To ask Her Majesty’s Government whether they plan to introduce regulations to ensure that third party litigation funders are subject to the same statutory duties and obligations as apply to law firms operating in the same field.
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.