EG 2.4 1Case selection: Unauthorised business

EG 2.4.1

1Where this poses a significant risk to the consumer protection objective or to the FCA's other regulatory objectives, unauthorised activity will be a matter of serious concern for the FCA. The FCA deals with cases of suspected unauthorised activity in a number of ways and it will not use its investigation powers and/or take enforcement action in every single instance.

EG 2.4.2

1The FCA's primary aim in using its investigation and enforcement powers in the context of suspected unauthorised activities is to protect the interests of consumers. The FCA's priority will be to confirm whether or not a regulated activity has been carried on in the United Kingdom by someone without authorisation or exemption, and, if so, the extent of that activity and whether other related contraventions have occurred. It will seek to assess the risk to consumers' assets and interests arising from the activity as soon as possible.

EG 2.4.3

1The FCA will assess on a case-by-case basis whether to carry out a formal investigation, after considering all the available information. Factors it will take into account include:

  1. (1)

    the elements of the suspected contravention or breach;

  2. (2)

    whether the FCA considers that the persons concerned are willing to co-operate with it;

  3. (3)

    whether obligations of confidentiality inhibit individuals from providing information unless the FCA compels them to do so by using its formal powers;

  4. (4)

    whether the person concerned has offered to undertake or undertaken remedial action.