The Financial Conduct Authority has published a speech by deputy chief executive Sarah Pritchard setting out how it expects confidence in UK private markets to be maintained as the sector grows. In the speech, delivered at the Investment Association's Private Markets Summit, she said confidence depends on strong first-line controls at firms, proportionate regulation and more connected oversight, and flagged upcoming reform of the alternative investment fund manager regime. The Treasury is expected to consult later this year on changes to those rules, with the FCA planning parallel proposals that would reduce obligations on smaller funds while requiring more from larger ones according to their size and market impact. The speech frames conduct risks alongside financial stability risks as a core supervisory focus. The FCA said it is supporting the Bank of England's system-wide exploratory scenario on private market risks, expects firms to show how they have embedded the governance and good practice set out in its March 2025 valuations report, and is continuing a multi-firm review of conflicts of interest. That review has already gathered information on how firms identify conflicts and design their frameworks, and will now assess how those arrangements operate in practice. Findings from the conflicts review are due later this year. Pritchard also pointed to ongoing work with IOSCO and the Financial Stability Board on private market risks, leverage and more consistent terminology, and urged firms to engage with the FCA before domestic reform proposals are fixed.
Financial Conduct Authority 2026-05-11
Financial Conduct Authority outlines more proportionate alternative investment fund manager rules and private markets oversight priorities
The Financial Conduct Authority published a speech by deputy chief executive Sarah Pritchard outlining expectations for maintaining confidence in growing UK private markets, including strong first-line controls, proportionate regulation and more connected oversight, alongside forthcoming reforms to the alternative investment fund manager regime. The FCA plans parallel proposals to the Treasury’s consultation that would ease obligations for smaller funds and increase requirements for larger ones, and highlighted its focus on conduct and financial stability risks, including a multi-firm review of conflicts of interest and work with the Bank of England on private market risks.