He said: “We are doing our own work on valuation practices in the fund industry with a multi-firm review examining valuation practices for private assets. We expect this work to run until the end of the year and will include a probe into the personal accountabilities for valuation practices in firms, governance of valuation committees, what information is reported to boards and oversight of boards.
“And I’ve cautioned the private equity industry that they need to proactively help us get the information we need.”
Technology
Rathi also discussed that the FCA wanted to leverage AI in a way that “drives benefits to UK markets and consumers and stimulates competition”.
“For now, we are of the view that existing regulations can be applied to this area without writing new rules. But we will keep an open mind if new threats or issues emerge,” he added.
Rathi highlighted the work the FCA was doing was to make the UK “the best place to do business in the world” but added it needed the help of industry to achieve that.
He said: “We need your help. We don’t just make the rules, we help shape the ecosystem and long-term risk appetite that firms operate with.”
alina.khan@ft.com
