The UK’s Financial Conduct Authority (FCA) is set to require private credit managers to report more frequent and tailored data as fears mount over the opacity and stability of the industry, Reuters has reported.

Citing sources, the news agency said the FCA had reached out to alternative asset managers including private credit and equity providers to inform them of an overhaul to reporting requirements.

The planned changes would increase reporting requirements across the industry, with two potential models under consideration. According to the sources, the first would see managers forced to disclose granular, loan-level data on a regular basis, which would be unpopular in the industry, while the second would only require fund-level data to be reported.

The FCA intends to formally begin consultation with the industry on the matter in the coming months, sources said.

The regulator told Reuters that “improving how we collect data ‌so it ⁠is timely, accurate and proportionate will maintain the UK’s position as a world-leading asset management centre.

“Better data means we can supervise risks effectively, support market confidence and identify opportunities for growth.”

The news follows in the wake of a report by international watchdog the Financial Stability Board that warned interlinkages between private credit, banks and insurance companies create vulnerabilities in the $2 trillion market.

In December, the Bank of England began a stress test of private markets with the voluntary cooperation of many major private credit providers including Apollo, Blackstone and KKR. The exercise will focus on how private markets including private credit and equity, which together total $16 trillion, operate under stress, and the potential implications for UK financial stability.

The FCA is expected to use the results of this stress test as a starting point for its own regulations, according to sources.

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