Q JP Morgan Cazenove banker Ian Hannam has decided to appeal the FSA’s decision. What happens now?
A The case will progress to an independent tribunal outside the FSA’s jurisdiction. It will take around a year for the trial to be convened, during which time lawyers on both sides will compile their cases. After that it could take up to six months for the trial to reach a conclusion.
Q What is the likelihood Hannam could be cleared?
A It is unlikely he would appeal if lawyers had advised that he has no chance, but statistically, just ten per cent of appeals succeed.
Q But if he is cleared, it’s all back to normal, right?
A This is a point of controversy. In theory, yes, but critics of the FSA progress argue that new rules mean a banker’s reputation can be ruined even if they are eventually cleared. At issue is its publication of the “decision notice” – its decision to fine Hannam. Before 2010, this would not have been published until any appeal had reached its conclusion, but due to a transparency push, the notice is now published once the FSA has reached its decision.
Q Did Hannam have to quit his banking job?
A In theory, no. But lawyers say mounting a tribunal appeal is incompatible with a full-time job – and costs hundreds of thousands of pounds.