Hannam has referred the matter to the upper tribunal where both he and the regulator will present their case and the tribunal will subsequently determine the appropriate action for the FSA to take.
Actions available for the Tribunal are to uphold, vary or cancel the FSA’s decision, which is based on its opinion that on two separate occasions Hannam disclosed inside information via emails to a prospective client.
The emails contained information relating to Heritage Oil, an existing JPMorgan client for which Hannam was the lead adviser.
The first email in September 2008 contained information about a potential offer for Heritage Oil and the second, in October 2008, contained information about a new oil find by Heritage.
In its decision notice the FSA said it accepts Hannam did not set out to commit market abuse but it still considers his failing were serious in view of his experience and senior position within JPMorgan.
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."
