Ashley Alder, the Securities and Futures Commission's chief executive, unexpectedly reversed his decision to leave Hong Kong’s regulator to accept a 3-year extension.
Ashley Alder made the decision due to concerns about the recovery from the Covid-19 pandemic and the continued maintenance of the financial system’s reliability and integrity.
«After a careful reassessment of the circumstances now facing Hong Kong and global economies and financial markets, and having discussed the situation with the Government, I have accepted an invitation to remain at the helm of the SFC,» he said in an SFC statement.
Market Integrity
Alder repeatedly stressed the importance of market integrity, specifically with regards to financial market fairness and impartial regulations in the midst of exceptional stress.
«As and when the global economy begins to recover from the Covid-19 pandemic, our job is to make sure that investors remain confident that Hong Kong’s financial markets are not only fair, but also that its regulations are impartial and fit for purpose amidst what will undoubtedly be a vastly different international financial landscape,» he said.
Alder's track record is well-aligned with his statements evidenced by the SFC’s historical willingness to take regulatory action under his watch from the issuance of fines to license suspension and, in even one case, license revocation. In the last two decades, the SFC issued $945.5 million ($12.88 million) in fines to 10 investment banks – all but $4.2 million were issued after Alder was appointed as its chief in 2011.
«Boost Confidence»
SFC chairman Tim Lui highlighted not only proven regulatory success and leadership but also the international attributes of Alder, namely «his standing in and influence in the international fora». Alder is concurrently the vice-chairman chair of the board of International Organization of Securities Commissions (IOSCO) and the chairman of IOSCO's APAC committee.
In the midst of the current crisis, Alder’s attributes were described by Lui as «all the more important to maintain integrity and stability of the Hong Kong financial market and significantly boost confidence of local and international investors».
Legal Heavyweight
Alder originally confirmed his decision to exit the SFC in October 2019 after nine years with the city’s securities regulator. Julia Leung Fung-yee, SFC’s deputy chief and a 20-year civil servant in Hong Kong, was widely viewed as the frontrunner for the job.
A law degree graduate from the University of Cambridge, Ashley began his legal career in London before joining Herbert Smith’s Hong Kong office in 1989 to practice corporate and business law. Afterward, he worked with the SFC from 2001 to 2004 before rejoining Herbert Smith as its regional head of Asia before rejoining the SFC again in 2011 as its chief. Alder is also a Justice of Peace, appointed by Hong Kong’s chief executive in 2014, and a Fellow of the Hong Kong Institute of Bankers.
