FSA confirms Shell probe

In a statement, the FSA said it was 'formally investigating various issues surrounding recent announcements' made Shell.

The FSA said it had been gathering and analysing documentary evidence, and has been in close contact with the relevant overseas regulators throughout. The Securities & Exchange Commission is believed to be investigating how oil companies account for their reserves in the wake of the Shell crisis.

Under its enhanced powers, the FSA has the power to prosecute companies that release misleading statements and practices.

Since the crisis hit Shell earlier this year, it has been revealed that senior officials admitted to misleading investors about the level of oil reserves as far back as two years ago.

Shell has been notified of the investigation an the FSA says it will not comment further until this work reaches a conclusion.