The GFSC visited STM subsidiaries and at its centralised compliance centre in April, June and March and found deficiencies in compliance, governance and controls and the provision of professional and trustee services.
Under the appointment of inspectors power the GFSC wants to question employees under oath and access documents.
However, STM took the regulator to court and placed a privacy order on the probe.
STM have said they had “strong grounds” for the appeal and the two organisations were set to clash in Gibraltar’s Supreme Court next week.
Instead the GFSC has agreed to a ‘voluntary stay’ court order, which is being finalised today. A new court date has also been slated for 22 January.
STM said the subsidiaries are hoping to “establish a collaborative way forward through dialogue” with the regulator.
The cross border financial services provider is also set to return to court to block the Royal Gibraltar Police’s Anti Money Laundering unit, which has arrested and released without charge two STM employees including chief executive Alan Kentish.
