What could be a consequence for failing to cooperate with an FCA investigation?

The consequence of failing to cooperate with a Financial Conduct Authority (FCA) investigation can indeed involve severe legal repercussions, including potential imprisonment for up to 2 years and an unlimited fine. The FCA is vested with the authority to enforce compliance with financial regulations, and non-cooperation can be interpreted as obstructing the investigatory process.

Such measures are in place to promote accountability and transparency within the financial sector. The threat of imprisonment serves as a strong deterrent against non-compliance, ensuring that individuals and entities understand the importance of cooperating with regulatory inquiries. Unlimited fines highlight the seriousness of the consequences, emphasizing that financial misconduct will be dealt with stringently.

Other options, while they suggest forms of punishment, do not capture the full extent of the FCA's enforcement capabilities regarding cooperation during investigations. Only the correct answer reflects the seriousness of failing to align with regulatory expectations, which is critical for maintaining the integrity of the financial system.