The Financial Conduct Authority (FCA) has initiated an enforcement investigation into Market Financial Solutions Limited (MFS). MFS is registered as an Annex 1 business, meaning its supervision by the FCA is limited solely to its compliance with the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017. Notably, Annex 1 firms are not subject to the FCA's broader regulatory oversight. The investigation commenced shortly after MFS entered administration on February 25, 2026.

This action signals heightened scrutiny by the FCA regarding AML compliance, particularly for firms operating under the limited Annex 1 registration. While MFS is in administration, the FCA's investigation will likely focus on the period leading up to its insolvency and any potential breaches of the Money Laundering Regulations. Compliance officers at similar Annex 1 registered firms should review their AML policies and procedures to ensure robust adherence to the 2017 regulations and be prepared for potential inquiries or increased supervisory attention.