Are litigation funders regulated and can they be trusted?

Dec 12, 2020

More and more investors are placing funds into the fast-growing sector of litigation funding. New providers are emerging constantly, and it really is becoming a sector to watch. Even the Courts are acknowledging the value provided by funders in supporting access to justice.

However, litigation funding is still relatively unknown and to some can look like muddy waters. This is why we have put together a series of blog posts that break the myths around litigation finance and litigation funding.

Some people believe that litigation funders are unregulated and cannot be trusted. However, this isn’t entirely the case. The government recently stated that the case has yet to be made for bringing in statutory regulations for third party litigation funders, like Apex Litigation Finance, for example.

That said, The Association of Litigation Funders, also known as ‘ALF’, has a voluntary code of conduct for its members. However, membership is not mandatory, at this time, and the majority of funders have chosen not to become members. Instead they rely on the terms of their Litigations Funding Agreement to provide comfort and protection to the claimant.

Here at Apex Litigation Finance, we have chosen comply with code of conduct. We have done this to give our claimants complete peace of mind that they and their claim are safe with us. We also have strong Litigation Funding Agreements in place to offer our claimants that next level of comfort and protection.

When choosing to work with a litigation funder to support your claim, we would always recommend that you seek the advice of your legal team as to the professionalism and working practices of the funder.

If you need a third party to provide the financial resources you require to enable litigation or arbitration cases to proceed, contact our team now. We are an established litigation funder, with a track record of supporting access to justice and can be trusted with your claim.

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