Litigation funding - transitional relief extended until 30 September 2012

In brief - ASIC has extended the transitional relief granted by class order [CO 10/333]

ASIC has registered class order [ CO 12/158] to amend and thereby extend the effective date of class order [CO 10/333] to 30 September 2012. This extension gives more time for passing the proposed Corporations Amendment Regulations.

The need for transitional relief

In our recent article Recent developments in litigation funding in Australia and the UK, we reported on the transitional relief granted by ASIC to lawyers and litigation funders involved in legal proceedings structured as funded class actions.

This relief was to overcome the managed investment scheme (MIS) provisions of the Corporations Act 2001 (Cth) which had been held by the full Federal Court of Australia to apply to such actions.