What actions can the FCA take if an authorised insurance broker does not meet regulatory expectations?

The correct response highlights the serious regulatory actions the Financial Conduct Authority (FCA) can take in situations where an authorised insurance broker fails to meet set expectations. Specifically, the FCA has the authority to withdraw an insurance broker's authorisation, effectively preventing that broker from operating in the market if they are found to be non-compliant with necessary standards. This measure is crucial for maintaining consumer protection and market integrity.

Imposing penalties, such as fines, is also within the FCA's remit. Such penalties serve to discourage misconduct and encourage brokers to adhere to compliance standards, thereby upholding the trust and functionality of the insurance market. This dual approach of withdrawing authorisation along with the possibility of penalties underscores the FCA's commitment to enforcing regulatory compliance rigorously.

Other options such as providing additional funding or offering training programs are not standard regulatory actions taken by the FCA. While these might be beneficial in assisting brokers to improve their practices, they do not fall within the direct spectrum of regulatory enforcement actions that the FCA can undertake in response to non-compliance. Thus, the chosen answer accurately reflects the FCA's powers and responsibilities in regulating insurance brokers.