Press Release
VIS Reaffirms Broker Fiduciary Rating of Foundation Securities (Private) Limited
Karachi, September 22, 2025: VIS Credit Rating Company Ltd. (VIS) has reaffirmed the Broker Fiduciary Rating of Foundation Securities (Private) Limited at ‘BFR3++’. Outlook on the assigned rating is Stable. Rating of BFR3++ denotes good fiduciary standards. Last rating action was announced on October 17, 2024.
The rating signifies strong management and client services, sound internal controls and regulatory compliance. Business and financial sustainability and ownership and governance framework is considered adequate.
Foundation Securities Private Limited (‘FSL’ or ‘the Company’), a subsidiary of Askari Bank Limited, offers equity brokerage services, with a limited presence in commodity segment and caters to domestic retail and institutions, high net worth individuals, and foreign broker dealers. The Company runs its operations through its head office based in Karachi, along with branches in Lahore, Islamabad, and Rawalpindi. The Company holds a Trading Right Entitlement (TRE) certificate issued by the Pakistan Stock Exchange Limited (PSX), holding a Trading & Self- Clearing license and license of Pakistan Commodity Exchange (PMEX). External auditors are Grant Thorton Anjum Rahman Chartered Accountants. External auditors are on the approved list of auditors in category ‘A’, published by the State Bank of Pakistan (SBP).
Assigned rating incorporates the Company’s ownership and governance framework, with strong sponsor support continuing to provide comfort to the rating. The board of directors comprises five members but does not include independent representation. Inclusion of independent and certified directors, along with the expansion of board committees with a more diversified composition, may enhance the Company’s governance framework. Rating also takes into account the Company’s strong management and client services, supported by customer facilitation tools, online trading platforms, and established contingency measures. However, investor grievance procedures may be enhanced for greater visibility on the website. In addition, expanding business development avenues may facilitate customer reach. While internal policies of the Company are in place, expanding the scope of these policies may further enhance the internal control framework of the Company. Moreover, ensuring compliance with all applicable regulations will remain important from the rating’s perspective.
Assessment of the financial profile reflects growth in operating revenue, primarily driven by an increase in the brokerage revenue, in tandem with an industry wide surge in trading volumes. Cost-to-income ratio of the Company is considered moderate. The Company has low market risk, with no involvement in proprietary trading. Liquidity and capitalization profile of the Company is assessed as adequate. Going forward, revenue diversification, alongside improvement in efficiency, liquidity and capitalization profile will be important for the rating.
For further information on this rating, please contact at 021-35311861-64 or email at info@vis.com.pk.
Applicable Rating Criteria: Broker Fiduciary Ratings:
https://docs.vis.com.pk/Methodologies%202024/Broker-Fiduciary-Rating.pdf
VIS Rating Scale
https://docs.vis.com.pk/docs/VISRatingScales.pdf