Press Releases

The Financial Services Regulation Committee publishes its report ‘Private markets: Unknown unknowns’ – LMA Welcomes Strategic Focus on Market Evolution and Stability

The House of Lords Financial Services Regulation Committee has published its landmark report, “Private markets: Unknown unknowns,” highlighting the rapid growth and increasing complexity of global private markets, particularly private credit and equity. The report underscores both the opportunities and risks for the UK as a leading financial centre, calling for proactive regulatory oversight and enhanced data transparency. The Loan Market Association (LMA) welcomes the Committee’s recommendations and reaffirms its commitment to supporting market integrity, innovation, and financial stability.

Key Outcomes and LMA Contribution:

• The report identifies the UK as the first major market to experience the full impact of private market growth, emphasising the need for robust monitoring of systemic risks, especially those arising from interconnections with banks and insurers. 
• Regulatory reforms post-2008 have shifted riskier lending away from banks to private markets, creating both new opportunities for tailored finance and challenges for SME access to credit.
• The LMA’s evidence and market analysis were instrumental in highlighting the emergence of private credit securitisation, the development of significant risk transfers, and the evolving partnership models between banks and private credit funds. 
• The Committee’s recommendations reflect LMA advocacy for improved data collection, proportionate regulation, and the need for ongoing dialogue between market participants, regulators, and policymakers to ensure the UK’s continued leadership in loan market standards. 

Scott McMunn, CEO, Loan Market Association:

“As the UK navigates the next phase of private market evolution, the LMA remains steadfast in its mission to promote transparency, resilience, and innovation across the loan markets. We welcome the Committee’s recognition of both the opportunities and the risks inherent in this growth, and we look forward to working closely with regulators and our members to ensure that the UK remains a global benchmark for market integrity and best practice.”

Kathrine Meloni, Special Adviser and Head of Treasury Insight, Slaughter and May:

“The evidence provided to the Committee illustrates how the loan market has been fundamentally reshaped by the post-GFC prudential and regulatory framework.  As well as drawing out the market segments where private credit is working alongside, or in place of traditional bank lending, the Report shines a light on gaps in regulated sector activity which private credit is not currently best-placed to fill. Market participants are likely to welcome the Report’s reiteration of the Committee’s suggestion that the authorities should review the regulatory constraints on the supply of credit to SMEs that are a crucial part of the agenda for growth. The key message coming out of the Report is that further work is required by the whole industry to help policy makers better understand the operation and trajectory of the credit markets in their widest sense.”

To speak with us about this report, please contact Leyla.ghaffar-zadeh@lma.eu.com

To read the full report please click here.