John Hyde of the Law Society Gazette recently gave a useful update on the issue of statutory regulation in relation to third party litigation funding. You can access his short article by following this link.
I personally think that this is a very interesting topic/debate. As I understand the position, the government is wary of imposing statutory regulation at this moment in time as it is concerned that it could stifle the funders who are currently in the litigation funding marketplace and deter any new entrants. In light of the substantial funding changes post LASPO, it is important not to make any changes which could impact on access to justice. There is currently a voluntary code of conduct in place and optional membership of the Association of Litigation Funders (http://associationoflitigationfunders.com/), but is this enough?
Third party funders can earn substantial amounts from successful cases and therefore surely some form of regulation should be introduced to ensure that both individual and corporate purchasers of third party funding are protected.
What are your thoughts in relation to this topic? Would you regulate the area now or would you give the area time to develop and then look to regulate in due course? My view is the latter.
I await your comments with interest.
This blog was prepared by Andrew McAulay is who a Partner and the Head of the Costs and Litigation Funding Team at Clarion. Andrew can be contacted on 0113 336 3334 or at andrew.mcaulay@clarionsolicitors.com
