Source - SMW
STM Group said authorities in Gibraltar had agreed to allow a third party to review certain aspects of its business, rather than send in their own government inspectors.

The development meant that an appeals hearing initiated by STM against the appointment of inspectors would no longer take place.

Deloitte had been appointed as the third-party investigator, STM said.

The agreed scope of the probe would remain unchanged and would cover the effectiveness and oversight of the company's internal compliance function, corporate governance and controls, and an assessment of any potential conflicts of interest arising across the business. 

In addition, the review would also cover areas relating to the pensions and life assurance business.

"The company confirms that, despite costs incurred to date and expected costs to be incurred in relation to this matter, its trading subsidiaries have not experienced any adverse effects to trading as a result of these matters," STM said.

Consequently, the company said it remained confident of meeting its expectations for the previous and current financial years.

"It is pleasing that the Gibraltar subsidiaries have been able to come to a workable solution with the Gibraltar regulator, rather than pursuing their case through the courts which, at the end of the day, is in neither party's interest," chief executive Alan Kentish said.

"We look forward to working with Deloitte and the GFSC."


At 1:56pm: (LON:STM) STM Group PLC share price was +8p at 42.5p