Impact of the Hannam market abuse case

By Bradley Rice

On 27 May 2014, the Upper Tribunal handed down its eagerly awaited judgment in the Ian Hannam market abuse case. For those familiar with the case, this article summarises some practical consequences from the judgment below. It then briefly summarises the now well-known facts of the case and looks in more detail at some of the key points of the judgment.

We have been conducting numerous refresher training sessions since the Hannam decision notice, which many have found helpful. Please contact us if you think this would also be helpful for your firm.

(Explicit) confidentiality is king. Mr Hannam did not ensure the recipient of inside information (Dr Hawrami) was aware that it was confidential and price sensitive. He thought Dr Hawrami would have known, but the Upper Tribunal concluded this was not enough. Best practice is to obtain prior permission before bringing someone inside. The Upper Tribunal was explicit that persons in possession of (even potential) inside information should think carefully before disclosing it. The Financial Conduct Authority said Mr Hannam made a ‘serious error of judgment’ — others do not want to fall into the same trap…

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