The Financial Conduct Authority has closed its investigation into Drax Group, finding no evidence to justify further action.
The investigation examined whether Drax's annual reports and accounts for 2021, 2022 and 2023 contained misleading statements or omitted information investors needed to know, focusing specifically on disclosures relating to the sustainability of the company's Canadian biomass supply.
The FCA said it reviewed thousands of pages of material and interviewed individuals from the company as part of the probe.
The investigation was opened on 28 August 2025 following enquiries made after Ofgem's August 2024 findings on Drax's reporting of biomass profiling data.
The FCA noted that Drax, as a listed company rather than a regulated financial services firm, is subject to specific disclosure rules rather than the full body of FCA regulation.
"Accurate reporting is crucial to the integrity of our markets, and vital so investors can make informed decisions," the regulator said, adding that it takes proportionate action where evidence supports it and closes cases swiftly where it does not.
