Regulators attending this weeks Asia Financial Forum
predicted an increase in private sector recruitment this year
and called for new hires to be paid on par with the private
Regulatory panelists in the Dialogue with Regulators session
said they expected to see an increase in private-sector hires
going forward as financial products grew more complex.
The regulators noted there was now much more movement
between the public and private sectors. Career regulators are
becoming a rarity.
The chairman of Dubai Financial Services Authority, Saeb
Eigner said he had seen regulators shift to hiring people from
the industry and the private sector in the last ten years. He
added that financial products were becoming more complex, and
that there were now more of them.
To expect regulators to be always ahead of the curve
is really very challenging and almost impossible, he
said. You need to recruit from the private sector, and
then you have to pay as they do in the private
Greg Medcraft, chairman of the Australian Securities and
Investments Commission (Asic), agreed. He said that it was
important to hire staff with industry experience and expertise
so that regulators were on a level playing field when dealing
with industry. He also supported recruiting a diversity of
skills into regulatory authorities.
Delegates at the event, however, expressed fears regulatory
hires from the private sector would encourage cronyism.
But Medcraft said former investment bankers recruited into
Asic were usually more cynical than normal regulators.
Its almost like poachers turned gamekeepers;
theyre more religious than anyone else, he said.
They can actually see through some of the games that are
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