Continuation of zero establishment fee on QROPS until 31 March 2017
25 October 2016
STM Group Plc (AIM: STM), the cross border financial services provider, is pleased to announce an extension of the six month zero establishment fee initiative for the Group's new QROPS applications following a considerable uplift in average monthly new applications in this period when compared to the average monthly number of new policy applications received in the first four months of the year.
The establishment fee was waived in late April of this year to support STM's drive for new client business. This made STM unique in the market place and provided a compelling reason for intermediaries to use the Group's QROPS product. This benefits STM by continuing to build the Group's recurring revenue streams as each new QROPS client won has an expected fee generating life of 20-25 years.
The zero establishment fee initiative will now remain in place for all applications received before the 31 March 2017. This is applicable across all of the STM Gibraltar and Malta stand-alone QROPS products, including Australian, US QROPS, Contract QROPS and the QROPS SMART.
Commenting on the agreement to extend the initiative Alan Kentish, Chief Executive Officer of STM, said:
"The significant uplift in average monthly new business since we commenced the zero establishment fee initiative translates into a greater long-term recurring revenue stream for the Group.
"Our focus is to build a durable business with predictable revenue streams and profitability. This pricing model is proving to be a valuable initiative in this environment and a strategic benefit to enhancing shareholder value."
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 Officer||Tel: 00 350 200 42686|
|Therese Neish, Chief Financial Officer||Tel: 00 350 200 42686|
|FinnCap||Tel: +44 (0) 20 7220 0500|
|Matt Goode / Emily Watts - Corporate Finance||www.finncap.com|
|Mia Gardner - Corporate Broking|
|Tom Cooper / Paul Vann||Tel: +44(0)2079338780
Mob: +44 (0) 797 122 1972
Notes to editors:
STM is a multi-jurisdictional financial services group listed on the Alternative Investment Market of the London Stock Exchange. The Group specialises in the delivery of a wide range of financial service products to professional intermediaries and in the administration of assets for international clients in relation to retirement, estate and succession planning, and wealth structuring.
Today, STM has trading operations in Gibraltar, Malta, Jersey, and Spain. It has also recently opened satellite offices in South East Asia, the Middle East, and South Africa. The Group continues to expand through the development of additional products and services that its ever-more sophisticated clients demand.
STM has, for example, a dedicated international pensions division which specialises in Qualifying Recognised Overseas Pension Schemes (QROPS) and Qualifying Non-UK Pension Schemes (QNUPS); it also has a Gibraltar Life Insurance Company, STM Life Assurance PCC 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