FCA private markets review raises valuation concerns

As exposure to private assets grows

Private markets firms need to better manage the process they use to value assets, according to a review of the sector by the Financial Conduct Authority.

Several private markets pricing areas faced criticism from the regulator, and calls for improvements, particularly amid growing retail investor exposure to private assets. Better identification and documentation of potential conflicts of interest in the valuation process is needed, the FCA said. FCA launches multi-firm review targets private asset managers conflict of interests The watchdog added there needs to be increased independence within firms' own valuation processes. Some firms need to enhance processes for ad hoc valuations in times of market disruption, it explained. T...