header-logo header-logo

Funding justice, not failure

12 September 2025 / Geoff Dover
Issue: 8130 / Categories: Features , Profession , Litigation funding
printer mail-detail
Litigation funding must be ethical, transparent & aligned with the interests of those it is meant to serve: Geoff Dover sets out a better way forward
  • Recent high-profile law firm collapses have exposed structural and ethical failings in legal funding and litigation finance.
  • Law firms and funders must adopt transparent, aligned and sustainable funding models to rebuild trust.

The collapse of more than 15 consumer claims law firms in the past five years, including SSB Law and Pure Legal, has sent shockwaves through the sector. With over £400m in unpaid debts left in their wake, the damage has been financial, reputational and systemic. While litigation funding is under scrutiny—this summer’s Civil Justice Council working party report and its recommendations for tighter rules and Financial Conduct Authority registration for funders being the latest attempt to set a better path—the more pressing issue lies in the operational failures and incentives that led to such collapses.

To suggest that legal finance is inherently problematic would be a mistake. Funding remains a vital component

If you are not a subscriber, subscribe now to read this content
If you are already a subscriber sign in
...or Register for two weeks' free access to subscriber content

MOVERS & SHAKERS

Slater Heelis—Oliver Banks

Slater Heelis—Oliver Banks

Manchester firm strengthens Court of Protection expertise with partner hire

Talbots Law—Sara Pickerin & Nicholas Playford

Talbots Law—Sara Pickerin & Nicholas Playford

Agricultural law team expands with senior director appointments

Kingsley Napley—Claire Green

Kingsley Napley—Claire Green

Firm announces appointment of chief legal officer

NEWS
NLJ columnist Stephen Gold dives into the quirks of civil practice, from the Court of Appeal’s fierce defence of form N510 to fresh reminders about compliance and interest claims, in this week's Civil Way
Mazur v Charles Russell Speechlys [2025] EWHC 2341 (KB) has restated a fundamental truth, writes John Gould, chair of Russell-Cooke, in this week's NLJ: only authorised persons can conduct litigation. The decision sparked alarm, but Gould stresses it merely confirms the Legal Services Act 2007
The government’s decision to make the Financial Conduct Authority (FCA) the Single Professional Services Supervisor marks a watershed in the UK’s fight against money laundering, says Rebecca Hughes of Corker Binning in this week's NLJ. The FCA will now oversee 60,000 firms across legal and accountancy sectors—a massive expansion of remit that raises questions over resources and readiness 
The High Court's decision in Parfitt v Jones [2025] EWHC 1552 (Ch) provided a striking reminder of the need to instruct the right expert in retrospective capacity assessments, says Ann Stanyer of Wedlake Bell in NLJ this week
Paige Coulter of Quinn Emanuel reports on the UK’s first statutory definition of SLAPPs under the Economic Crime and Corporate Transparency Act 2023in NLJ this week
back-to-top-scroll