VIS Assigns Initial Broker Fiduciary Rating to Chase Securities Pakistan (Private) Limited

Karachi, January 26, 2023 (PPI-OT):VIS Credit Rating Company Ltd. (VIS) has assigned initial Broker Fiduciary Rating of ‘BFR3’ to Chase Securities Pakistan (Private) Limited (CSPL). The assigned rating denotes good fiduciary standards and signifies sound management and client services, while ownership and governance, internal controls, regulatory compliance and business and financial sustainability are considered adequate.

Assigned rating takes into account governance framework consisting of two directors and one Board level committee. Inclusion of more board members along with independent representation may be considered to strengthen overall governance framework. Given Company is in the initial stage, internal policies and controls are in the process of being developed. While internal audit is outsourced which is viewed favourably, segregation of risk and compliance may be considered. This may also facilitate clarity in reporting lines. Management and client services are considered sound. Provision of web based online trading services are available to facilitate customers. At present, the Company’s research department is in the process of being set up and resources are being arranged which is expected to enhance customer satisfaction and retention in the long run.

Amidst slowdown in market activity during FY22, the Company was able to generate reasonable brokerage revenue in the first full year of operations, albeit incurring net losses due to higher administrative expenses. The Company’s market risk is considered to be on the lower side on account of small proprietary trading book. Liquidity and capitalization indicators are considered adequate. Going forward, augmentation of revenues while managing cost to income ratio and gearing profile will remain important for rating.

The company holds Trading Rights Entitlement Certificate (TREC) granted by Pakistan Stock Exchange Limited (PSX), and is registered with SECP to provide Trading and Self Clearing Services. External auditors of the company are M/s. UHY Hassan Naeem and Co. Chartered Accountants. External auditors belong to category ‘B’ on the approved list of auditors published by the State Bank of Pakistan (SBP).

For more information, contact:
Director Compliance and Rating Analytics,
VIS Credit Rating Company Limited
VIS House, 128/C, 25th Lane off Khayaban-e-Ittehad,
Phase VII, DHA, Karachi, Pakistan
Tel: +92-21-35311861-72
Fax: +92-21-35311873

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