UK FCA Calls for Stronger Conflict-of-Interest Controls in Private Markets

The UK’s Financial Conduct Authority (FCA) has urged private market firms to strengthen their identification and management of conflicts of interest as the sector expands and business models become more complex.

A review of private equity, private credit and real estate firms found significant variations in governance and oversight standards. While some firms demonstrated strong controls, others failed to identify conflicts adequately or keep their safeguards up to date.

The FCA expects firms to identify, record, manage and disclose conflicts effectively and demonstrate that investors are treated fairly, particularly where they rely heavily on firms’ judgement, governance and internal controls.