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You are viewing the version of the document as on 2022-09-30.

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    2022-09-30

EG 4.9 1Involvement of FCA supervisors during the investigation phase

EG 4.9.1RP

1A clear division between the conduct of the investigation2 the ongoing supervision of the firm means that clarity as to who is carrying out what work in important, so that the focus on the various needs of the investigation and supervisory function are not lost. It is also important that the investigation can2 benefit2 from the knowledge of the firm or individuals that the supervisors will have built up, or from their general understanding of the firm's business or sector. In most (if not all) cases, assistance from a referring area in informing the investigation team of certain matters2 (e.g. the firm’s business model and market practice issues) will be helpful.2 Following a referral, the FCA takes the following general considerations into account in relation to the potential role of a supervisor in an investigation.

  1. (1)

    While it is clearly essential for the day-to-day supervisory relationship to continue during the course of any enforcement action, this need not, of itself, preclude a firm's supervisor from assisting in an investigation.

  2. (2)

    Such assistance will include: making the case team aware of the firm's business,2 history and compliance track record; the current supervisory approach to the area concerned; current issues with the firm; and acting as a sounding board on questions that emerge from the investigation about industry practices and standards and any market practice issues. Depending on the issues that arise, it may be appropriate for a supervisor to attend a progress meeting with the firm2.

  3. (3)

    Equally, there may be circumstances where someone in the FCA other than the firm’s supervisor can more effectively and efficiently provide information on the current supervisory approach to the area under investigation or current market standards. In this case it makes good sense for the FCA to draw on that other source of expertise.

  4. (4)

    In the event that a firm's supervisor becomes part of the investigation team, the FCA will notify the firm of this in the normal way.

  5. (5)

    2Where a firm’s supervisor does not become part of the investigation team, the investigation will keep the firm’s supervisor (or referring area) updated on the progress of the investigation.