Hunt for new SEC DG elusive

• Fresh call for applications after respondents to first attempt fail to fully satisfy Commissioners
• New ad states remuneration package negotiable

The hunt for the new Director General of the Securities and Exchange Commission (SEC) appears elusive as the capital market regulatory body is advertising afresh for a suitable candidate.

The first attempt saw over a dozen apply, but only seven turned up for interviews, with at least four withdrawing their original intention. The search narrowed to a few, but after being not overly satisfied, the SEC had decided a fresh call for applications was warranted.

The Daily FT learns that SEC Commissioners had felt it was in the best interest to re-advertise to give all a fresh opportunity. The option of negotiated remuneration package is also likely to draw better and more qualified interests.

Ever since the DG post fell vacant after senior hand Malik Cader moved out on 2 November as well as the exit of previous Chairperson Indrani Sugathadasa, and following the controversies involving high net worth investors and the regulator, many analysts have noted that future appointee would have a greater onus to steer the SEC. The Commissioners are apparently mindful of this fact, hence opting for a thorough search for the ideal candidate.

The first attempt drew applications from within and outside the SEC and among those in the latter category were several top professionals. Some had backed out due to the low salary scale, whilst others had opted out voluntarily after second thoughts.

Taking cognisance of this drawback, the new ad states that that the (DG) position offers an excellent working environment, which is professional, challenging and intellectually stimulating with an attractive and negotiable remuneration package in keeping with the qualifications and experience of the successful candidate.

The SEC is emphatic that effective regulation is key to restore confidence in the capital markets, whilst some continue to lament that despite changes at the top, several existing staffers remain adamantly in favour of excessive regulation.

The deadline for fresh applications is 21 February. See Page 7 for the SEC advertisement.

Despite easing of broker credit rules in mid January, return of foreign investors and impressive corporate earnings, the Colombo stock market continues its struggle with year-to-date negative return at 8.45% as of Monday after being 10th best last year and Asia’s best in 2009 and 2010.

On Monday foreign investors were net sellers to the tune of Rs. 629 million, ending three straight sessions of inflows. Foreign investors have been net buyers of Rs. 250.1 million so far this year, after net outflows of Rs. 19.1 billion last year.

The DG will be responsible for executing the overall policies of the SEC in regulating and developing the capital market, management and direction of all affairs of the SEC and its operating activities and discharging duties assigned by the Commission.

Among other criteria, candidates should have a Bachelors Degree from a recognised university in law, finance, economics, management or business administration and/or equivalent professional qualifications from a recognised institution along with relevant postgraduate degree qualifications, with 10 years of work experience. Those who do not have a postgraduate qualification must have 15 years of experience in the relevant field at top managerial level in either the Government or the private sector.

Candidates should be below 50 years of age whilst that criterion will not be applicable to Government employees and internal candidates. Candidates from other Government agencies would be considered on a secondment basis, it said.