What does non-compliance typically result in for financial firms under FCA regulations?

Non-compliance with FCA regulations often leads to serious repercussions for financial firms, primarily investigations and fines. The FCA is responsible for maintaining the integrity of the UK's financial markets and ensuring that firms conduct their business in a way that is fair, transparent, and in the best interests of consumers. When a firm falls short of these regulatory requirements, the FCA may initiate an investigation to assess the extent of the non-compliance.

If the investigation substantiates the non-compliance, the FCA can impose significant financial penalties on the offending firm. These fines serve as a deterrent to both the specific firm and the broader industry. Moreover, the reputational damage that often accompanies such investigations can be severe, leading to further business challenges.

In contrast, the other options suggested do not align with the typical outcomes of non-compliance. For instance, increased business opportunities and positive publicity are generally the result of compliance and ethical practices, not non-compliance. Similarly, while warnings can be issued for less severe infractions, serious breaches typically escalate to investigations and fines without merely stopping at a warning. Thus, the correct answer highlights the grave consequences that come from failing to adhere to FCA regulations, underscoring the importance of compliance within the financial sector.