On 15 November 2010, IOSCO published its above report following a May 2008 report which identified conflicts of interest as a potential key risk in private equity sponsored transactions.
The final report focuses on the risks posed to fund investors and the efficient functioning of financial markets from the conflicts of interest which can exist within private equity firms or private equity funds. In particular, the report examines the potential conflicts of interest that the managers of such funds can face.
The report contains a set of eight principles for the effective mitigation of conflicts of interest in private equity firms. Although the principles were developed for multi-fund, multi-strategy private equity firms, the report explains that they can be applied to all private equity firms.