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Civil Proceedings: Third Party Financing

Question for Ministry of Justice

UIN HL4213, tabled on 19 December 2016

To ask Her Majesty’s Government whether, in the light of the rapid expansion of third party litigation, they plan to introduce statutory regulation of funders.

Answered on

24 January 2017

The Government does not believe that the case has been made out for moving away from voluntary regulation, as agreed by Parliament during the passage of the Legal Aid, Sentencing and Punishment of Offenders Act 2012. The market for third party litigation funding, remains at a relatively early stage in its development in this jurisdiction and we are not aware of specific concerns about the activities of litigation funders. The Government has not therefore undertaken a formal assessment of the effectiveness of the voluntary code of conduct or the membership of the Association of Litigation Funders. The last Government gave Parliament an assurance that it will keep third party litigation funding under review and this Government is ready to investigate matters further should the need arise.