FCA's Rathi calls on private equity to be 'proactive' in sharing information to gauge potential risks

Rules out regulatory crackdown for now

Financial Conduct Authority CEO Nikhil Rathi has called on private equity firms to be “proactive” in sharing information to measure the potential risks posed by the sector, but ruled out an immediate “regulatory cudgel”.

During a speech at the Association of Corporate Treasurers' annual conference on Tuesday (21 May), he said the regulator would like to see more evidence before declaring a systemic issue in the private finance sector. "What we need is better information so we can properly appraise the risks. We should not unjustifiably restrict an important source of financing to businesses of all types," he said.  FCA and Bank of England clash over systemic threat posed by private equity In October last year, the FCA said it would be launching a review into the valuation practices for private asse...