The FCA has fined former JP Morgan Cazenove chairman Ian Hannam £450,000 after the Upper Tribunal upheld its decision to impose the penalty for market abuse.
The regulator sought to fine Hannam £450,000 in April 2012 after it judged he disclosed inside information in two emails sent in September and October 2008 to a prospective client.
The emails contained inside information relating to Heritage Oil Plc, an existing JP Morgan client for which Hannam was the lead adviser.
Hannam referred the matter to the Upper Tribunal.
The Upper Tribunal upheld the regulator’s decision in May but said it was still considering whether the £450,000 penalty was appropriate.
In a final notice published today, the FCA confirms the £450,000 fine.
The regulator said one of the emails sent in September 2008 by Hannam contained information about a potential offer for Heritage and the second, sent in October 2008, contained information about a new oil find by Heritage.
The decision notice stated that the FSA accepts that Hannam did not set out to commit market abuse but considers Hannam’s failings were serious in view of his experience and senior position within JP Morgan.
FCA director of enforcement and financial crime Tracey McDermott says: “This has been a long and complex case but the Tribunal’s judgment is a landmark.
“It should leave market participants in no doubt that casual and uncontrolled distribution of inside information is not acceptable in today’s markets.
“Controlling the flow of inside information is a key way of preventing market abuse and we would urge all market participants to pay close attention to the judgment.”