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Litigation Funding under CJC Review: Split on FCA Regulation, Caps on Funders’ Returns, and Post-PACCAR Reform in England and Wales

Published on: 12 March 2025

Published by a Law360 reporter
Legal News
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Article summary

A lengthy review by the Civil Justice Council (CJC) — the body advising government and the judiciary on civil justice and procedure across England and Wales — will consider whether the sector requires tighter oversight than now. It will also explore if funders’ profits ought to be limited, and whether changes in statute should be brought forward. The final report, anticipated in the summer of 2025, may trigger a profound shift across the litigation‑funding market indeed. Here, Law360 sets out the principal themes now clearly emerging.

Regulation splits opinion

Litigation funders currently self‑police under the Association of Litigation Funders’ code of conduct. Yet views on extending this to formal regulation remain sharply divided today. Moreover, the sector’s expanding scale, coupled with several recent high‑profile cases, has significantly heightened scrutiny. The Legal Services Board, which supervises lawyer regulation in England and Wales, proposes that the Financial Conduct Authority (FCA) should intervene and regulate litigation funders so as to safeguard consumers. Engagement with the present voluntary regime is limited—only 16 of an estimated 44 funders active currently in England and Wales belong to their industry association...

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