UBS Group AG is facing regulatory scrutiny over fee-sharing arrangements with private equity firms Carlyle Group Inc. and CVC Capital Partners that have raised concerns about potential conflicts of interest.

The agreements between Switzerland's largest bank and the two prominent private equity firms have drawn attention from regulators who are examining whether such arrangements could influence UBS's investment advice to clients. Fee-sharing deals typically involve banks receiving compensation when they direct clients toward specific investment products or services.

Conflict of interest concerns arise when financial institutions have economic incentives that may not align with their clients' best interests. Regulators globally have increased oversight of such arrangements following past instances where banks were found to have prioritized their own profits over client welfare.

The scrutiny comes as UBS continues to expand its wealth management and investment banking operations following its acquisition of Credit Suisse earlier this year. The bank has been working to integrate the two institutions while maintaining compliance with regulatory requirements across multiple jurisdictions.

Neither UBS, Carlyle, nor CVC immediately responded to requests for comment regarding the specific terms of their arrangements or the regulatory concerns. The investigation's outcome could influence how major financial institutions structure similar partnerships going forward.