The UK’s Financial Conduct Authority (FCA) is preparing to significantly expand data reporting requirements for private credit managers, as regulators increase scrutiny of a rapidly growing market that has drawn concerns over opacity and potential systemic risk, according to a report by the Financial Times.
The FCA has been in discussions with major private capital firms about overhauling disclosure rules, with proposals that would require more detailed, loan-by-loan reporting from fund managers operating in the UK, according to people familiar with the matter.
The initiative would build on voluntary data submissions already provided by leading firms including Apollo, Blackstone, and KKR to the Bank of England, which is conducting a stress test of the roughly $16tn global non-bank finance sector.
Under the proposed framework, the FCA is expected to formalise and expand reporting obligations, making enhanced disclosures compulsory for private credit fund managers and aligning more closely with data already shared with the central bank.
While current rules require only limited fund-level information, regulators are now pushing for more granular visibility into underlying loan exposures, reflecting concerns that existing frameworks are insufficient to assess risks building within the sector.
The FCA said improved data collection would enhance supervisory effectiveness and market confidence, adding that more timely and accurate reporting would support the UK’s position as a global asset management hub.
Industry participants, however, are expected to resist elements of the proposals, arguing that private credit firms should not be subject to bank-style reporting burdens given they do not operate with retail deposits and have different risk structures.
The push for greater transparency comes amid heightened global attention on private credit markets following several recent stress events. In the US, collapses involving First Brands and Tricolor highlighted risks in asset-backed lending, while some funds have faced redemption pressures linked to exposure to sectors affected by artificial intelligence disruption.
In the UK, the collapse of bridging lender Market Financial Solutions earlier this year also resulted in losses for both banks and private credit investors, adding to regulatory concerns.
Bank of England Governor Andrew Bailey has previously warned that opacity in private credit markets, combined with uncertainty around liquidity under stress conditions, could contribute to broader financial instability.
The Financial Stability Board has likewise flagged significant data gaps in the sector and urged regulators globally to strengthen oversight, particularly around fund-level and loan-level exposures.
Despite industry resistance, regulators are moving ahead with expanded monitoring efforts, with participation from major asset managers including Goldman Sachs Asset Management, Carlyle, and Oaktree in the Bank of England’s ongoing private market stress testing programme.
