STM Group, the cross border financial services provider, said on 11 April it had been informed by the Supreme Court that its application for leave to appeal the judgment of the Court of Appeal in the long-standing Adams v Carey case has been declined.
The original case was heard in March 2018 and relates to an investment made in 2012, prior to STM's acquisition of Carey UK Pensions LLP in February 2019, STM said.
"A condition of the acquisition was the indemnity on any claims in the Adams v Carey case, with the benefit of significant existing PI cover held by the vendors.
"The decision therefore does not directly impact STM's exposure in this case, but it will have implications for the Financial Services industry more broadly."
International Investment reported on 16 April that STM, the parent company of Options (formerly Carey Pensions), had issued a statement saying that following conversations with their auditors, Deloitte, the company's 2020 year end results will be delayed and it was expected that they would now be released in early May.
"A significant exercise is being carried out to determine whether the ruling has triggered an event which would require a provision, as defined by accounting standards, to be included in the Company's financial statements and, if so, requires audit testing to be carried out", STM said.
