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LONDON (Alliance News) - Cross-border financial services provider STM Group PLC on Tuesday said it has extended the zero-establishment-fee initiative for its QROPS applications following a rise demand for the product.
STM changed is pricing strategy for QROPS, or a qualifying recognised overseas pension scheme, in April this year, waiving the initial establishment fee for an initial six-month period due to end this month.
In a trading update in August, STM said it has seen a rise in new business for the QROPS products following the decision.
On Tuesday, STM said it has seen a "considerable uplift in average monthly new applications" for QROPS products since April compared to the first few months of 2016. As a result, it will extend the its policy of waiving the initial fee until March 2017.
"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," said STM Chief Executive Alan Kentish.
"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," Kentish added.
Shares in STM were up 2.6% to 48.75 pence on Tuesday.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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