03.04.2012
By Simon Miller
JP Morgan Cazenove's chairman of capital markets Ian Hannam is to be fined £450,000 for market abuse.
A decision notice dated 27 February notes that the Financial Services Authority has indicated that it will fine Hannam for two instances of market abuse where he disclosed information about JP Margan client Heritage Oil in two emails to a prospective client.
An email sent in September 2008 contained information about a potential offer for Heritage and while a following October email contained information about a new oil find by Heritage.
The Decision Notice states that the FSA accepts that Hannam did not set out to commit market abuse but considers that Hannam’s failings were serious in view of his experience and senior position within JP Morgan.
Tracey McDermott, acting FSA director of enforcement and financial crime, said: “Inside information is extremely valuable and must be handled with care to ensure that it is properly controlled and that appropriate safeguards are observed. This applies to all market participants but is particularly important for senior practitioners who will regularly interact with a wide circle of contacts”.
Hannam has referred the matter to the Upper Tribunal where he and the FSA will each present their case. The Tribunal will then determine the appropriate action for the FSA to take. The Tribunal may uphold, vary or cancel the FSA’s decision. The Tribunal’s decision will be made public on its website.
The decision notice can be found here.
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