FCA Actively Monitors Risks Of Private Markets To Financial Stability

Valeria Martinez
clock

• 2 min read

The Financial Conduct Authority is monitoring the build-up of leverage in private markets as part of its joint evaluation with international regulators of the risks the non-bank sector could bring to financial stability.

During the financial regulator's annual public meeting on Wednesday (4 October), CEO Nikhil Rathi said risks may begin to crystallise in private markets following the shift from a period of low interest rates to a ‘higher rates for longer' macroeconomic environment.  "At some point, you might expect that risk will crystallise in valuations of assets. Those valuations of assets could be assets such as commercial real estate, and we know what is happening in China," he said.  Rathi also noted the watchdog has observed the rapid growth of the private markets, as well as the use of levera...

To continue reading this article...

Join Investment Week

Signup and gain exclusive members-only insights

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week

member?

Login

RECENT NEWS

What Advisers Misunderstand About Protection

Protection is rarely rejected outright. More often, it is misunderstood. Most advisers recognise th... Read more

Gyrostat Market Outlook: Looking Beyond The 30-day Volatility Headlines

This outlook examines how financial markets are pricing risk rather than attempting to forecast market... Read more

Gyrostat Capital Management: The Hidden Assumption In Most Portfolios - Stability

Markets do not usually fail portfolios. Assumptions do. Most portfolios are built with car... Read more

Gyrostat February Outlook: Stewardship As Risk Reprices

This monthly outlook examines how financial markets are pricing risk, rather than attempting to forecast ... Read more

Gyrostat Capital Management: Why Risk Management Is Not About Predicting Risk

Why Risk Management is Not About Predicting Risk Financial markets reward confidence, but they punish certai... Read more

Gyrostat January Outlook: Calm At Multiyear Extremes

This monthly Gyrostat Risk-Managed Market Outlook does not attempt to forecast market direction. Its p... Read more