New regulations have come into effect to support access to justice for class action plaintiffs.
Third-party litigation funding is a critical source of funding for class actions plaintiffs.
In August 2020, the former government reversed longstanding regulatory exemptions for third‑party litigation funders.
Removing the exemptions increased the regulatory burden for funders, ultimately making it more difficult for class action plaintiffs to access funding and have their day in court.
From today these regulations reinstate those longstanding exemptions from the managed investment scheme, Australian Financial Services Licence and related corporate regulatory regimes for third‑party litigation funders.
The Government continues to consider the recommendations of the Australian Law Reform Commission, with a view to ensuring the system produces fair and reasonable outcomes in class action proceedings.
