XSEC012I and XAPI006I Command Line Interface network channel lost issuing "direct" command

Symptom

[nzcdunixdga@nzdas01v ~/ndm/bin] $ ./direct

**************************************************************
* *
* Licensed Materials - Property of IBM *
* *
* IBM(R) Sterling Connect:Direct(R) for UNIX 4.2.0.2_iFix020 *
* Build date: 20Apr2015 *
* *
* (C) Copyright IBM Corp. 1992, 2014 All Rights Reserved. *
* *
**************************************************************

Failed to obtain connection to Connect:Direct server, exiting.

XSEC012I  Return Code: 8  Feedback: 0
 
XAPI006I  Return Code: 8  Feedback: 0
          Command Line Interface network channel lost.


In the Sterling Connect:Direct for Unix logs, the following information is shown when executing:

 [nzcdunixdga@nzdas01v
~/ndm/bin] $ ./direct

STAR=20150603 11:36:42.527|CCOD=8|RECI=XSEC|RECC=CAEV|TZDI=43200|

MSGI=XSEC007I|MSGT=Keyfile directory permissions are wrong.  Message ID XSEC007I, rc=8, fdbk=0.
STAR=20150603 11:36:42.528|SSTA=20150603 11:36:42|STRT=20150603

11:36:42|CCOD=8|RECI=SGON|RECC=CAEV|TZDI=43200|MSGI=XCMM043I|MSGT=User

sign on failed. Error = XSEC007I
STAR=20150603 11:36:42.528|RECI=CXIT|RECC=CAEV|TZDI=43200|MSGT=CMGR

exited.  Pid=5606.  Exitcode=0.