The end of a 7-year love affair Julie Apted bows out as CMDA boss

Dionisia Tabureguci

Julie Apted...the woman whose name is synonymous with the capital market in Fiji.

When Julie Apted took over as chief executive of Fiji's Capital Markets Development Authority (CMDA) in 1998, it was the first time anyone in Fiji held such a position. In fact, the CMDA Act 1996 had only just come into effect and the entity's first board of directors had turned abroad for a chief executive.

"We had some international candidates but for some reason or the other, things did not work out for the ones on the shortlist. Then someone in the subcommittee suggested that a suitable candidate was staring at us in our faces. She was Julie Apted who was acting as secretary to the newly created CMDA board," recalls Lionel Yee, the first chairman of the CMDA board.
She "took on the task like duck to water," Yee said.

Seven years later, the well-spoken former Reserve Bank of Fiji finance officer has decided to call it a day so she could devote herself to family commitments.

But she is leaving behind a growing capital market as well as a reputation for being fair and not so easily swayed a regulator. "Tenacious and firm," was how Yee described her, "yet all for the good of the market."

Regulating the stocks, bonds and unit trust markets by keeping a watch over the professional conduct of licensed advisors and stockbrokers was not a task so easily executed. Simply because you had to be the one knocking these intermediaries into place if they broke the rules or unwittingly commit a misdemeanor.

The CMDA Act did not mince words when it came to defining devious conducts, or that a rule has been breached. "It is difficult to be a regulator," says Apted.

"When regulating the capital markets, I always try to ensure CMDA was accurate, courteous, impartial, fair and transparent in its regulation."

In relating her experience on the job, Apted tracks down her observation very meticulously and carefully. One principle that she has always upheld was to take great care when it came to taking intermediaries to task. After all, there have been cases of price manipulation, insider trading and other unsavoury practices that did not auger well to efforts put into developing the markets and boosting investor confidence.

"In my experience, most breaches of the rules occur because of a lack of understanding or awareness," Apted states.

"Because of this, in most cases the CMDA issues warning letters and requests that the practices are stopped. However, the CMDA takes much stronger action against intermediaries if the breach involves market integrity, or if an investor has been harmed. This is not a job you do if you want to be liked. I only hope that even if the intermediaries have not liked our regulatory activities, they at least believe that the CMDA is making the right decisions, is fair and that in the long run, firm regulation of the capital markets will be of benefit to them and their businesses."

But often, the very existence of a strong regulatory framework would pose an interesting dilemma for Apted and the CMDA team of decisionmakers and would do an about-face to become a major headache.

"How much regulation is required to keep the markets fair and honest, and at the same time not put off potential participants? We ask ourselves this question daily at CMDA," says Apted.

"We would prefer the intermediaries to recognise the importance of strong compliance in protecting both their interests and those of their clients rather than having to actively regulate and enforce legal requirements on them," she adds.

"The worst part was constantly trying to determine how much regulation was appropriate to the situation at hand. The CMDA (board) members regularly assess whether or not, the CMDA's regulatory activities are good for the markets or stifling growth. As this is a judgment call, it can be very difficult."

The second integral part of CMDA's role is the development of the markets. It is a fact that some still joke about the lack of trading activities at the South Pacific Stock Exchange (SPSE), bond trading is virtually non-existent and people still confuse Unit Trust of Fiji (UTOF) to units in general.

But that is not to say that things had been stagnant or are getting worse, as indicators point to a level of growth in awareness as well as participation.

Says Apted: "When we started operations, there were 11 CMDA members, two CMDA staff and SPSE was called the Suva Stock Exchange (SSE) and was operating from FNPF Place.

The SSE also operated as a broker and FNPF operated Mercury Securities. UTOF was already in operation. Market capitalisation of the eight listed companies was $144 million and 170 trades valued at $2.9 million had traded on the SSE.

"Funds under management at UTOF (Unit Trust of Fiji) were around $20 million held by 1169 unit holders. At the end of 2004, we traded close to $13 million on SPSE in 900 trades; the unit trusts manage over $130 million, owned by close to 10,000 unit holders, and there are over 6600 shareholders. SPSE's market capitalisation is $882 million and there are 16 listed companies. I can also now boast having eight full-time staff at the CMDA."

The other major progress is that there are 47 licensed persons in the market. This is the kind of growth that tickles Apted, as well as those directly involved in the development of the markets.

This has led her to describe her work as "not an ordinary job but a kind of love affair that has consumed me for the past seven years".

The excitement is indeed there when one is trying to demonstrate how effective the capital market can be in financing businesses with equity and debt capital while at the same time providing attractive investment opportunities for the people of Fiji.

"What impresses me the most is the market's ability to give the general public equal access to the same wealth creating opportunities that Fiji's successful businesspeople have. A lot of us may not have the entrepreneurial nature to start our own businesses. But by buying shares in the stock market, we can be just as successful as the leading business personalities in our community. This, I believe, is the true power of the market to change Fiji's future for the better and is the reason every effort should be made to continue to grow the capital market in Fiji," Apted says.

As the days near for her to fully hand over the reins to her successor, former Westpac finance man Suren Kumar, the woman whose name had become synonymous with the capital market in Fiji sums up her term with a hint of sadness: "This has been a fantastic job and it will always be a great memory. I wouldn't say the job has been easy but it has certainly been very rewarding."

Apted is heading to Australia for at least the next three years to study law and follow in her brother Jon Apted's footsteps. Jon is a prominent Suva lawyer, now in private practice. He's a former Supervisor of Elections.