The UK FCA published the findings of a multi-firm review of managers of private market funds, such as private equity and private credit, focused on how they handle conflicts of interest. The regulator recognises good practice but asks firms to strengthen their controls as the sector grows quickly. The weak spots it found concern continuation vehicles and transfers of assets between funds of the same manager, gifts and hospitality, and information barriers between teams.

What it means: Private markets have become one of the largest and fastest-growing parts of asset management, and supervisors are paying them more and more attention. Conflicts of interest arise mainly when a manager sells an asset from one of its own funds to another, as happens with continuation vehicles, because the price is effectively set by the manager and affects different investors with opposing interests. For Greece the topic matters directly, as Greek occupational pension funds, insurers and family offices invest increasingly in private market funds, and Greek managers run venture and growth capital funds. In the EU, the revised AIFMD directive, due to be transposed by April 2026, added specific rules for loan-originating funds and strengthened transparency requirements. Investors can use the FCA findings as a list of questions for managers: how an asset moved between funds is valued, whether there is an independent opinion on the price, what the policy on gifts is and how confidential information is protected. The Hellenic Capital Market Commission is the competent authority for fund managers in Greece.

Read the original on Financial Conduct Authority

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