FCA considers quarterly disclosure regime for UK private credit firms

The Financial Conduct Authority is weighing a new quarterly reporting mandate for private credit firms in the UK, a move that would significantly ramp up transparency requirements in one of the fastest-growing corners of alternative finance.

The proposed regime would require firms to disclose detailed data on portfolios, valuations, covenants, and loan terms on a quarterly basis.

From semi-annual to quarterly: what’s changing

Right now, reporting obligations for private credit firms under the existing Annex IV framework are predominantly semi-annual or annual. Larger entities already file quarterly, but the bulk of the market operates on a more leisurely disclosure schedule.

The FCA wants to change that across the board. The regulator has pointed to a March 2025 multi-firm review of private market valuation practices as the foundation for these proposed requirements.

Industry pushback: portfolio-level vs. loan-level

Not everyone is thrilled about the prospect. Market participants have already begun lobbying for a lighter touch, specifically advocating for portfolio-level metrics rather than granular loan-level reporting.

The distinction matters more than it might sound. Portfolio-level data would give regulators a bird’s-eye view: aggregate exposure by sector, average leverage multiples, overall default rates, that sort of thing. Loan-level data, by contrast, would mean disclosing specifics on individual credits. Think borrower details, individual covenant packages, specific pricing terms, and mark-to-model valuations for each position.

What this means for investors

On the positive side, mandatory quarterly disclosures would represent a meaningful upgrade in the information available to investors. If regulators succeed in standardizing what gets reported and how often, it becomes much easier for pension funds, insurers, and endowments to compare managers on an apples-to-apples basis.

Enhanced disclosure could also widen the investor base. Some institutional allocators have stayed on the sidelines precisely because they couldn’t get comfortable with the limited visibility into underlying portfolios.

The FCA’s proposals remain in preliminary discussions, with no formal timeline for implementation announced.

Disclosure: This article was edited by Editorial Team. For more information on how we create and review content, see our Editorial Policy.