STM extends fee waiver for new Rops

Added 25th October 2016

Cross border financial services provider STM Group, has extended its offer of a zero establishment fee for new Rops customers until 31 March 2017.

STM extends fee waiver for new Rops

STM, which recently bought UK Sipp provider London & Colonial, said the offer applies to all its Gibraltar and Malta stand-alone Rops, including Australian and US plans.

The establishment fee was first waived in April of this year and STM said its continuation was driven by a significant increase in new business numbers and the greater recurring revenue stream that results.

"We have seen a significant uplift in average monthly new business since we commenced the zero establishment fee initiative,” said Iain Farr, STM Group’s head of distribution.

"The extension of this initiative coupled with the recent acquisition of London & Colonial should ensure a place for the STM range of products on advisers’ list of potential solutions,” Farr said.

Falling Rops sales

STM’s price move comes as some in the Rops industry have talked of a decline in sales in recent years, in part due to the introduction of the UK pension reforms in April last year

Insurance giant Old Mutual International (OMI) said it saw a sharp drop in sales of Rops, which along with challenging economic conditions saw the insurance giant’s net client cash flows plummet by 33% in the first-half of 2016.

A UK tax authority's crackdown on overseas schemes, particularly from Australia, has also dampened demand.

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Richard Hubbard

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Richard Hubbard is the group editor at Last Word. He is responsible for the editorial content of International Adviser, Portfolio Adviser, Expert Investor and Fund Selector Asia. Richard previously worked for Thomson Reuters and has covered the financial services industry and investment themes from its offices in London, Singapore, Hong Kong and New York. Richard started his career at the Australian Financial Review in Sydney.

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