Being investigated by the Financial Conduct Authority (FCA) can be an unsettling experience. Whether you are a financial services professional, company director, or business owner, an investigation can put your career, reputation, and business at risk.
However, an FCA investigation does not automatically mean that wrongdoing has occurred. The purpose is to establish the facts, assess potential misconduct, and determine whether further action is necessary. Understanding the process and obtaining advice from an experienced fraud defence solicitor can help you protect your position from the outset.
Why might the FCA investigate you?
The FCA regulates financial services firms and individuals in the UK. It may investigate suspected breaches of regulatory requirements or potential criminal offences.
Investigations can involve allegations of insider dealing, market abuse, misleading financial promotions, financial misconduct, mishandling client money, or operating without the necessary authorisation.
The FCA considers the circumstances of each case when deciding whether an investigation is appropriate. Being investigated is not proof of guilt, but it is important to take any contact from the regulator seriously and contact a trained defence solicitor for advice as soon as possible.
What happens during an FCA investigation?
The process will depend on the nature and complexity of the allegations, but it may involve several stages.
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Initial notification and enquiries
You may be informed that you or your business is under investigation, although the circumstances and timing of notification can vary. The FCA will seek to establish the relevant facts and identify potential regulatory breaches or offences.
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Requests for information and documents
The FCA has extensive statutory powers to require individuals and businesses to provide information and documents relevant to an investigation. Investigators may examine financial records, business communications, transactions and internal procedures.
Failure to comply with a lawful requirement can have serious consequences. However, there may be important questions about the scope of the request, the information that must be disclosed and whether any documents are protected by legal professional privilege.
Seeking specialist legal advice before responding can help ensure that you comply with your legal obligations while protecting your position.
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Interviews
The FCA may ask you to attend an interview voluntarily or require you to attend and answer questions using its statutory powers.
There is an important distinction between a compulsory interview and a voluntary interview under caution.
During a compulsory interview, you may be legally required to answer questions. However, there are restrictions on how those answers can subsequently be used against you in criminal proceedings.
If you are suspected of committing a criminal offence, the FCA may instead interview you voluntarily under caution. You are not obliged to answer questions, although remaining silent can have adverse consequences if you were to be prosecuted. Answers you choose to give may be used as evidence against you.
It is important to understand which type of interview you are being asked to attend and what your rights and obligations are. Obtaining advice from an experienced criminal defence solicitor before attending an FCA interview is strongly recommended.
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Regulatory or criminal action
Once the investigation is complete, the FCA may decide to take no further action or pursue regulatory or criminal proceedings.
Depending on the circumstances, possible outcomes include financial penalties, public censures, restrictions on regulated activities, prohibition orders or criminal prosecution.
Some cases may be resolved through an agreed regulatory settlement, while others may result in contested proceedings. Regulatory and criminal investigations may also run alongside one another.
There is no fixed timetable for an FCA investigation. Complex cases involving multiple individuals, substantial financial records or suspected fraud can take considerable time to resolve.
Why do you need a fraud defence solicitor?
Seeking legal advice at an early stage can make a significant difference to how you approach an FCA investigation. A specialist fraud defence solicitor can explain your rights and obligations, advise on responding to information requests and prepare you for interviews.
They can also review the evidence, identify potential weaknesses in the allegations, and help you understand the risks of regulatory action or criminal prosecution. Where appropriate, your defence solicitor can make representations on your behalf and develop a strategy to protect your professional interests.
Early legal advice is particularly important where an investigation could affect your regulatory status, ability to work in financial services, business operations or personal finances.
How Burton Copeland can help
At Burton Copeland, our specialist fraud defence solicitors in Manchester have extensive experience representing individuals and businesses facing complex financial crime investigations.
We advise clients involved in FCA investigations and a wide range of corporate crime matters, including banking fraud, insider trading, money laundering, and Serious Fraud Office investigations.
Our team provides tailored advice throughout the investigation, helping you understand the process, prepare for questioning and build a robust defence. We recognise the pressure these cases can place on your personal and professional life and provide clear, practical guidance at every stage.
Facing an FCA investigation?
Contact Burton Copeland for specialist fraud defence advice and support.