information communicated in this announcement is inside information for the purposes of Article 7 of Regulation 596/2014.

For further information, please contact:

 
 STM Group Plc 
 Alan Kentish, Chief Executive      Tel: [phone] 
  Officer                             www.stmgroupplc.com 
  Therese Neish, Chief Financial 
  Officer 
 
 
 finnCap                                Tel: [phone] 
                                                       1658 
 Matt Goode / Emily Watts - Corporate       www.finncap.com 
  Finance 
  Mia Gardner - Corporate Broking 
 

Media enquiries:

 
 Walbrook PR               Tel: [phone] 
 Tom Cooper / Paul Vann    Mob: [phone] 
                           [e-mail] 
 

Notes to editors:

STM is a multi jurisdictional financial services group which is listed on the AIM Market of the London Stock Exchange. The Group specialises in the delivery of a wide range of financial service products to professional intermediaries and the administration of assets for international clients in relation to retirement, estate and succession planning and wealth structuring.

Today, STM has operations in the UK, Gibraltar, Malta, Jersey and Spain. The Group is looking to expand through the development of additional products and services that its ever more sophisticated clients demand. STM has developed a specialist international pensions division which specialises in Qualifying Recognised Overseas Pension Schemes (QROPS), Qualifying Non UK Pension Schemes (QNUPS). STM has a Gibraltar Life Insurance Company, STM Life plc, which provides life insurance bonds - wrappers in which a variety of investments, including investment funds, can be held.

Further information on STM Group can be found at www.stmgroupplc.com

This information is provided by RNS

The company news service from the London Stock Exchange

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November 14, 2017 07:00 ET (12:00 GMT)