Press Release

VIS Reaffirms Broker Management Rating of Foundation Securities (Private) Limited

Karachi, July 10, 2019: VIS Credit Rating Company Ltd. (VIS) has reaffirmed the Broker Management Rating of Foundation Securities (Private) Limited at ‘BMR2’. Outlook on the assigned rating is ‘Stable’. The previous rating action was announced on May 28, 2018.

The rating signifies strong risk management; sound internal and external control framework, client relationship and HR & IT infrastructure with adequate financial management and regulatory compliance levels.

The rating reaffirmation takes into account FSL’s adequate board level governance. However, increase in Board size along with appointment of an independent director and chairing of Board Audit Committee (BAC) by the same would positively impact the board level governance.

Internal control environment is considered effective with sufficient and well-defined policies while further improvement was witnessed in employee trading guidelines. Moreover, appointment of independent head of internal audit has improved the overall risk management. Organizational and IT structure are sound; also the company’s risk profile is contained with the policy of not carrying a propriety book. Grading, however, is constrained on account of business risk being concentrated in brokerage activity only. Diversification in to advisory, underwriting and other services may reduce business risk and enhance revenue generation.

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

Applicable Rating Criteria: Broker Management Ratings 2017

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 not an NRSRO and its credit ratings are not NRSRO credit ratings.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 2019 VIS Credit Rating Company Limited . All rights reserved. Contents may be used by news media with credit to VIS .

VIS Credit Rating Company Limited