An investigation into a Greater Manchester-headquartered national car retail giant has been dropped by the Financial Conduct Authority (FCA) - although concerns have been raised.
The FCA, which first announced its investigation into Lookers plc in June 2019, had been looking into the listed company's sales processes between January 1, 2016, and June 13, 2019.
However, the watchdog has now advised the board of its decision to close the investigation against Lookers Motor Group, the group's FCA regulated entity, for the possible mis-selling of regulated products, and associated issues relating to potential customer detriment during the period.
A Lookers statement said: "In closing the case, the FCA further advised the board that it does not intend to use its statutory powers to apply any sanction against the group in relation to the matters under investigation.
"However, the FCA made its concerns clear relating to the historic culture, systems and controls of the group.
"The board fully accepts the FCA's comments and is committed to continue the progress made to date in transforming both culture and the customer experience.
"The group continues to have an open and cooperative relationship with the FCA Supervisory team.
"Having already invested in a major remediation plan, including new systems, controls and process improvements, the board remains fully committed to the group's ongoing investment programme, driving the creation of the right culture, working towards an industry leading customer experience."
Altrincham-headquartered Lookers is now set to release the provision of £10.4m which was made in relation to any potential liabilities arising from the investigation.
Chief executive Mark Raban said: "It is an important time for Lookers as we emerge from a difficult period dealing with both the challenges of our legacy issues and Covid.
"We are pleased that the FCA has decided to close its investigation and we can now look forward and continue to build our business for the benefit of our customers and other stakeholders."
The FCA announcement comes after Lookers revealed its results for the six months to June 30, 2020, at the start of this year which showed its revenue dropping 40% to £1.5bn and its making a pre-tax loss of £50m compared to profits of almost £20m during the same period in 2019.
Lookers also appointed Duncan McPhee as its new chief operating officer at the end of January and Anna Bielby as its interim chief financial officer at the start of the year.
