The Abu Dhabi-based brokerage group, ADSS, has decided to scale down its United Kingdom operations through its regional subsidiary, ADS Securities London Limited (ADSSL). This decision, announced on the company’s website, is a strategic move aimed at shifting resources towards other divisions within the group.
ADSS Set to Exit UK Market
ADSSL has been delivering services in the UK since 2012 under the Financial Conduct Authority’s (FCA) authorization and has submitted an application to relinquish its license in June 2023. Following this, the local unit will gradually close down, and the group will halt the acquisition and management of clients through this entity.
Despite these changes, ADSS has assured stakeholders that it continues to hold a robust financial position and is committed to its growth strategy. The phasing out of ADSSL will be conducted systematically and responsibly, in line with FCA guidelines.
Shifting Priorities Lead to Exit
ADSSL previously provided trading services for Contracts for Difference (CFDs) and spread betting, focusing on retail and professional clients. However, the company has decided to exit these services. It resulted from their recent shift in focus away from institutional investors.
For the fiscal year ending on December 31, 2021, the UK division reported a substantial profit surge of 362%, with revenues increasing by half, amounting to £4.5 million. However, when accounting for income derived from transfer pricing activities, there was a year-on-year revenue decline of 34%. This reduction was attributed to the firm’s ongoing transition from an institution-centric model to more focused on professional clients, as noted in ADSSL’s UK Companies House filing.
Two key executives from ADSSL – Ash Elgarf, the Head of Dealing, and Dan Benton, a Senior Sales Trader – have recently moved to the London Capital Group, a former competitor now operating primarily as an ‘introducing broker.’