Market Abuse: Improper Disclosure

In the recent Upper Tribunal case of Ian Hannam v FCA, it was found that Mr Hannam, then Global Co-Head of UK Capital Markets at JP Morgan Cazenove, engaged in market abuse by disclosing inside information other than in the proper course of the exercise of his employment within the meaning of section 118(3) FSMA. The Tribunal came to the following conclusions as to the meaning of inside information:

• a statement or communication need not be wholly accurate to be inside information, provided it indicates circumstances or events which actually exist or have occurred or could reasonably be expected to occur;
• where a statement indicates existing or past events, the FCA must prove they exist or have occurred. Where it indicates future events, the FCA must prove there is a realistic prospect that will occur;