CP 345 Litigation funding schemes: Guidance and relief
The submission to the Australian Securities & Investments Commission (ASIC) in response to its Consultation Paper 345: Litigation funding schemes: Guidance and Relief (Consultation Paper) was prepared by the Law Council of Australia.
The Consultation Paper sets out ASIC’s proposals to:
- provide guidance on how key definitions in the Corporations Act 2001 (Cth) (Corporations Act) apply to litigation funding schemes;
- grant legislative relief from the equal treatment duty of responsible entities of registered litigation funding schemes to enable the distribution of a resolution sum to members;
- extend relief granted for litigation funding schemes under the ASIC Corporations (Disclosure in Dollars) Instrument 2016/767 to 22 August 2025; and
- not remake relief granted under ASIC Credit (Litigation Funding-Exclusion) Instrument 2020/37 and ASIC Corporations (Conditional Costs Schemes) Instrument 2020/38 when these instruments expire on 31 January 2023.
On the first of the above points, the Law Council agrees that it is helpful for ASIC to give guidance on how it applies key statutory definitions to litigation funding schemes. More detailed submissions in relation to other proposals within the Consultation Paper are set out below, with a particular emphasis on the intention to not remake relief granted under ASIC Credit (Litigation Funding-Exclusion) Instrument 2020/37 and ASIC Corporations (Conditional Costs Schemes) Instrument 2020/38 when these instruments expire on 31 January 2023.
You can read the full submission below.
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