FCA asks private equity about knock-on effects of market turmoil
Britain’s financial regulator has been asking private equity firms how rising rates and the bond market turmoil unleashed by the government’s “mini” Budget are affecting them and their investors, as it assesses potential risks in an industry that has ballooned in influence over the past decade.
Officials at the Financial Conduct Authority have contacted several buyout groups following former chancellor Kwasi Kwarteng’s mini-Budget in late September, according to people briefed on the calls.
The failed fiscal plan triggered a meltdown in the UK government bond market that forced some pension funds into fire sales of their assets.
This story originally appeared on: Financial Times - Author:Kaye Wiggins
