ADSS Quits UK Market to ‘Refocus’ on Other Entities
ADS Securities London Limited (ADSSL), the British subsidiary of the Abu Dhabi-based brokerage group ADSS, has started to wind down its operations in the UK. The firm in a message on its website said the move follows a ‘strategic decision’ by its parent company to “refocus its resources on other entities within the Group.”ADSS Pulls Out of the UKAccording to the Financial Conduct Authority (FCA), ADSSL, which has been authorized to offer its services in the UK since 2012, applied to cancel its license in June 2023. As a result, the local entity “will close in due course,” ADSS said in the message, adding that the group “will cease to onboard and manage clients from this entity.”“The ADSS Group remains well-capitalised and continues to be focused on its growth strategy,” ADSSS explained. “The wind-down of ADSSL will be done in an orderly manner in accordance with our FCA obligations and we remain available to answer any questions you may have.”From Pivoting to QuittingUntil the decision to quit, ADSSL offered contracts for difference (CFDs) trading services, including spread betting, to mostly retail and professional clients. This is because the broker in recent years scaled back on its focus on institutional investors. Meanwhile, the UK subsidiary reported a 362% jump in profit for the fiscal year 2021 which ended December 31. The firm’s revenue also jumped by 50% during the period, reaching £4.5 million.However, when income from the local entity’s transfer pricing activities is deducted, the revenue represents a 34% year-over-year decline. The shrinkage was the result of a “continued pivot from an institutional-led offering to that of one centred around professional clients,” ADSSL explained in its UK Companies House filing.Earlier this month, ADSSL executives, Ash Elgarf, Head of Dealing, and Dan Benton, Senior Sales Trader, left the company to join London Capital Group, a former rival that is now only an 'introducing broker'. This article was written by Solomon Oladipupo at www.financemagnates.com.
ADS Securities London Limited (ADSSL), the British subsidiary of the Abu Dhabi-based brokerage group ADSS, has started to wind down its operations in the UK. The firm in a message on its website said the move follows a ‘strategic decision’ by its parent company to “refocus its resources on other entities within the Group.”
ADSS Pulls Out of the UK
According to the Financial Conduct Authority (FCA), ADSSL, which has been authorized to offer its services in the UK since 2012, applied to cancel its license in June 2023. As a result, the local entity “will close in due course,” ADSS said in the message, adding that the group “will cease to onboard and manage clients from this entity.”
“The ADSS Group remains well-capitalised and continues to be focused on its growth strategy,” ADSSS explained. “The wind-down of ADSSL will be done in an orderly manner in accordance with our FCA obligations and we remain available to answer any questions you may have.”
From Pivoting to Quitting
Until the decision to quit, ADSSL offered contracts for difference (CFDs) trading services, including spread betting, to mostly retail and professional clients. This is because the broker in recent years scaled back on its focus on institutional investors.
Meanwhile, the UK subsidiary reported a 362% jump in profit for the fiscal year 2021 which ended December 31. The firm’s revenue also jumped by 50% during the period, reaching £4.5 million.
However, when income from the local entity’s transfer pricing activities is deducted, the revenue represents a 34% year-over-year decline. The shrinkage was the result of a “continued pivot from an institutional-led offering to that of one centred around professional clients,” ADSSL explained in its UK Companies House filing.
Earlier this month, ADSSL executives, Ash Elgarf, Head of Dealing, and Dan Benton, Senior Sales Trader, left the company to join London Capital Group, a former rival that is now only an 'introducing broker'.
This article was written by Solomon Oladipupo at www.financemagnates.com.
