header-logo header-logo

11 November 2022 / Roger Smith
Issue: 8002 / Categories: Opinion , Litigation funding , Regulatory
printer mail-detail

Third-party funding—regulation needed?

100256
It’s time to acknowledge that law, justice & the courts are being commoditised, says Roger Smith

Surprise, surprise. Third-party litigation funders and their associated lawyers are not too keen on regulatory proposals proceeding through the European Union (see ’Tough enough?’, NLJ, 21 October 2022, p20). The proposals were backed in September by the European Parliament. Brexit was, of course, intended to protect the UK from this sort of outrageous intrusion by the ‘nanny state’. But, even here and in the US, EU backing for statements such as ‘When litigation funders provide financing for legal proceedings in exchange for a share of any compensation awarded, a risk of injustice can arise’ might give rise to a chilling effect on a rapidly burgeoning market. Hence, the concern.

Heavyweight considerations

Third-party litigation funding has rather crept up on us. Lawyers are still practising (just) for whom the old prohibitions on maintenance and champerty formed part of their qualifying legal education. These were only abolished in 1967 after 500 years. Subsequent progress has been

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

NLJ Career Profile: Stephen Ward, The Barrister Group

NLJ Career Profile: Stephen Ward, The Barrister Group

From mowing lawns to life at the Bar: Stephen Ward reflects on an unconventional career

Clarke Willmott—Ben Loosemore

Clarke Willmott—Ben Loosemore

Commercial property partner joins Clarke Willmott in Southampton

Ellisons—Robert Tiffen

Ellisons—Robert Tiffen

Robert Tiffen joins Ellisons as Partner in growing Norwich office

NEWS
The Law Society RFC Festival of Sport returns next month, bringing together legal and financial services professionals for one of the sector’s largest annual sporting events
Legal aid deserts leave almost one in four without adequate access to justice
The Solicitors Regulation Authority (SRA) has warned solicitors and law firms that using artificial intelligence does not alter their professional obligations, amid concerns over inaccurate legal material and client confidentiality
From forgotten interest claims to case-management appeals, a string of procedural developments offers useful—and occasionally cautionary—lessons for practitioners

Jonathan Fisher KC highlights that it now accounts for around 40% of criminal offences, with roughly 70% involving technology, and argues that the UK cannot simply prosecute its way out of the problem. Detection, investigation and prosecution all require improvement, while different fraud types demand tailored responses.

back-to-top-scroll