The GRC Navigator

The FCA has launched a £1 million campaign to raise awareness that consumers do not need claims management companies or law firms to access the proposed motor finance compensation scheme.

• The campaign aims to prevent consumer exploitation by third-party claims processors charging unnecessary fees
• The initiative follows widespread concerns about potentially mis-sold motor finance products and associated commission arrangements
• Motor finance providers should prepare for increased scrutiny and potential redress obligations

The regulator has announced further cuts to data reporting requirements that will benefit 11,000 retail intermediary firms, continuing its broader data collection transformation initiative.

• The reductions form part of the FCA’s ongoing effort to eliminate unnecessary regulatory burden while maintaining supervisory effectiveness
• Affected firms should review updated reporting obligations to ensure continued compliance
• The changes extend proportionate regulation to smaller firms

The FCA has published consultation proposals that could increase convenience for consumers making larger contactless payments by removing current transaction limits.

• The proposals recognise advances in fraud detection technology and consumer payment preferences
• Payment service providers would gain flexibility to set appropriate limits based on their risk management capabilities
• Implementation could enhance UK competitiveness in digital payments innovation

The Bank of England has published a Discussion Paper seeking views on measures to enhance the resilience of the gilt repo market, with feedback due by 28 November 2025.

• Greater central clearing of gilt repo: The BoE proposes expanding central clearing to improve dealer balance-sheet efficiency, reduce counterparty credit risk, and limit risks from disorderly unwinds of highly leveraged, concentrated positions
• Minimum haircuts for non-centrally-cleared gilt repo: New requirements would address current practices where haircuts are often zero or near-zero, though the BoE acknowledges potential cost-of-trading impacts
• Enhanced transparency measures: Additional ideas include improved public and private counterparty disclosures to support market confidence during stress periods
• The proposals follow lessons from the System-wide Exploratory Scenario and recent market stress episodes, with international precedent from US SEC mandates for Treasury clearing by mid-2027

Blackstone has provided $250 million in seed capital to launch Covara, a new credit hedge fund targeting dislocations across global corporate credit, structured credit, and event-driven situations.

• The strategy seeks idiosyncratic relative-value trades and opportunistic long/short exposures as refinancing walls and higher rates create spread volatility
• The seed backs a view that active credit strategies can profit from dispersion as capital structures adjust to higher rates

A former senior partner at King Street is reportedly preparing to launch a new hedge fund targeting approximately $1 billion, focused on credit and special situations strategies.

• The platform will combine fundamental bottom-up analysis with tactical trading around catalysts including refinancings, restructurings, and litigation milestones
• The vehicle offers exposure to complex capital structures where dispersion is increasing as financing costs reset and debt maturities cluster

Other Notable Fund Closes:

Veritas Capital Closes Ninth Flagship at $14.4B, exceeding its original $13 billion target on strong oversubscription—underscoring continued LP demand for defence, healthcare and government services specialists.

One Equity Partners IX Closes at $3.25B, to pursue control investments across industrial and healthcare niches.

Pemberton Final Closes NAV Financing Core Fund I at $1.7B, marking a strong entry into portfolio-level lending solutions for PE owners amid sustained demand for liquidity tools.

Carlyle Targets $4B+ Portfolio Finance Fund via AlpInvest, offering GPs and LPs additional options to unlock liquidity from illiquid PE stakes.

HSBC AM Launches Evergreen PE Fund for HNW Investors extending private-market access beyond traditional institutional channels.

Great Hill Partners Closes Flagship at $7B, Above Target, surpassing a $5 billion target and hitting the hard cap after an accelerated five-month raise.

Peak Rock Raises $3B+ Across PE and Private Credit amassing $3B+ to pursue control buyouts and credit opportunities.

Benefit Street Partners Closes $2.3B Private Credit Continuation Vehicle signalling growing secondaries activity in private credit alongside NAV-style solutions.

Centre Partners Targets $150M for Fund VIII (Hard Cap $200M) continuing its lower-mid-market buyout strategy.

Fund managers are rapidly launching new vehicles targeting artificial intelligence themes, including infrastructure, semiconductor supply chains, data centres, and software platforms across public and private markets.

• Launch momentum reflects strong investor demand for exposure to genuine growth and productivity stories amid uncertain macroeconomic conditions
• However, concentration risks, crowded trades, and valuation concerns remain across AI-focused strategies

Allocations to hedge funds have accelerated to their strongest monthly pace in years, as institutional investors seek diversification, downside protection, and differentiated alpha sources.

• The revival reflects improved three- and five-year performance track records and higher base rates enhancing cash yields on collateral
• Growing confidence in multi-manager platforms, event-driven, credit, and macro strategies is driving renewed institutional interest
• Flows favour scalable managers with sound operations, transparency, and a risk discipline that outlasts cyclical style tailwinds

Citadel’s founder has warned that political attacks on the Federal Reserve could undermine market confidence, threaten central bank independence, and increase risk premia across asset classes.

• Political pressure on monetary policy may complicate inflation-fighting credibility and increase volatility around policy decisions
• Portfolio managers should enhance liquidity management and hedging around policy events given potential political intervention risks