Key Takeaways
- • UK and Australian financial regulators agreed to strengthen cooperation on emerging risks in private markets, with private credit growth, asset valuations and governance as the focal points, according to a joint statement published by the Treasury.
- • The agreement was reached at the second UK-Australia Joint Financial Regulatory Forum held on 27 October, bringing together HM Treasury, the Australian Treasury, the Bank of England, the FCA, the Reserve Bank of Australia and ASIC.
- • The UK highlighted the Bank of England's System-Wide Exploratory Scenario on private markets and the FCA's oversight of alternative investment fund managers, while the PRA supervises bank and insurer exposures to private equity, private credit and funded reinsurance.
- • Australia outlined proposed reforms to improve data collection for managed investment schemes and increase regulatory visibility of the private credit sector, with a focus on superannuation fund valuation and governance practices.
- • Both countries committed to continue sharing information on market developments, supervisory experience and emerging risks, while acknowledging private capital's contribution to innovation and productive investment.
Summary
UK and Australian regulators have agreed to deepen cooperation on emerging risks in private markets, including the rapid growth of private credit, asset valuations and governance. The commitment was made at the second UK-Australia Joint Financial Regulatory Forum, held on 27 October, according to a joint statement published by the Treasury.
The joint statement acknowledged the contribution private capital can make to "innovation, productive investment and diversified sources of finance" but stressed the need to monitor risks as the sector expands. The forum brought together representatives from HM Treasury, the Australian Treasury, the Bank of England, the Financial Conduct Authority, the Reserve Bank of Australia and the Australian Securities and Investments Commission, among other regulators.
On the UK side, the discussion covered the Bank of England's System-Wide Exploratory Scenario on private markets, the FCA's oversight of alternative investment fund managers, and the Prudential Regulation Authority's supervision of banks' and insurers' exposures to private equity, private credit and funded reinsurance.
Australia outlined proposed reforms to improve data collection for managed investment schemes and to increase "regulatory visibility of the private credit sector." The statement also highlighted Australia's focus on the "valuation and governance practices of superannuation funds," which are becoming increasingly important investors in unlisted assets.
Both countries agreed to "continue sharing information on market developments, supervisory experience and emerging risks."
The joint statement acknowledged the contribution private capital can make to "innovation, productive investment and diversified sources of finance" but stressed the need to monitor risks as the sector expands. The forum brought together representatives from HM Treasury, the Australian Treasury, the Bank of England, the Financial Conduct Authority, the Reserve Bank of Australia and the Australian Securities and Investments Commission, among other regulators.
On the UK side, the discussion covered the Bank of England's System-Wide Exploratory Scenario on private markets, the FCA's oversight of alternative investment fund managers, and the Prudential Regulation Authority's supervision of banks' and insurers' exposures to private equity, private credit and funded reinsurance.
Australia outlined proposed reforms to improve data collection for managed investment schemes and to increase "regulatory visibility of the private credit sector." The statement also highlighted Australia's focus on the "valuation and governance practices of superannuation funds," which are becoming increasingly important investors in unlisted assets.
Both countries agreed to "continue sharing information on market developments, supervisory experience and emerging risks."
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.