View more on these topics

FCA fines ex-JPM Cazenove chairman £450k for market abuse

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.” 


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm