Deep Dive: FCA private market review a 'wake-up call' for asset managers

‘Step in the right direction’

The Financial Conduct Authority’s upcoming review into private market valuations will lead to increased scrutiny on firms’ processes for investing in unlisted assets, especially concerning potential conflicts of interest, experts told Investment Week.

The lead UK regulator revealed it was preparing to run a full-scale review into private markets valuations in the latter half of 2023 as part of a joint evaluation with international regulators of the risks the non-bank sector could pose to financial stability. Prashant Gupta, associate director at Acuity Knowledge Partners, said the initiative evidenced "the importance of private markets maintaining robust and transparent internal valuation procedures". Although the full scale of the inquiry has yet to be revealed, Stewart Heggie, commercial director for Scottish Mortgage, said the F...