Why Did ADSS Exit UK?!

ADS Securities London Limited (ADSSL), the British arm of ADSS, a brokerage group headquartered in Abu Dhabi, has initiated the process of winding down its operations in the United Kingdom. In a statement on its website, the firm cited a “strategic decision” made by its parent company to reallocate resources to other entities within the group as the reason for this move.

The Financial Conduct Authority (FCA) confirmed that ADSSL, which obtained its license to operate in the UK in 2012, submitted an application to cancel its license in June 2023. As a result, the local entity will eventually cease its operations, with ADSS stating that they will no longer accept new clients or manage existing ones through this subsidiary.

ADSS reassured stakeholders that despite this development, the group remains financially sound and remains committed to its growth strategy. The wind-down process of ADSSL will be conducted in an organized manner, in compliance with the obligations set forth by the FCA. The company encouraged anyone with inquiries to reach out for assistance.

Up until its decision to withdraw, ADSSL primarily provided contracts for difference (CFDs) trading services, including spread betting, mainly to retail and professional clients. Over the past few years, the firm had shifted its focus away from institutional investors.

Meanwhile, the UK subsidiary reported a remarkable 362% surge in profit for the fiscal year that ended on December 31, 2021. Revenue also experienced significant growth, increasing by 50% during the same period, amounting to £4.5 million.

However, when factoring in the deduction of income from the local entity's transfer pricing activities, the revenue actually reflected a decline of 34% compared to the previous year. ADSSL clarified in its filing with the UK Companies House that this reduction was a result of the company's ongoing transition from an institutional-centric approach to one centered around professional clients.

Earlier this month, two key executives from ADSSL, Ash Elgarf, Head of Dealing, and Dan Benton, Senior Sales Trader, left the company to join London Capital Group, a former competitor that now operates solely as an “introducing broker.”