You'd be suprised
We are quite strict in this country over requirements to jump camera. In america the approch is more scatter guns, with some Dropzones wanting a minimum no. of jumps some dont care... Anyway thats besides the point.
I dont understand why the FAA would care whether its in his hands or not. In the US this isnt an issue.
My guess is he had it in his pocket and forgot to zip it up - either within his jump suit or not.
Skydivers don't wear airproof suits so the "drafts" of air can get into your pockets and work things out (also the decelartion from 120mph* odd -> 20mph*)
So in summary:
- Yes he can jump with objects in his hands
- Yes he could have had it in his pocket and worked out
- Some skydivers do jump in jumpsuits, although its a bit nicer this time of year to wear shorts and t-shirts.
*120mph figure is approximate and may vary due to the fatness of ones arse.. the 20mph depends on the size of canopy..