The following news article was posted Thu, 2nd Apr 2015 09:56 LONDON (Alliance News) –
- Financial services company STM Group PLC Thursday said regulators in Jersey are planning to prosecute its STM Fiducaire unit and a former employee over the investigation into compliance procedures at the division in 2012.
- STM said the Jersey Financial Services Commission opened an investigation into STM Fiducaire, the company’s Jersey-based wealth management business, into compliance procedures in place at the company. That investigation concluded STM had acted swiftly to correct the perceived failings and that no clients had been put at risk. It added STM Fiducaire felt the investigation had been brought to a satisfactory conclusion at that time.
- But the Attorney General for the States of Jersey has now said it intends to pursue the prosecution of a former STM Fiducaire employee and said STM Fiducaire will be jointly-charged as a defendant due to it being the employer at the time of the offence.
- The case is due to open in June and STM said it has engaged advisers with the intention to “vigorously defend” the actions of both the former employee and STM Fiducaire. STM said it expects any ruling against the company to result in a manageable fine to be paid out of STM Fiducaire’s existing cash resources.
- “We are disappointed that this prosecution is being brought four years after the alleged incident. STM Fiduciaire continues to maintain an open, transparent and on-going relationship with the Regulator,” said STM Chief Executive Colin Porter.
- STM shares were down 10% to 30
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