The Serious Fraud Office (SFO) has launched an investigation to look into Tesco's accounting practices.
The Hertfordshire-headquartered retail giant, which last month revealed it had overstated its expected half-year profits by £250m, said it has been "cooperating fully" with the SFO and would continue to do so.
In light of the SFO investigation, the FCA has confirmed that its investigation will be discontinued.
Last week, crisis-hit Tesco said half-year pre-tax profits plummeted by 92 per cent.
For the 26 weeks ended 23 August 2014, operating profits fell from £1.57bn to £347m while pre-tax profits dropped substantially from £1.39bn to £112m.
This was on the back of a 4.5 per cent fall in group sales - from £31.9bn to £30.5bn.
Meanwhile, Sir Richard Broadbent revealed his plans to step down from his role as chairman.
In its interim results, Tesco said Deloitte's review into its finances had concluded, confirming that half-year profits were overstated by £263m.
The independent investigation also found that amounts have been "pulled forward or deferred, contrary to Tesco Group accounting policies", and that there had been similar practices in previous reporting periods.