Hannam to leave JP Morgan after FSA market abuse fine

JP Morgan Cazenove chairman of capital markets Ian Hannam is leaving the bank after being hit with a £450,000 FSA fine for market abuse.

Hannam, a star banker who has been at the firm for 20 years, was fined after allegedly disclosing inside information to a prospective client in 2008. He is appealing against the decision.

The FSA case was based on two emails and was in relation to Heritage Oil, an existing JP Morgan client for which Hannam was the lead adviser.

JP Morgan said in a statement: "After 20 years with the firm, Ian Hannam has decided to resign. He will complete his current client commitments, ensuring a smooth transition of responsibilities.

"Ian has held various roles during his career, most recently as global chairman of Equity Capital Markets. He has acted as a senior advisor on many significant transactions and is especially well-known for his work in the natural resources industry."

Hannam maintained he has done nothing wrong and will be taking the case to a tribubal.

He said in statement: ""I am appealing a decision notice issued by the FSA today and have consequently decided to resign from JP Morgan. 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.

"I have fully cooperated with the FSA from the start. It is important to note that the FSA has not challenged my fit and proper status and has accepted that I acted with honesty and integrity. It has also accepted that I was acting in the best interests of my client and no one benefited or was damaged. I strongly believe, and have been advised by my legal counsel, that the FSA's conclusions are wrong and I look forward to challenging them in an independent tribunal."

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."