Is the approach to litigation funding in England & Wales ‘soft’, & is regulation on its way? Jason Woodland & Caroline Timoney investigate
- Regulation of litigation funding is being considered by the EU.
- The proposals would represent a significant intervention into the market were they to be adopted in England and Wales.
- The justification for that regulation is significantly less in England and Wales given the existing rules.
- The need to ensure litigation funders are well-capitalised is something all claimants looking for litigation funding should focus on, but may be an area for regulation.
The prospect of regulation of the litigation funding market is back on the horizon, this time in Europe and with an undisguised agenda. In July, the European Parliament plenary session adopted German MEP Axel Voss’s initial legislative report on responsible private funding of litigation (the Voss report). Mr Voss has previously described litigation funding as ‘happening largely in the shadows’ and that ‘…most agreements are made in secret—rendering them ripe for abuse’. It is therefore no surprise that his
