Press Release

JCR-VIS Assigns Broker Management Rating to Foundation Securities (Private) Limited

Karachi, May 28, 2018: JCR-VIS Credit Rating Company Ltd. (JCR-VIS) has assigned initial Broker Management Rating of ‘BMR2’ to Foundation Securities (Private) Limited. Outlook on the assigned rating is ‘Stable’.

The rating signifies sound internal and external control framework, client relationship, risk management and HR & IT infrastructure while financial management and regulatory compliance level are adequate.

Assigned rating represents FSL’s compliance to regulation and corporate governance as adequate. Increase in size of BOD and inclusion of independent director would positively impact the board level governance whereas more comprehensive policy framework would add clarity and provide better management of conflict of interest. A sound customer relationship process is in place providing comprehensive and proactive services to the customers. Segregation of internal audit from compliance and independent functioning of risk management and compliance functions would strengthen supervision of regulatory compliance. The rating also factors in significant dependency of FSL on equity brokerage for revenue generation; diversification in the same would reduce concentration risk. Organizational and IT structure are sound; also the company’s risk profile is contained with the policy of not carrying a propriety book.

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

Information herein was obtained from sources believed to be accurate and reliable; however, VIS Credit Rating Company Limited (VIS) does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. VIS, the analysts involved in the rating process and members of its rating committee do not have any conflict of interest relating to the rating(s)/ranking(s) mentioned in this report. VIS is paid a fee for most rating assignments. This rating/ranking is an opinion and is not a recommendation to buy or sell any securities. Copyright May 28, 2018 VIS Credit Rating Company Limited. All rights reserved. Contents may be used by news media with credit to VIS.