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Status: You are viewing the version of the handbook as on 2016-06-30.

EG 4.9 1Involvement of FCA supervisors during the investigation phase

EG 4.9.1RP

1A clear division between the conduct of the investigation on the one hand and the need to continue with the ongoing supervision of the firm on the other may mean that the investigation does not benefit as much as it might otherwise do 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. Before matters are referred to the Enforcement Division for investigation, FCA staff from its Enforcement Division will often work closely together with staff from the Supervision Division in order to determine the proper course of action to take. 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 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.

  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.