Rising to the occasion on private markets 

On "29/10/2024", the "Financial Conduct Authority" issued an update regarding "Rising to the occasion on private markets". Nikhil Rathi, FCA Chief Executive, delivered a speech at the Investment Association Annual Dinner, highlighting the growth of private markets and the need for greater transparency and collaboration.

The speech touched on several key issues, including the regulation of motor finance commissions, the growth of private markets, technological innovation, value and fees, enabling and proportionate regulation, and talent and skills. Rathi emphasized the importance of finding a balance between risk management and capital unlocking in private markets, as well as the need for regulatory clarity and proportionality.

Private market AUM is estimated to be around $14 trillion, with 2 million people relying on it each year to buy a car. The UK has seen significant growth in private market AUM, but not to the same scale as the US. Rathi encouraged firms to engage with the FCA to ensure fair treatment of customers and to work towards creating a more competitive market for UK corporates.

The speech also highlighted the need for technological innovation, including tokenisation, which could democratise private assets and enhance liquidity. Rathi emphasized the importance of transparency and clear ownership of risks in private markets, as well as the need for an enabling regulatory environment that supports innovation and growth.