LeapRate has learned via regulatory filings that FCA regulated broker ADS Securities London Limited, the UK arm of Abu Dhabi based broker ADS Securities LLC, has had its auditor Ernst & Young resign.
No word has been received about a replacement for Ernst & Young at ADS.
ADS entered the UK market in late 2015 via the acquisition of Pioneer Trader Limited, formally launching its London office in early 2015. Pioneer’s auditor had been BDO LLP, and ADS replaced them with the larger Ernst & Young last year.
However ADS has had a rough run of it lately. ADS UK saw its net loss balloon to £5.5 million in 2015. And its CEO since ADS came to the UK, James Watson, recently resigned. ADS has been making a big push into the institutional ‘prime of prime’ brokerage space out of the UK, however that market has become increasingly crowded and competitive during 2016.
The Ernst & Young resignation letter read as follows:
25 October 2016
ADS Securities London Limited
125 Old Broad Street
London EC2N 1AR
ADS securities London Limited
Company Registered Number 07785265
In accordance with section 516 of the Companies Act 2006, we write to notify you of our ceasing to hold office as auditor of ADS Securities London Limited. This takes effect from the date on which you receive this letter.
In accordance with section 519(3B) of that Act, we confirm that there are no reasons and no matters, connected with our ceasing to hold office which we consider should be brought to the attention of the members or creditors of the company.
We draw our attention to the fact that ADS Securities London Limited has its own statutory obligations where we have ceased to hold office (as detailed, in particular, in Sections, 520 and 523 of the Act), including, depending on the reasons, the requirement to notify the appropriate audit authority if we cease to hold office before the end of our term of office as auditors.
If you have any questions on your legal obligations we recommend that you seek legal advice.
Ernst & Young LLP
ICAEW Registration Number – C009126168