AIC calls for private equity freedom

Responding to the FSA’s consultation paper, ‘Private equity: a discussion of risk and regulatory environment’, the AIC said the risks identified by the FSA in relation to private equity investment are reduced when listed investment companies are involved. This stems from high governance and transparency requirements which apply to listed private equity investment companies. The AIC responded to the FSA document because it believes the regulator suggested that potential conflicts of interest between shareholders and managers of private equity funds cause concern. However, the AIC said l...