Despite the two investigations the company’s listing on the AIM London stock exchange resumed trading at midday on 14 November – the shares falling by as much as 30% in the first hour.
The Gibraltar Financial Services Commission is formally inspecting STM subsidiaries, which the group is challenging.
Following a site visit GFSC have told STM they have concerns about compliance, governance, and controls and the provision of professional and trustee services.
STM has said it has ‘strong grounds’ for continuing to block the appointment of inspectors through the Gibraltar Supreme Court at a hearing on 20 November.
A second unnamed STM employee arrested with Kentish has also been released from bail without charge.
Resignations
Kentish has resigned from two subsidiaries to protect their reputation, STM said.
On 2 November Kentish resigned from two Gibraltar regulated subsidiaries, being STM Fidecs Insurance Management Limited and STM Life Assurance PCC Plc.
STM said: “These resignations were purely voluntary and were to mitigate any potential reputational damage to the subsidiaries and to put in place the first steps of the relocation of the group’s head office out of Gibraltar.
“This move will also allow Mr Kentish to fully focus on furthering the strategic objectives of the Company.”
It is unclear if the subsidiaries Kentish quit are those under investigation by the GFSC.
Judicial review
In a statement, STM said it had lodged for a judicial review against the Royal Gibraltar Police (RGP) to the Supreme Court in Gibraltar.
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