Abstract：ADSS, an Abu Dhabi-based broker, has announced plans to shut down its London operation and withdraw from the UK online trading market. This significant shift follows a drop in the company's revenues and the loss of several top executives.
In a surprising turn of events, the Abu Dhabi-based retail and institutional FX & CFDs broker, ADSS, announced plans to shut down its London operation and withdraw from the UK online trading market. The move marks a significant shift in the firm's strategy in the region, which could reshape the landscape of the UK's online trading sector.
Since 2012, ADS Securities London Limited, the groups UK subsidiary, has been licensed by the Financial Conduct Authority (FCA). However, as part of its strategic decision to exit the UK market, ADSS has filed an application to cancel its FCA authorization. It's worth noting that this move will not affect ADSS's operations outside the UK.
During the financial period of 2021, ADSS UK observed a 34% drop in revenues, coupled with a similar decrease in client money held at the company. Around the same time, ADSS lost several of its top executives, including Paul Webb, the then-ADSS UK CEO, who later joined Equiti Capital, Roland Danielczyk, the Chief Compliance Officer, and Michael Taylor, the Head of Front Office. In an effort to drive growth, ADSS UK appointed Saxo Bank executive Anthony James as CEO, intending to draw more retail traders and diversify from its institutional client base.
Unfortunately, over the past few weeks, several ADSS London staff members have been let go, with more expected to leave soon. Some executives have already secured positions with different brokers, like Ash Elgarf and Dan Benton, who have now joined LCG.
Addressing the decision, an ADSS spokesperson stated: “Following a strategic review, the board of ADS Holding LLC has chosen to wind down the operations of its subsidiary, ADS Securities London Ltd. The decision to discontinue our regulated UK business is part of a strategic reallocation of capital and resources. ADS Holding will maintain staff in London as a non-regulated entity under ADS Technology Solutions UK Ltd to support our business and will continue to scout for growth opportunities globally.”
In addition, ADS Securities London Ltd has begun the process of notifying clients about its plan and is working closely with regulators to ensure an orderly wind-down of its UK business and relinquishment of its license.
ADSS, a subsidiary of ADS Holding LLC, is under the control of the renowned UAE businessman Mahmood Ebraheem Al Mahmood.
The company has issued a formal note to its UK clients, detailing the changes and providing information regarding its imminent exit from the UK market.
This development marks a significant transition for ADSS, whose presence in the UK has contributed significantly to the online trading scene. Its exit is likely to stimulate competitive dynamics, potentially leading to shifts in market positioning among remaining players.Statement from ADSS on its official website;
We regret to inform you that ADSSL has decided to withdraw from the UK market and is winding down its business. This follows a strategic decision from ADSSLs parent company to refocus its resources on other entities within the Group. This means that our FCA-regulated entity, ADSSL, will close in due course and we will cease to onboard and manage clients from this entity.
If the wind-down of ADSSL impacts you as a client, vendor, or supplier, you will have received communications from us detailing the next steps and any action you may need to take.
The ADSS Group remains well-capitalized and continues to be focused on its growth strategy. 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.
We thank you for choosing ADSSL as your trading provider and wish you success in the future.
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