Litigation funding - legislative relief arrives

In brief - Corporations Regulations 2001 amended

On 12 July 2012, the Governor General made Corporations Amendment Regulation 2012 (No. 6) (Amending Regulation) under the Corporations Act 2001 (Act) which amended the Corporations Regulations 2001 (Regulations) to exclude litigation funding schemes and similar arrangements from the definition of managed investment schemes (MIS) in the Act.

The need for amendment to the Act and Regulations

Earlier this year, our articles Recent developments in litigation funding in Australia and the UK and Litigation funding - transitional relief extended until 30 September 2012 dealt with ASIC's response to the effect of the full Federal Court of Australia's decision in the Brookfield Multiplex case, which held that the MIS provisions of the Act apply to such actions.