The Financial Conduct Authority (FCA) has dropped its investigation into troubled insurance outsourcer Quindell with immediate effect, making way for the criminal investigation being carried out by the Serious Fraud Office (SFO).
"Quindell announces that it has been informed by the FCA that, in light of the investigation by the SFO into past business and accounting practices at the company, the FCA has decided to discontinue its own investigation with immediate effect," the company said in a statement today.
Read more: Quindell names new boss to unravel mess
Quindell has had a challenging 18 months since it was first targeted by US short-seller Gotham City Research in early 2014. Quindell's share price plummeted, wiping more than £1bn from its value.
Although Quindell later won a libel case against the group, its troubles continued throughout the year and by the end of 2014, chairman and founder Rob Terry had resigned, as had its broker, Canaccord Genuity, while investor Fidelity halved its stake.
Since then Quindell has sold its professional services division, which accounted for 90 per cent of its business, to Slater & Gordon. Following a revision of accounting policies, Quindell revealed a post-tax loss of £350m for 2014 earlier this month.
The company appointed a new chief executive Indro Mukerjee yesterday, two months after the departure of Robert Fielding.