Hong Kong’s SFC boss Ashley Alder opts to stay on three more years, citing coronavirus pandemic

Alder had said he would leave in September after nine years as chief executive of Hong Kong’s Securities and Futures Commission
The former lawyer said he wants to shepherd the city’s financial system through the coronavirus pandemic, as the economy tanks

Hong Kong economy

Alison Tudor-Ackroyd

Published: 6:57pm, 18 May 2020

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Ashley Alder, chief executive of Hong Kong’s Securities and Futures Commission, has decided to stay in post for three more years to shepherd the city’s financial system through the coronavirus pandemic.

He was due to step down in September after serving at the regulator for nine years.

Alder said in a statement on Monday that he wanted to “ensure that the financial system functions reliably and with integrity throughout a period of exceptional stress.”

Hong Kong’s economy suffered its worst decline on record, shrinking 8.9 per cent year on year in the first quarter, battered by the coronavirus pandemic and months of anti-government protests. “Our economic situation is very challenging. We are in deep recession,” Financial Secretary Paul Chan Mo-po said earlier this month.

His decision means there will be continuity at the top of the city’s securities watchdog even as Charles Li, one of the longest-serving chief executives of a global financial marketplace, has thrown in the towel after more than a decade as head of the Hong Kong stock exchange (HKEX), in a surprise announcement to let his contract lapse in October 2021.

Alder sees the challenge ahead as making sure investors remain confident that Hong Kong’s financial regulations are fit for purpose in what will be a vastly different international financial landscape once the coronavirus pandemic abates.

Alder, who has a Masters in Law from Cambridge university, was a lawyer for 20 years. He headed Asia for Herbert Smith Freehills, one of the world’s largest legal firms.

During his tenure at the SFC, Alder has worked with the China Securities Regulatory Commission on more cross-border cases and cracked down on shoddy IPOs in one of the world’s largest markets for listings.

In the last two decades, the SFC has imposed fines totalling HK$945.5 million (US$12.88 million) on 10 investment banks including UBS, Merrill Lynch, Morgan Stanley and Citigroup for failing in their duty as initial public offering sponsors in 11 problematic cases, according to calculations by the Post.

SFC’s Julia Leung Fung-yee was a potential successor to Alder. Photo: Dickson Lee

Julia Leung Fung-yee, Alder’s deputy at the SFC was the front runner for the chief executive officer’s job.

Alder was also appointed as the chair of the board of the International Organization of Securities Commissions (IOSCO) in 2016.

“Under Ashley’s leadership during the past nine years, the SFC has established itself as a world-class market regulator, recognised by its peers and market participants for its innovative regulatory approach and contributions to shaping global financial policies,” said the SFC’s chairman Tim Lui.

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This article appeared in the South China Morning Post print edition as: Alder opts to stay on as SFC chief for three years

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