The Financial Services Authority (FSA) has today published a discussion paper on the impact that the growth in the private equity market has had on the UK's wholesale markets and how the FSA is meeting the challenges this poses.
The FSA believes that the private equity market is an increasingly important component of international capital markets and makes a key contribution to the efficiency of these markets. However, recent market developments have prompted the FSA to consider whether it currently exercises an appropriate level of regulatory engagement with the sector.
The FSA is seeking feedback from the industry and public policy makers on whether it has correctly identified the risks posed by the growth private equity market and the suitability of its regulatory approach in addressing these risks.
Hector Sants, FSA Wholesale Markets and Institutions Managing Director, said:
"We believe private equity can significantly enhance capital market efficiency by widening the availability of capital, increasing the effectiveness of company valuations, identifying companies with growth potential and facilitating their transformation.
See full Press Release.
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