The tribunal hearing brought forward by former JP Morgan Cazenove chairman of capital markets Ian Hannam, following his Financial Services Authority (FSA) fine and ruling last year, has begun today.
Hannam is appealing the former regulator's accusation that he committed market abuse and the £450,000 fine he received.
The case, in which both he and the regulator will present their arguments, has begun today at the Royal Courts of Justice's Rolls Building.
Hannam said in a statement published by the Wall Street Journal ahead of today's tribunal: "I do not believe that I broke the rules on inside information. On the contrary, I was acting in the proper course of my employment as a corporate financier, pursuing a transaction on behalf of my client, Heritage Oil & Gas. But that is ultimately for the Tribunal to decide."
In February last year the FSA issued a decision notice which said Hannam had disclosed inside information in two emails sent in September and October 2008 to a prospective client.
The emails contained information relating to Heritage Oil Plc, an existing JP Morgan client for which Hannam was the lead adviser.
The September email contained information about a potential offer for Heritage, while the October email contained information about a new oil find by Heritage.
The FSA accepted that Hannam did not deliberately commit market abuse but said his failings were serious in the light of his experience and senior position within JP Morgan.
It also said the size of the proposed fine reflected the serious nature of the market abuse and should act as a deterrent to other market participants.
Hannam resigned from JP Morgan in April last year, saying he wanted to avoid distracting his colleagues while he was appealing the FSA's decision.
Since leaving JP Morgan, Hannam's private company Elgin Partners took control of small and mid-cap adviser Strand Partners, and in April this year the 57 year-old officially joined the firm, according to the Wall Street Journal.
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