Ian Hannam has resigned as chairman of capital markets at JPMorgan Cazenove after financial services watchdog, the FSA, found him guilty of leaking inside information and slapped him with a fine of £450,000.

Mr. Hannam, one of the City's well-known deal makers, had been acting as a key adviser to explorer Heritage Oil and its CEO Tony Buckingham since the year of 2007. The oil company had interests in Kurdistan.

The watchdog said Mr. Hannam had sent emails to two potential clients in Kurdistan revealing information about a potential bid for his client Heritage Oil. Later, he disclosed information about a new oil find by the firm. The regulator underlined that the inside information must not have been disclosed.

Tracey McDermott, acting director of enforcement & financial crime at the FSA, said that being a senior and experienced banker, Mr. Hannam must take his failing seriously.

Speaking on the topic, McDermott added, "Inside information is extremely valuable and must be handled with care to ensure it is properly controlled and appropriate safeguards are observed."

Mr. Hannam is currently acting as an adviser to Xstrata on its £56 billion merger deal with Glencore. He will quit once the merger deal is completed in summer.

Mr. Hannam also confirmed that he would appeal the watchdog's ruling.