Good report from Australian lawyers weekly and about time too….
New changes would strengthen existing “light-touch” regulation as calls were affirmed to curb litigation funding with ASIC vowing to make new litigation funding rules work.
Deputy ASIC chair Daniel Crennan, QC, appearing before the parliamentary committee on corporations and financial services on Wednesday, said that managed investment schemes (MIS) may not achieve the outcomes being sought.
“There is considerable interest in the fees and profit margins of litigation funders and the risk of financial default,” Mr Crennan told the inquiry.
“However, the financial services licensing and managed investment scheme regimes do not extend to price or prudential regulation.”
Herbert Smith Freehills class action partners Christine Tran and Jason Betts told Lawyers Weekly that these changes are substantial and not merely procedural.
“While they won’t radically change the class action regime, they will have an impact on the Australian funding market,” Ms Tran said.
