Jabre wins first round in FSA fight

Philippe Jabre, a London hedge fund manager appealing against a 750,000 (€1.1m) fine from the Financial Services Authority, has won the right to a preliminary legal hearing on his case.

The Financial Services and Markets Tribunal agreed to schedule a one-day pre-trial hearing on two issues, next month, according to a source close to the case.

In a presentation to the tribunal yesterday, Jabre's lawyers said the FSA had improperly reintroduced accusations that Jabre was not fit and proper to work in the UK's financial markets.

The accusations were incorporated in the FSA's legal response to Jabre's appeal. The lawyers argued this was improper, since the FSA had previously dismissed this charge before fining Jabre, in March. The FSA also fined GLG, Jabre's then employer, 750,000 for failing to supervise him adequately, a fine GLG has accepted.

Jabre's lawyers also argued the FSA had no jurisdiction over trading that happened outside Europe. Jabre's fine involved his trading in Sumitomo Mitsui, a Japanese bank.

The FSA argued in legal documents presented to the tribunal that there were "no sensible grounds for holding a preliminary hearing. Such a hearing would delay resolution of the substantive issues."

The tribunal decided to schedule a one-day hearing on the case next month.

Jabre and the FSA declined to comment.