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.
