Private equity firms face extra regulation

The regulator will also conduct bi-annual reviews of banks’ exposure to leveraged buyouts as it seeks to reduce the risks of market failure. The developments follow feedback from a consultation on the growth of the private equity sector designed to allow the FSA to assess its regulatory implications. The FSA said the results had in general led it to conclude its approach to the sector was ‘appropriate and effective’. It said the most significant risks were market abuse and conflicts of interest, adding these areas would remain its chief focus when considering regulation of private ...