Category: Compliance & AML · Reviewed by Matt Bartlett, Director · Founder · Last reviewed June 2026
A formal investigation conducted by the FCA’s Enforcement and Market Oversight Division under FSMA sections 167 and 168, gathering evidence to determine whether to take disciplinary action against a firm or individual.
An FCA enforcement investigation is a formal evidence-gathering exercise under the FCA’s statutory powers, ordinarily initiated when the FCA suspects a breach of regulatory requirements that may warrant disciplinary action. Investigations may be focused on a firm, on an individual, or both, and may run in parallel with criminal proceedings or other regulator actions.
FSMA section 167 (general appointment of investigators) and section 168 (appointment of investigators in particular cases). Investigators have compelled-evidence powers under FSMA section 171 (interviews) and section 172 (entry of premises). The Enforcement Guide (EG) describes the FCA’s approach in detail.
Investigations typically open with a Memorandum of Appointment of Investigators served on the subject. The investigation team gathers evidence — documentary requests, interviews (which may be compelled under section 171), market data, witness statements. Subjects of investigation engage their own counsel. The investigation phase may last months or years. At its conclusion the FCA may close with no action, settle (with DEPP stage discounts), issue a warning notice and proceed to the RDC, or refer to the Crown Prosecution Service / SFO for criminal proceedings.
The “Section 168(1) referral” relates to insider dealing, market abuse and prescribed financial crime offences. Settlements can be agreed at various stages, with discount of up to 30% available for stage-1 settlement. The DEPP framework governs the procedural fairness of decision-making.
A firm subject to investigation for Consumer Duty fair-value failings would face documentary requests, senior manager interviews, customer file sampling and underlying MI review. The firm’s compliance team supports the investigation through coordinated production, with legal counsel managing privilege and section 348 confidentiality.
Financial Services and Markets Act 2000, sections 167, 168, 171, 172, 348. FCA Handbook, Enforcement Guide (EG) and Decision Procedure and Penalties manual (DEPP).
By Matt Bartlett, Director, on 2026-06-11.
This entry is part of the Apex Insurance Wiki. Last reviewed by Matt Bartlett on 2026-06-11. Apex Insurance Brokers Limited, FCA FRN 724952, Companies House 07014570. Not regulated advice — consult your broker on your specific position.
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