The FCA’s deputy CEO Sarah Pritchard has called for providers to engage with the regulator on addressing conduct risks to foster confidence in private markets.

Pritchard also said the regulator is supporting global efforts to standardise approaches to private markets to remove 'blind spots'.

Speaking at the Investment Association’s Private Markets Summit 2026 today (11 May), Pritchard highlighted the importance of addressing conduct risks, which she said are no less important than financial stability risks.

“They can harm investors, erode market integrity and undermine trust,” she said. “Those are the risks we’re looking at. And we’re looking at them early. Taking a system-wide view. And publishing our findings so that the market is clear on our expectations.”

Pritchard said robust valuation frameworks and processes are key to investor confidence and critical to market integrity, adding the FCA will continue to engage with the industry on how firms have responded to its multi-firm review of valuation processes for private market assets, published in March 2025.

The regulator is taking a similar approach with its multi-firm review of conflicts of interest, which is currently underway.

“We are focusing on conflicts because confidence rests on knowing decisions are made in investors’ interests, with incentives aligned to delivering long‑term outcomes,” Pritchard said.

“We’ve already gathered information about how firms identify conflicts and design their frameworks. Next, we’ll consider how they operate in practice before publishing our findings later this year.”

Pritchard referred to the recent redemption issues seen in private credit when a US private credit firm Blue Owl was forced to cap investor withdrawals after being hit by redemption requests worth billions in a single quarter.

“It maintains that its underlying loans are sound and the mad dash for the exit was brought on by negative sentiment, not reality. That may well be true. But the surge in withdrawal requests tells us something important. When investors can’t see clearly into a portfolio, they won’t wait to find out what’s there. The loss of confidence didn’t happen because controls had visibly broken down. It happened because investors couldn’t trust that they hadn’t,” Pritchard said.

She said confidence comes from three places: firms with strong first-line controls, a sensible regulator, and a well-connected system.

"Private markets are cross-border in nature, so regulation has to be internationally minded, too. That’s why we work with partners across the world to share information, identify risks and build more consistent approaches.

"We support global efforts to standardise the way we talk about private markets because when there are countless definitions of activities, it’s difficult to know whether we’re all talking about the same thing and that makes it harder to compare notes and share insights, and more burdensome for firms working across multiple jurisdictions. Confidence comes when we remove blind spots, improve consistency and spot the emerging issues before they take root."

Pritchard concluded: “Private markets are important to the UK’s future and they deserve serious, proportionate oversight.

“As regulator, our job is to stay alert. Clear-eyed. And focused on the standards that help drive confidence. Your job is to keep the basics strong. Make your governance real. Engage with us on reform. 

“If we both hold to that, private markets won’t just withstand scrutiny as they grow – they’ll earn confidence and they’ll thrive.”