Tesco to be probed by Financial Conduct Authority

Tesco says that it has been notified by the Financial Conduct Authority (FCA) that it is under investigation following its admission last week that it overstated its half-year profit guidance by £250m.

The supermarket has said that it would continue to co-operate fully with the FCA and other relevant authorities.

Tesco has already launched its own investigation which is being carried out by Deloitte, and Freshfields, who are the group’s external legal advisers.

The Financial Reporting Council (FRC) said that it was “monitoring the situation closely” but would not take any action until Tesco’s own investigation was completed.

The FRC can issue fines for misconduct and can also, via an independent panel, suspend individuals and firms from the professional accounting body.