LONDON – A former top banker at JPMorgan Chase has lost his appeal of a ruling by British regulators two years ago that he improperly disclosed inside information.
Ian Hannam, JPMorgan’s former global chairman of equity capital markets, left the bank in 2012 after British financial regulators fined him 450,000 pounds ($753,980). He said at the time that he disagreed with the decision and resigned to avoid being a distraction to his colleagues while he pursued and appeal.
On Wednesday, the Financial Conduct Authority said a tribunal in London upheld the ruling by its predecessor agency, the Financial Services Authority, that Mr. Hannam had engaged in two instances of market abuse. The F.S.A. has since been split into two agencies – the F.C.A. and the Prudential Regulation Authority.
“We consider that it could never be in the proper course of a person’s employment for him to disclose inside information to a third party, where he knows that his employer and client would not consent to the public disclosure of that information, unless he knows that the recipient is under a duty of confidentiality and that he knows that the recipient understands that to be the case,” the tribunal found.
In 2012, British financial regulators determined that Mr. Hannam improperly shared information regarding Heritage Oil, a British oil and natural gas exploration company, in two emails sent in 2008 to a prospective client. Mr. Hannam was acting as lead adviser to Heritage at the time.
The F.S.A. didn’t accused Mr. Hannam of deliberately setting out to commit market abuse or claim that he lacked honesty or integrity. But the regulator said it considered his actions serious because of his experience and senior position at JPMorgan.
“I am obviously disappointed that the tribunal has rejected the explanation as to why the two emails sent in the course of advising and assisting my client did not contravene the rules, but I do appreciate the full consideration that has been given to the issues,” Mr. Hannam said in a statement. “I am gratified that the tribunal has accepted that I was indeed acting only in the interests of my client and without any dishonest or ulterior motive.”
The tribunal’s decision can be appealed.
“Launching an appeal is not a decision to be taken lightly and will require careful thought,” Mr. Hannam said.
Mr. Hannam, a former soldier, is known for his expertise in the mining industry.
Since leaving JPMorgan, Mr. Hannam has been involved in a number of ventures, including leading a consortium that acquired German copper fabricator Mansfelder Kupfer und Messing last year and acquiring an interest in CompactGTL, a British gas-to-liquids business, earlier this year.
He also is co-owner of Strand Partners, a British corporate finance advisory business, and is involved with Centar, an Afghanistan mining venture that he co-founded.