Which action can the FCA NOT take under its powers according to FSMA 2000?

The Financial Conduct Authority (FCA) operates under the regulatory framework established by the Financial Services and Markets Act (FSMA) 2000, which grants it specific powers to oversee financial firms. One critical aspect of the FCA's authority is the necessity for grounds or justification to initiate investigations into firms, which is encapsulated in the concept of "cause."

The FCA cannot investigate firms without any cause, as this would violate principles of due process and accountability in regulatory practices. The regulatory framework requires that the FCA must have reasonable grounds or a specific basis to conduct an investigation, ensuring that firms are not subjected to unwarranted scrutiny without valid reasons or evidence of misconduct. This protects firms from being burdened by illegitimate investigations and promotes the integrity of the regulatory process.

On the other hand, the powers the FCA does possess include the ability to conduct interviews with employees, enter premises without notice in certain situations, and gather information within a reasonable time frame, reflecting the FCA's role in ensuring compliance and enforcing regulations in a proactive manner.