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EU rules out new regulation of third-party litigation funding; focus shifts to monitoring implementation of the Representative Actions Directive

Published on: 25 November 2025

Published by a Law360 reporter
Legal News
Article summary

On 18 November, European Commissioner for Justice Michael McGrath said he had heard industry feedback and concluded the EU need not impose rules on third‑party funding. Instead, Europe would centre efforts on implementing EU legislation that brings in a pathway for consumer class actions throughout the bloc, rather than drafting further regulatory measures at present. He explained that, based on that input, the Commission would give priority to overseeing how the Representative Actions Directive is applied in consumer collective redress, speaking at the closing session of the EU’s high‑level forum on justice for growth. On 20 November 2025, Paul Kong, executive director of the International Legal Finance Association (ILFA), welcomed McGrath’s unequivocal indication that regulation of third‑party litigation finance at EU level is not envisaged. He added that this seemed to shut down any discussion about fresh rules, which, in his view, lacked any evidential basis...

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