STM Plc quits Gibraltar after CEO arrest

SIPP provider STM Group - which owns UK-based London & Colonial - is to move its HQ from Gibraltar to the UK following the arrest and release last year of its chief executive. The cross border financial services provider said today it had taken the decision during the fourth quarter of 2017 to “review” the location of its head office. Following the review the directors decided to move the head office from Gibraltar and relocate to the UK from this month (January 2018). The directors say the decision has been “well received by intermediaries, investors and other various stakeholders.” The company says the relocation is now in progress. Earlier this week, the international SIPP provider announced it had agreed with the Gibraltar regulator to use Deloitte to carry out a Skill Persons Review of the company in Gibraltar following previous intervention by the watchdog. STM Gibraltar had been appealing the decision by the Gibraltar Financial Services Commission to appoint inspectors to review “aspects” of the businesses, STM said. Because of this an appeal hearing, previously scheduled for 22 January, will no longer take place.STM’s board backed chief executive Alan Kentish last year following his arrest in Gibraltar over allegations related to a tax dispute and alleged failure to disclose the proceeds of crime. In October STM said that on Thursday 19 October Mr Kentish was arrested by the Royal Gibraltar Police on an allegation of failure to disclose under the Proceeds of Crime Act 2015. The arrest came approximately two years after STM itself filed two Suspicious Activity Reports to the Royal Gibraltar Police during a tax dispute with a client.The company has also released a trading update today and says the group has traded in line with market expectations and expects to deliver a profit before tax for the year to 31 December 2017 of at least £3.8 million (2016: £2.8 million). The company said its STM International ISIPP did particularly well following Budget changes to QROPs rules. Separately, STM has also signed an agreement to acquire the Malta-based ROPS provider Harbour Pensions Limited, subject to Malta Financial Services Authority approval. The company says it is also continuing to look for other possible “bolt on” acquisitions. STM chief executive Alan Kentish said: “With the UK Budget instantly curtailing most of our new ROPS business in March and the exceptional circumstances of the fourth quarter, 2017 has certainly brought its unexpected challenges. Pleasingly, however, management was able to react proactively which allowed the business to perform in line with management expectations. “The group’s annual recurring revenue continues to underpin our business. However, 2017 has resulted in significant changes to our geographic footprint and business proposition – an upsizing of our UK business and less reliance on our Gibraltar and Malta pension businesses. Such a repositioning of our business is time consuming and required some integration during 2017. This investment brings opportunities in 2018 to improve our profit margins.”Final results for 2017 will be announced on 27 March.

STM Plc quits Gibraltar after CEO arrest

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