Karachi, January 09, 2019 (PPI-OT): JCR-VIS Credit Rating Company Ltd. (JCR-VIS) has reaffirmed the Broker Management Rating of Adam Securities Limited (ASL) at ‘BMR3++’. Outlook on the assigned rating is ‘Stable’. The previous rating action was announced on November 21, 2017. The rating signifies sound external control framework and risk management along with adequate regulatory compliance levels, internal controls, client relationship, HR and IT services and financial management.
The rating reaffirmation takes into account ASL’s adequate regulatory compliance levels. However, increase in board size, constitution of board level Risk Management Committee and chairing of Board Audit Committee (BAC) by an independent director would add to governance level. Moreover, internal control and compliance environment may be strengthened by well-defined and stringent policies for employee trading and conflict of interest. Internal audit and risk management function may be segregated for clarity and control purposes.
ASL’s earning profile witnessed a downward trend on account of decrease in core brokerage income and significant deduction in capital gains; however, profitability drew support from improved underwriting commission during the year FY18. Going forward, diversity in income stream is considered important.
For more information, contact:
Director Compliance and Rating Analytics,
JCR-VIS Credit Rating Company Limited
VIS House, 128/C, 25th Lane off Khayaban-e-Ittehad,
Phase VII, DHA, Karachi, Pakistan