LONDON: A top banker at JP Morgan Cazenove, a London-based unit of US investment banking giant JP Morgan, quit his job on Tuesday (3 April 2012) after Britain's financial watchdog fined him for alleged market abuse.
Ian Hannam, chairman of capital markets at JP Morgan Cazenove, said he was resigning to appeal a decision by the Financial Services Authority to fine him £450,000 (539,000 euros, $718,000) for two instances of improper disclosure.
"I am appealing a decision notice issued by the FSA today and have consequently decided to resign from JP Morgan," Hannam said in a personal statement. "I will complete my current client commitments and ensure a smooth handover of responsibilities. Appealing the case while still at the firm would be an unfair distraction to my clients and colleagues."
In a separate statement, the FSA accused the former soldier of "disclosing inside information in two emails sent in September and October 2008 to a prospective client." According to the FSA, the emails contained inside information relating to JP Morgan client Heritage Oil.
"The September email contained information about a potential offer for Heritage and the October email contained information about a new oil find by Heritage," it added. The FSA noted that while "Hannam did not set out to commit market abuse ... 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, added: "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."
Source: AFP
