To avoid any uncertainty arising from Brookfield Multiplex Ltd v International Litigation Funding Partners Pte Ltd [2009] FCAFC 147, ASIC has announced its intention to grant transitional relief to lawyers and litigation funders involved in legal proceedings structured as funded class actions.

The relief, which will apply until 30 June 2010, is from the requirements that would otherwise apply to funded class actions as ‘managed investment schemes’ under Chapter 5C and Chapter 7 of the Corporations Act 2001 (the Act). These requirements include:

• appointing an AFS licensed public company as ‘responsible entity’ to operate the scheme
• adopting a complying constitution and compliance plan for the scheme
• registering the scheme with ASIC
• preparing a Product Disclosure Statement for the scheme
• providing ongoing disclosure to members of the scheme.