Press Release
VIS Reaffirms Broker Management Rating of BIPL Securities Limited
Karachi, March 2, 2021: VIS Credit Rating Company Ltd. (VIS) has reaffirmed the Broker Management Rating of BIPL Securities Limited (BIPLS) at ‘BMR2+’. Outlook on the assigned rating is ‘Stable’. Previous rating action was announced on March 31, 2020.
The rating signifies strong HR & infrastructure, sound regulatory framework, internal & external controls, client relationship management, and compliance levels whereas financial management is considered adequate.
Assigned rating takes into account BIPL’s improvement in net capital balances and sound board governance levels, however; formation of risk management committee would bode well in best corporate governance practices. On the internal control front, a separate conflict of interest policy may be included to strengthen the overall control framework. Holding period needs to be extended in employee trading guidelines while blackout periods for institutional and corporate trade are practiced. Control functions are autonomous and compliance of regulations is considered sound. The company does not maintain a propriety book which is aligned with best international practices. Given the increase in core brokerage income, earning profile has improved during 9MFY20 while cost-to-income ratio has improved by 59%; however, still remains on the higher side.
For further information on this rating announcement, please contact Mr. Muhammad Tabish (Ext: 204) or the undersigned (Ext: 306) at (021) 35311861-66 or email at info@vis.com.pk
Faryal Ahmad
Deputy CEO
Applicable Rating Criteria: Broker Management Ratings July 2020
https://s3-us-west-2.amazonaws.com/backupsqlvis/docs/BMR202007.pdf