Litigation funders

Government debate continues on how to regulate litigation funders but its intention is to permanently exclude funded class actions from the managed investment and licensing requirements.

The problem is that the courts regard litigation funding arrangements as “managed investment schemes” and subject to the financial services licensing regime under the Corporations Act.

This means that it has been necessary to give funders temporary exemptions from the managed investment and licensing requirements. The latest exemption was given by ASIC on 30 September, 2011 and operates until 29 February, 2012. This allows the government further time to implement a more permanent solution to these temporary stop gap measures.

Scroll to Top