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The UK Financial Supervision Authority plans to investigate whether there is conflict of interests in private stock managers and private credit funds, highlighting one of the fastest growing activities in London.

The Financial Conduct Authority said in message For heads of asset management companies that were concerned, investors can suffer from “inconsistent interests” among private asset managers.

“This year, we will start a multi -corporate review focusing on conflicting interests in companies that manage private assets,” the organizer said. He added: “Conflicts may increase as companies work on many cross -business lines, continuity funds, joint investment opportunities, or partner with other financial institutions.”

Rapid growth in private stocks and credit boxes in recent years I attracted Many of the largest assets and bank managers to expand in the region through acquisitions, partnerships and strategic transformations, because they seek to earn higher fees than they do in stock funds or bonds.

With the growth of the private assets sector, it was generated more complicated, including joint investment by strategic investors, partnerships with banks or asset managers and continuing funds to pass assets from a group of investors to another.

There were also fears that given that private assets are not trading daily on public markets, there are greater potential for fund managers to evaluate them in a way that benefits them at the expense of some investors.

FCA said it was close to issuing results Former investigation In private market evaluation practices, adding: “Companies should consider the report’s results to ensure that the evaluation processes are strong, with a strong and review governing frame.”

In the inclusion of private markets as a maximum priority in overseeing the asset management sector and alternative funds funds, the organizer said: “With the rapid growth in private markets, we expect to see advanced and updated procedures to determine and alleviate the conflict of interests.

“We will evaluate how companies oversee the application of a framework that contradicts them through the governance bodies and their reviews by the three defense lines, to ensure that the results of investors are not exposed to danger.”

Continuing money, which is one of the financial tools mentioned by the organizer in its message, allows the capital companies to transfer the assets you own through one box that they run to another.

The mechanism constitutes possible conflicts, which leaves investors in the old or new box to lose it, although operations usually include a new investor to consolidate the price.

Last year, there were $ 62 billion of transactions that include continuing funds worldwide, an increase of $ 43 billion in 2023, according to a report issued by Campbell Lutens.

The FCA step comes to highlight the private asset market despite the increasing pressure from the Sir Kerr Starmer government to the organizers to reduce the bureaucracy burden on business and do more to support the sparkling economy in the UK.

FCA also said it is planning to simplify the reports requirements of many private asset managers as part of a review of the alternative investment fund managers regulations.

However, the Executive Director of FCA Sarah Bretchard said this week that the review is likely to include “some targeted changes” of the data collected by private asset fund managers to learn more about their use of the leverage.

This article has been modified to clarify the nature of FCA correspondence with asset management companies.