UK regulator urges tighter private market controls to avoid conflicts of interest

Oct 23 (Reuters) - Britain's financial watchdog on Friday called on private market firms to improve how they identify and manage conflicts of interest as the sector expands and business models grow more complex.

The Financial Conduct Authority (FCA) said a review of private equity, private credit and real estate firms found standards varied widely, with some firms showing strong governance and oversight while others failed to identify conflicts properly or keep controls up to date. 

The FCA said it expects firms to be able to identify, record, manage and disclose conflicts effectively, and demonstrate that investors are being treated fairly, particularly in areas where investors place significant reliance on firms' judgement, governance and controls. 

(Reporting by Nithyashree R B in Bengaluru; Editing by Harikrishnan Nair)