Stm Grp. Regulatory News (STM)

2 April 2015

STM Group Plc

("STM" or "the Group")

Loan Notes Update, Significant Shareholdings,

STM Fiduciaire Compliance Update and AGM Date

STM Group Plc (AIM: STM), the multi-jurisdictional financial services group, today provides an update on the holdings of the convertible loan notes issued in May 2014 ("Loan Notes"), a change in significant shareholdings, an update on the regulatory issue within the Jersey Corporate & Trustee Services business, STM Fiduciaire Ltd (STM Fiduciaire), as notified in STM's 2012 annual report, and notification of the date of its annual general meeting ("AGM").

Loan Notes

The Company has been informed that Hearth Investments Ltd, a company that Michael Riddell, Chairman of STM Group, is a Director, has sold its Loan Notes with a value of £400,000.

Significant Shareholdings

STM has been notified that Arron Banks, through his associated holdings, has sold 7,130,000 ordinary shares of 0.1 pence each in the capital of STM ("Ordinary Shares"), reducing his holding to 2,090,261 Ordinary Shares, representing 3.91% of the issued share capital of the Group.

STM Fiduciaire

In 2012 the Jersey Financial Services Commission ("the Regulator") undertook an investigation into compliance procedures at STM Fiduciaire. The investigation concluded that STM Fiduciaire had acted swiftly to address the perceived failings and that no clients had been put at risk. STM Fiduciaire felt that matters had been brought to a satisfactory conclusion. The Attorney General for the States of Jersey has now notified STM Fiduciaire that it intends to pursue the prosecution of one of STM Fiduciaire's former employees and that STM Fiduciaire, as employer at the time, will be jointly charged as a defendant.

The Jersey court date has been set to start on 23 June 2015; the result of which will be notified to the market at the earliest opportunity. STM Fiduciaire has engaged advisers and intends to vigorously defend the actions of its former employee and itself. The Board of directors of STM Fiduciaire anticipates that in the event the Jersey Court rules against STM Fiduciaire, any fine will be manageable and payable out of STM Fiduciaire's existing resources.

Commenting on the prosecution, Colin Porter, Chief Executive of STM Group, said:

"STM Fiduciaire moved quickly to address the perceived failings of a well-regarded former employee which were highlighted by the Regulator in early 2012. We are satisfied that we took all possible steps in 2012 and 2013 to work closely with the relevant authorities in Jersey to resolve the matter, and that they had fully endorsed STM Fiduciaire's remedial actions at that time. 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."

AGM

STM is pleased to announce that the AGM will be held on Wednesday 13 May 2015 at 11am at 18 Athol Street, Douglas, Isle of Man, IM1 1JA. The annual report and accounts containing the notice of AGM is expected to be posted out to shareholders on 15 April 2015.

For further information, please contact:

Notes to editors:

STM is a multi jurisdictional financial services group which is listed on the AIM Market of the London Stock Exchange. The Group specialises in the administration of assets for international clients in relation to retirement, estate and succession planning and wealth structuring.

Today, STM has operations in Gibraltar, Spain, Jersey, Malta and Cyprus. The Group is looking to expand through the development of additional products and services that its ever more sophisticated clients demand. STM has, for example, incorporated a Gibraltar Life Insurance Company, STM Life plc, which provides life insurance bonds - wrappers in which a variety of investments, including investment funds, can be held. STM has developed a specialist international pensions division which specialises in Qualifying Recognised Overseas Pension Schemes (QROPS), Qualifying Non UK Pension Schemes (QNUPS) and Employer Funded Retirement Benefit Schemes (EFRBS).

Further information on STM Group can be found at www.stmgroupplc.com