FCA flags private credit resilience amid market stress concerns
FCA deputy CEO Sarah Pritchard addressed private markets stress, noting concerns over private credit and emphasising the need for systemic resilience.
FCA leadership acknowledged growing market commentary on private credit fragility but emphasised system resilience. Expect intensified supervisory attention on valuations, liquidity risk and disclosure across private markets.
Foreshadows tighter FCA oversight of private credit funds, valuations and liquidity risk management.
Action Required
Stress test private credit and private markets exposures; review valuation, liquidity and transparency frameworks.
Senior FCA commentary signalling supervisory direction on a systemically growing asset class.
Private credit risk elevated. Enhance valuation governance, liquidity stress testing and investor disclosures. Prepare for supervisory dialogue on resilience and concentration.
“Speech by Sarah Pritchard, deputy chief executive, at the Investment Association's Private Markets Summit 2026, addressing private credit stress and the importance of system resilience.”