Submission: Exemptions for litigation funding schemes
ARITA has made a submission in the response to the exposure draft regulations and explanatory statement which propose changes to the regulation of litigation funding schemes under the Corporations Act 2001.
The submission considers whether the proposed amendments address the concerns that were raised by ARITA with Treasury during 2020 following the commencement of the Corporations Amendment (Litigation Funding) Regulations 2020 and noted our concern that litigation funding arrangements are currently only excluded from the application of the National Credit Code due to temporary relief granted by ASIC, that has been in operation since 2013 and is due to expire on 31 January 2023.
Consistent with the proposals made by the Australian Law Reform Commission as part of its current review of the Legislative Framework for Corporations and Financial Services Regulation, ARITA's view is that legislation should, wherever possible, be complete and standalone, and not reliant on instruments issued at the discretion of the Regulator in order to function how intended.
Treasury: Exemptions for litigation funding schemes
Read ARITA's submission