Exclusive Interview with FCA Chief Executive Nikhil Rathi: Private Equity Risks and Regulatory Stance
In a recent interview, Nikhil Rathi, the chief executive of Britain’s Financial Conduct Authority, expressed his skepticism about the systemic risk posed by private equity groups. This stance puts him at odds with the Bank of England, which recently issued warnings about the risks associated with the $8tn industry. Rathi emphasized the importance of transparency and data sharing from the private equity industry to better understand and assess the risks involved.
Rathi, who also sits on the BoE’s financial policy committee, highlighted the need for evidence-based decision-making rather than implementing regulatory measures without sufficient data. The committee’s recent report raised concerns about private equity’s leverage, transparency, and valuations, but Rathi cautioned against overregulation without solid evidence.
In other news, UK banks saw a significant increase in interest earned on their Bank of England reserves, with the largest high street lenders earning over £9bn last year. Economic data releases from the OECD and S&P Global, as well as meetings between French President Emmanuel Macron and Japanese Prime Minister Fumio Kishida, are also on the agenda for today.
Additionally, the UK local elections taking place today will determine Prime Minister Rishi Sunak’s political fate, with contests for council seats and mayoralties across England and Wales. Results from companies like Apple, Shell, and Standard Chartered are also expected.
In international news, the US military is nearing completion of a floating pier off Gaza to facilitate humanitarian aid delivery, while ceasefire talks between Israel and Hamas are ongoing. Shareholders in Shell are pushing for greater climate action, and Uber is facing a lawsuit from London’s black-cab drivers.
Overall, a mix of financial, political, and international developments are shaping the news landscape today, with key events and decisions impacting various sectors and regions. Stay informed with the latest updates delivered directly to your inbox.