UK private markets firms are managing conflicts of interest inconsistently and need to prove they are treating investors fairly, according to a new report from the UK Financial Conduct Authority (FCA).

The regulator said the sector โ€“ which includes asset managers, alternative investment fund managers (AIFMs) and investment advisers operating in private markets โ€“ is growing significantly and becoming more complex. But some firms are failing to identify conflicts adequately, or to keep their controls up to date.

Ruth Prickett graduated from Cambridge University with a BA hons in History and has specialized in business and finance journalism for the past 20 years. She was editor of Financial Management, the magazine...