Reed Smith's Romin Dabir: Firms should act now to get ahead of the FCA's private market valuations review

Lead to demands for more clarity

Valuations play a crucial role in maintaining confidence in the market - forming the basis of investor confidence in and assessment of potential investments, as well as providing information for investors to track the performance of their investments. Confidence in the robustness of valuations provided is therefore vital.

Given the importance of valuations, recent regulatory attention to this area is unsurprising, particularly against a backdrop of increased volatility: the International Organization of Securities Commissions (IOSCO) has identified valuations as a key risk area for the financial sector. Deep Dive: FCA private market review a 'wake-up call' for asset managers Following on from this, the FCA has announced that it will be conducting a review into firms' approaches to valuation, with changes to the regulatory framework expected to follow. To ensure that they are well placed to respond t...