When the FCA comes knocking, firms need to weigh their stance carefully. Depending on the underlying issue at stake, the FCA will expect proper engagement from senior management and evidence that they are taking the matter seriously. Further, the FCA has wide-ranging and draconian powers.
If firms do not play it right, they could, at best, find that their resources are interminably tied up in dealing with the FCA and, at worst, that they face substantial fines or even immediate action to stop them carrying out new business.