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Home » Business News, General Business News

VIS Reaffirms Broker Management Rating of Foundation Securities (Private) Limited

July 10, 2019

Karachi, July 10, 2019 (PPI-OT): VIS Credit Rating Company Ltd. (VIS) has reaffirmed the Broker Management Rating of Foundation Securities (Private) Limited at ‘BMR2’. Outlook on the assigned rating is ‘Stable’. The previous rating action was announced on May 28, 2018.

The rating signifies strong risk management; sound internal and external control framework, client relationship and HR and IT infrastructure with adequate financial management and regulatory compliance levels. The rating reaffirmation takes into account FSL’s adequate board level governance. However, increase in Board size along with appointment of an independent director and chairing of Board Audit Committee (BAC) by the same would positively impact the board level governance.

Internal control environment is considered effective with sufficient and well-defined policies while further improvement was witnessed in employee trading guidelines. Moreover, appointment of independent head of internal audit has improved the overall risk management. Organizational and IT structure are sound; also the company’s risk profile is contained with the policy of not carrying a propriety book. Grading, however, is constrained on account of business risk being concentrated in brokerage activity only. Diversification in to advisory, underwriting and other services may reduce business risk and enhance revenue generation.

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
Email: bilal@jcrvis.com.pk
Website: https://www.vis.com.pk/

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