Securities watchdog Wheatley resigns early
Securities and Futures Commission chief executive Martin Wheatley announced his early resignation yesterday raising concerns that the regulator's recent run of success against white collar crime could come to an end.
Wheatley will leave in early June next year for 'personal reasons', four months before his contract was due to expire at the end of September.
During the past six years, the SFC under Wheatley and his executive director of enforcement Mark Steward has spearheaded a crackdown on insider dealings, market manipulation and other white collar crimes. Wheatley's announcement led some in the market to question if the tough stance will change.
Alan Ewins, a partner at law firm Allen & Overy, said Wheatley's departure 'will be a crossroads in Hong Kong regulatory reform'. Wheatley and Steward had achieved stability in regulatory enforcement and 'that equilibrium will be tested in the wake of his departure', said Ewins.
Under Wheatley's watch, insider traders have been jailed for the first time and directors disqualified for incompetence. He joined the SFC in June 2005 and was appointed chief executive in 2006. Before that he was deputy chief executive of the London Stock Exchange. He earned HK$9 million last year and is the third-highest paid regulator.
Wheatley said his departure would not lead to a 'change in the tone and style of the SFC'.
He could not comment on whether Steward would renew his contract when it expires in September 2012.
He said: 'Mark is a key player in the strong team which I leave behind for the SFC.'
He added: 'The strong enforcement action, I believe, will continue. The style of the organisation will not change because of any individual change.' Steward's three-year contract was renewed only at the last-minute last year and his future after the departure of Wheatley will now be a under the spotlight.
Wheatley denied any pressure from the government to leave.
He also denied it had anything to do with a protest by Lehman minibond investors outside the SFC office in Chater House last week that saw investors burn Wheatley's picture.
After Lehman collapsed in September 2008, thousands of investors complained about being misled by banks or brokerage staff.
He said: 'This is a personal decision and not related to any incident. In the summer of next year I will have been in the SFC for six years. It is quite enough. It is time for I and my family to return to the UK.'
He believes the government will choose someone with integrity, professionalism and the right values to be his successor.
Secretary for Financial Services and the Treasury Professor Chan Ka-keung described Wheatley's departure as 'a loss to the SFC'.
He said: 'Mr Wheatley has successfully led the SFC in responding to a global call for tightening regulation of investment products and market activities. Hong Kong's financial regulatory framework has been strengthened following the 2008 international financial crisis.'
