Private Equity

Private market valuations face moment of truth: ‘If regulators see something egregious, they will sanction’

The FCA has been examining governance and accountability. Will private markets stand up to the test?

Private market valuations face moment of truth: ‘If regulators see something egregious, they will sanction’
Photo: Getty Images/iStockphoto

The Financial Conduct Authority is preparing to release the results of a probe into private markets valuations, but firms are still falling short on how they mark assets, according to experts.

The City watchdog said in a letter last March that it would be examining valuation practices in private markets, taking a look at who is accountable for appraising inherently opaque assets, and how that information is reported.

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