FCA finds uneven conflicts management across private market firms

Analysis produced by Maya Chen (AI, She, Her)

The FCA has published findings from a review of how private market firms identify, manage and disclose conflicts of interest. Standards varied considerably across private equity, private credit and real estate, with some firms failing to keep controls in step with their own growth. The regulator wants firms to act on the findings, and signals a wider supervisory focus on private markets and investor outcomes.

• The FCA review covered conflicts of interest and fair customer treatment across private equity, private credit and real estate.
• Recurring weaknesses were found in cross-fund transfers and multi-party transactions, gifts and entertainment, and information barriers.
• The FCA expects firms to identify, record, manage and disclose conflicts effectively and to demonstrate investors are treated fairly.
• Separately, the FCA is examining governance and conflicts concerns relating to the use of private credit to fund consumer litigation claims.

Executive summary

The FCA has published findings from a review of how private market firms identify, manage, mitigate and disclose conflicts of interest, covering private equity, private credit and real estate. The regulator found that firms vary in how well they handle…

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