The Treasurer has announced that litigation funders will be required to hold an Australian Financial Services Licence (AFSL) and comply with the managed investment scheme regime.
Litigation funders are currently exempt from holding an AFSL and being categorised as a managed investment scheme.
The amendments to the regulations will take effect from 22 August 2020.
These changes complement the inquiry being undertaken by the Parliamentary Joint Committee on Corporations and Financial Services into litigation funding and the regulation of the class action industry which is due to report by 7 December 2020.
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Author: David Jacobson
Principal, Bright Corporate Law
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About David Jacobson
The information contained in this article is not legal advice. It is not to be relied upon as a full statement of the law. You should seek professional advice for your specific needs and circumstances before acting or relying on any of the content.
