The United Kingdom’s financial markets watchdog, the Financial Conduct Authority (FCA), on Wednesday exposed another fraudulent entity, this time bringing to light a clone that has been posing as ADS Securities, the former brand name of ADSS, one of the heavyweight FX and CFD brokers in Europe and the Middle East.
London-based brokerage ADS Securities London Limited is a subsidiary of ADSS LLC which is authorized by the Central Bank of the UAE. The Abu Dhabi-headquartered parent company works in partnership with ADSS London, which is regulated by the FCA in the UK, and both are wholly owned subsidiaries of ADS Holding LLC. The FCA-regulated entity which is accessible online via www.adsprime.co.uk, is based at 125 Old Broad Street, London, UK.
By contrast, the company’s clone, Prime by ADS Securities, has been operating via several websites including http://www.hbblmw.com and www.ads-securites.com/home.
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Finance Magnates found that the associated website for the clone firm has been suspended. The exact details of this company’s operations are therefore unavailable, however, it is clear from the domain name that its operators were attempting to deceive investors into believing that it was ADSS Prime.
An old, but growing trend in the industry
This latest case is one of many clones that have attempted to scam individuals through the deployment of illicit means and misleading information. The FCA added in its statement that clones employ the tactic of adopting a legitimate company’s name when they cold call potential victims, and thus urges caution in the event that they are contacted by anyone claiming to work for the firm in question.
The watchdog has also advised investors to ensure that they only deal with financial firms that are authorized by checking the Financial Services Register.
Last month, we reported on ADSS after the company brought in financial industry veteran Lesley Kumar to its board. The FCA-regulated brand had its sights on growing its business in the aftermath of the recent ESMA regulations, which have abruptly redefined the retail brokerage space. In light of these changes, ADSS has opted to diversify its product range and clientele, culminating in new hires and strategies.