JP Morgan Cazenove chairman of capital markets Ian Hannam has resigned after the FSA decided to fine him for market abuse.
The regulator published the decision to fine Hannam £450,000 yesterday.
The FSA says Hannam 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 J P Morgan client for which Hannam was the lead adviser.
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.
According to the Telegraph, former Tory leadership candidate David Davis has backed Hannam in his bid to fight the charge.
He said: “I really can’t find where the common sense charge is. There has been no benefit, no loss, no trade,
“To destroy someone’s career just to extend the law about what is considered insider information is beyond what is reasonable. You don’t try to convict people and then make it law. The FSA… have turned to scalp-taking missions.”