The Financial Conduct Authority (FCA) will launch an audit programme on Thursday to review the sector, following the Brexit vote. 

It comes after a series of scandals over alleged misconduct in the sector.

The regulator will be launching the programme as part of a three-month pilot scheme, which it hopes will become a model for other financial services companies to follow.

The FSA will be looking for evidence that a company has failed to report breaches to the regulator. 

A range of actions are possible, including issuing a caution to the company, suspending its licence, or cancelling its licence altogether. 

“We have a long way to go to get a regulatory regime that is fair, open and transparent and that is not influenced by the big banks and big multinationals,” said the FSA’s chairman, Mark Hoban, in a speech at the London Financial Services Forum.

“This audit will help us make those reforms, which will lead to the future of the sector.”

The FSA is looking for any evidence of the following: “A failure to report fraud or unlawful activity to the financial regulator; “Compliance with the rules and regulations of the Financial Conduct Act; “(Failure to report any breaches to an authorised body, including the FSA, if the breach is significant enough to warrant a caution);”A company failing to comply with its obligations under the FSA and its code of conduct; (Failure to respond to the FSA within a reasonable period of time, and in the way required by the FSA) “Fraud or other misconduct”The FSA says it will look at the “potential costs of compliance” and the “impact on the sector”, as well as any “possible risks” to the sector from the regulator’s audit.

“We are determined to take a tough line in dealing with the financial sector in this critical time,” Hoban said.

“The future of financial services is at stake.

And it will depend on the outcome of this audit.”

The regulator is expected to publish a report in March, but Hoban did not confirm whether the regulator will use that as a starting point for an independent audit.

The government has committed to a “robust” regulatory system that includes a national insurance scheme, and will also introduce a financial services regulator, which would take over the role of the FSA.