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.
