At a recent symposium, ILR consultant Mary Terzino said a voluntary code of conduct for litigation funders is insufficient. The Law Society Gazette reports:
Terzino said the need was now greater than ever to ditch the voluntary code set up in 2011 and protect clients whose cases are funded by third parties…
‘The voluntary code of conduct carries a lot of important safeguards but the only penalty for a breach is to be removed from the Association of Litigation Funders – it is completely toothless for those who are not members.’
In October, ILR released a paper that addresses the lack of regulation of third-party litigation financing in Australia. The paper, authored by Moira Saville of King & Wood Mallesons, says increased oversight of funders is needed to prevent conflicts of interest where a lawyer’s loyalty would be divided between the client and a funder.
Read the full paper here.