ADSS Quits UK Market to ‘Refocus’ on Other Entities
<p>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.”</p><p>ADSS Pulls
Out of the UK</p><p>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.”</p><p>“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.”</p><p>From
Pivoting to Quitting</p><p>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 <a href="https://www.financemagnates.com/forex/brokers/ads-securities-london-revenues-spike-36-2017-bottom-line-black/" target="_blank" rel="follow">scaled back on its
focus</a> on
institutional investors. </p><p>Meanwhile, the UK subsidiary reported <a href="https://www.financemagnates.com/forex/uk-arm-of-adss-posts-362-jump-in-2021-profit/" target="_blank" rel="follow">a 362% jump in profit</a> for the fiscal year 2021 which
ended December 31. The firm’s revenue also jumped by 50% during the period,
reaching £4.5 million.</p><p>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.</p><p>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 <a href="https://www.financemagnates.com/forex/lcg-uk-is-now-only-an-introducing-broker/" target="_blank" rel="follow">an 'introducing broker'</a>.</p>
This article was written by Solomon Oladipupo at www.financemagnates.com.
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