Press Release
JCR-VIS Reaffirms Broker Management Rating of Topline Securities Limited
Karachi, February 6th, 2019: JCR-VIS Credit Rating Company Ltd. (JCR-VIS) has reaffirmed the Broker Management Rating of Topline Securities Limited (TSPL) at ‘BMR2’. Outlook on the assigned rating is ‘Stable’. The previous rating action was announced on November 7, 2017.
The rating signifies strong HR & IT services; sound external control and risk management along with adequate regulatory compliance levels, internal control framework, client relationship and financial management.
The rating continues to factor in TSPL’s adequate compliance to regulations and board level governance; however; constitution of Board level Risk Management Committee would further add to corporate governance standards. Independent director chairing the BAC Committee is in line with international best practices.
Internal control environment is considered effective with sufficient and well-defined policies. Conflict of interest policy is duly being shared with both staff and clients in order to strengthen controls. More stringent employee trading guidelines would enhance the control environment. Moreover, earning profile of the company has remained under pressure due to decline in market volumes. Operating efficiency was reported higher during FY18 on account of decline in brokerage revenue; however the same compares well to peers. Going forward, diversification in revenue streams is expected given corporate finance & advisory service pipeline.
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://jcrvis.com.pk/docs/BMR201701.pdf