The future of litigation funding and class actions in Australia

The federal government has recently announced a range of measures to deal with the criticisms surrounding the litigation funding and class action regimes in Australia.

Two weeks ago, it gave the green light for a parliamentary inquiry (first foreshadowed in December 2019) to proceed. Last week, it determined that litigation funders should be subject to scrutiny by ASIC in requiring them to hold an Australian Financial Services Licence (AFSL) and, if necessary, comply with managed investment scheme rules.

Additionally, this week, the government has provided company directors and executives with a six-month reprieve, with adjustments to the continuous disclosure obligations under the Corporations Act.