Legal expenses and uninsured loss recovery company Direct Legal Protection (DLP) has stopped accepting new business pending a review of its operations.
In a letter to brokers dated 29 July, Kent-based DLP said it is "reviewing its business operations".
It added that during the review process, DLP "will be unable to accept any further business".
One broker who received the DLP letter said he had also been contacted by the FSA warning of a possible investigation into the company.
An FSA spokesman could not confirm if DLP was under investigation.
The letter from DLP added that the company "hope to be able to provide an enhanced service" once the review is complete.
Executives at DLP were unavailable for comment as Insurance Times went to press.
