FCA compulsory questionnaire on conflicts of interest in private markets

The Financial Conduct Authority (FCA) has launched a wide-ranging ‘Conflicts of Interest and Fair Treatment of Customers in Private Markets’ Review. It is compulsory for selected firms to complete a detailed questionnaire by 2 January 2026.

This latest questionnaire marks the regulator’s most comprehensive examination yet of how private equity, private credit and real estate managers identify, manage, and mitigate conflicts of interest across their operations.

A growing regulatory focus

The FCA has been signalling a renewed focus on firms’ approach to conflicts for some time. Recent speeches, thematic work and the Asset Management Supervision Strategy have all highlighted concerns about:

• firms managing multiple funds investing in similar assets;

• preferential treatment of investors; and

• the robustness of internal governance and disclosure frameworks.

What is covered

The questionnaire seeks detailed information on:

• firm and fund-level data across private equity, credit and real estate portfolios;

• conflicts frameworks and registers, including escalation routes and oversight committees;

• disclosure practices to investors, particularly around preferential treatment and cross-fund transactions; and

• governance arrangements - from training and monitoring to board-level accountability.

The FCA’s aim is to benchmark industry practices, identify weaknesses and ultimately ensure fair treatment of investors in private markets.

What this signals

This review makes clear that the FCA expects firms to move beyond having a conflicts policy “on paper”. In relation to conflict management the regulator is expecting to see:

• evidence of active oversight and escalation;

• regular reviews of conflicts registers;

• transparent disclosure to investors; and

• board-level engagement in conflicts management.

For many firms, particularly those operating multiple vehicles or engaging in continuation and cross-fund transactions, the increased focus on conflicts will demand a more integrated and documented approach.

Preparing for what’s next

This review should be seen as part of the FCA’s continuing shift toward proactive, evidence-based supervision. Firms that can clearly articulate how conflicts are identified, monitored and resolved will be best placed to meet expectations - and to reassure both regulators and investors of their commitment to fair outcomes.

How we can help

Our compliance consultants support private market managers in:

• gap-analysis and readiness reviews against the FCA questionnaire;

• policy and register updates, aligning with SYSC 10, AIFMD and MiFID requirements;

• governance enhancement, including committee terms of reference and escalation protocols; and

• training and disclosure frameworks that demonstrate real-world implementation.

Also, should you receive the questionnaire, we can be on hand to help provide a well drafted response which navigates any potential pitfalls that may arise, as with any interaction with the regulator.

For further guidance on preparing your response or strengthening your conflicts management framework, please get in touch.