The Global Legal Post calls for statutory oversight of the United Kingdom’s third-party litigation funding industry in order to prevent abuse, ensure transparency, and avoid conflicts of interest:
“[Last year], I suggested that government regulation of funders was necessary to provide appropriate safeguards for both claimants and defendants, and to assure the continued integrity of the civil justice system.
“Sadly, none of these problems have changed over the course of the last twelve months. Indeed, if anything, the passage of another year has only strengthened the case for an oversight regime.”
Litigation funding is a large industry (worth £ 1 billion), and it’s not going away. The funders currently self-police through a code-of-conduct from a voluntary organization. If it is to remain a responsible actor in the legal system, writes the GLP, stronger safeguards must be applied to the industry.