A Regulatory Settlement Agreement has been entered into between the Gibraltar Financial Services Commission (GFSC) and the STM Group of companies within Gibraltar. This Agreement relates to the period 1 January 2016 to 31 December 2017, during which standards in some areas fell below what was expected of them for regulatory purposes.
The STM Group of companies consists of the following Gibraltarian companies all of which are regulated by the GFSC (collectively “STM Fidecs, Gibraltar”): STM Life Assurance PCC PLC (STM Life); STM Fidecs Management Limited (FML); STM Fidecs Pension Trustees Limited (FPT); STM Fidecs Life, Health and Pensions Limited (FLHP) and STM Fidecs Trust Company Limited (FTCL).
Following a Skilled Person report completed on 8 June 2018, STM Fidecs, Gibraltar, have worked co-operatively and closely with the GFSC and have successfully fully remediated 32 actions and recommendations arising from the Skilled Person’s report and have implemented improvements to its policies and procedures across the group.
STM Fidecs, Gibraltar, have implemented a more robust framework capable of ensuring that conflicts of interests and risks to independence are identified, recorded and appropriately managed. STM Fidecs, Gibraltar, recognise, understands and accepts that for a limited time some inconsistent AML / ‘know your client’ (KYC) policies existed across the group and over the same period. STM Life acknowledge and accept that its compliance, internal audit and risk management functions also fell below the standard expected of it for regulatory purposes.
STM Fidecs, Gibraltar, have collectively agreed to pay a financial penalty under the Supervisory Bodies (Powers etc) Regulations 2017 by way of an agreed regulatory settlement with the GFSC.
The companies’ status as regulated firms remains unchanged and no further action is contemplated.