Press Release
VIS Reaffirms Broker Management Rating of AKD Securities Limited
Karachi, March 4, 2019: VIS Credit Rating Company Ltd. (VIS) has reaffirmed the Broker Management Rating of AKD Securities Limited (AKDSL) at ‘BMR2++’. Outlook on the assigned rating is ‘Stable’. The previous rating action was announced on December 20, 2017.
The rating signifies strong external control framework and client relationship management; sound regulatory compliance levels, internal controls, HR & IT services, risk and financial management.
The rating continues to factor in company’s sound compliance to regulations and board level governance; however, room for improvement in terms of Board size exists. Strengthening the same would enhance board oversight and avoid common members in board level committees.
Internal control environment is considered sound with sufficient and well-defined policies. Internal Audit (IA) and Compliance functions have been segregated to strengthen control environment. Improvement has been witnessed in reporting of personal trades and frequency of trade reviews for non-compliant and suspicious trades. Moreover, financial profile of the company demonstrated a healthy growth despite slowdown in economic and stock market activity. Fall in brokerage income due to lower market volumes was supported by a significant one off reversal of doubtful debt and increase in underwriting commission. Improvement was also witnessed in curtailment of variable expenses.
For further information on this rating announcement, please contact the undersigned (Ext: 201) at (021)35311861-71 or fax to (021)35311872-3.
Javed Callea
Advisor
Applicable Rating Criteria: Broker Management Ratings 2017
http://vis.com.pk/docs/BMR201701.pdf