Legal Services / Litigation Funding has been in the news recently and is defined by ASIC in general terms as:
… a third-party (a litigation funder) with no direct interest in proceedings agreeing to finance some or all of a party’s legal costs (which can include solicitors’ fees, counsels’ fees and other disbursements) in return for a share of any proceeds of the litigation.
Legal Services / Litigation Funding – Parliamentary Review
The Australian Government is in the midst of (early) steps to regulate the Litigation Funding.
It is expected regulations will in future impose upon Litigation Funders, especially those providing funding to Class Actions and Class Action Members – retail investors, a requirement to hold an AFSL AND be regulated under and through a Managed Investment Scheme.
…. the gist of the regulation is that Legal Services / Litigation Funding is a “financial product” and that Litigation Funders (including those based in the New York, London or elsewhere) are actually thus…
carrying on a financial services business in Australia
Therefore, we expect, Funders will be required to be regulated in the same way that other providers of financial services – in Australia – are required.
Submissions in this Government Review have closed and can be viewed online here.
A copy of the draft regulations materials is available here – click link.
Litigation Funding is available to be procured from an associated company of DCP Solutions.
For more information chat with us live using our instant chat tools (bottom corners), book an appointment or call now on 1300-327123.