Regulatory ·
FCA review finds private-market firms vary in how well they manage conflicts of interest
The FCA's review across private equity, private credit and real estate found examples of good practice but said some firms failed to identify conflicts adequately or keep controls up to date, with recurring weaknesses 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 and show investors are treated fairly. Separately, it is examining governance and conflicts concerns in private credit funding of consumer litigation claims.
Why it matters for deal teams: Cross-fund transfers and continuation-style trades are named weak spots, so UK managers can expect more questions on how those conflicts are documented and evidenced.
Source: FCA press release ↗