‘King of Mining’ Hannam loses market abuse appeal
Jim Armitage is the City editor of The Independent and London Evening Standard group of newspapers. He has been a reporter and editor for more than 20 years and was recently shortlisted for the Press Gazette financial journalist of the year and The Society of Editors financial journalist of the year awards. He contributes news, investigative reports and comment to the Independent titles plus a daily column in the Evening Standard.
Deputy Business Editor
Wednesday 28 May 2014
A City tribunal has decreed that Ian Hannam, one of the leading investment bankers of his generation, did commit market abuse in two instances, upholding a ruling by the City watchdog, the Financial Conduct Authority.
The former chairman of capital markets at JPMorgan had been fighting to clear his name after the regulator fined him £450,000 for disclosing to a client inside information about a potential takeover of an oil and gas company called Heritage. At the time, JPMorgan was acting for Heritage.
At issue were two emails to Ashti Hawrami, the Kurdish natural resources minister, one of which disclosed that Heritage was at the receiving end of a takeover bid, and another saying it had “just found oil”.
Mr Hannam, known in the City as the King of Mining, appealed against the ruling but the upper tribunal upheld the decision.
The deal maker described himself as “loyal and British” to The Independent before referring inquiries to a statement which said he was “obviously disappointed” at the decision and would give “careful thought” to whether he would make a further appeal.
The tribunal also upheld the £450,000 penalty and said: “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.”
Mr Hannam said he had pursued the case because he felt that the market abuse rules were unclear. The fact that the judgment was lengthy and detailed showed that his view was reasonable, he said.
Mr Hannam has advised on some of the biggest takeover deals of the past two decades, particularly in the mining and natural resources industries, and has continued working since the fine, advising on Glencore’s takeover of Xstrata among other deals.
He is co-owner of Strand Partners, an FCA-registered advisory business, and he has continued his involvement with Centar, a mining venture in Afghanistan which he co-founded while at JP Morgan.
He has received widespread support from City friends and contacts, including the former Xstrata boss Mick Davis, Aberdeen Asset Management chief Martin Gilbert and former Conservative leadership candidate David Davis.
- 1 The difference between a migrant and refugee, in one sentence
- 2 Miley Cyrus calls out hypocrisy of women’s nipples being taboo
- 3 Celebrity Big Brother 2015: Tila Tequila kicked off show after 'describing Hitler as a good man'
- 4 iPhone 5c to be discontinued, no iPhone 6c to replace it
The difference between a migrant and refugee, in one sentence
Spain accused of 'provocation' after letting Russian submarine refuel off Gibraltar
Allonautilus scrobiculatus: World's 'rarest' creature spotted for only the third time ever
Miley Cyrus calls out hypocrisy of women’s nipples being taboo
Celebrity Big Brother 2015: Tila Tequila kicked off show after 'describing Hitler as a good man'
Climate change: 2015 will be the hottest year on record 'by a mile', experts say
Labour leadership: Jeremy Corbyn accused of 'deluding' young supporters with 'claptrap'
'Women only' train carriages: Jeremy Corbyn unveils radical move to tackle public harassment
Black holes are a passage to another universe, says Stephen Hawking
Iain Duncan Smith 'should resign over disability benefit death figures', says Jeremy Corbyn
Iain Duncan Smith calls for urgent ESA overhaul as part of drive to cut down welfare costs
iJobs Money & Business
£25000 - £30000 per annum: Recruitment Genius: From modest beginnings the comp...
£35000 - £40000 per annum: Recruitment Genius: From modest beginnings the comp...
£15000 - £65000 per annum: Recruitment Genius: This is an exciting opportunity...
£18000 - £20000 per annum: Recruitment Genius: This is a fantastic opportunity...