ASIC is extending the operation of two instruments related to litigation funding until 31 January 2029.
ASIC Credit (Litigation Funding-Exclusion) Instrument 2020/37 and ASIC Corporations (Conditional Costs Schemes) Instrument 2020/38 (the Instruments) provide relief for litigation funding arrangements, conditional costs schemes and proof of debt arrangements not covered by exemptions in the Corporations Regulations 2001.
ASIC has issued ASIC Corporations & Credit (Amendment) Instrument 2025/809 to extend the operation of the Instruments until 31 January 2029.
The extension will provide certainty for litigation funders, lawyers. and members of litigation funding and proof of debt funding arrangements while the Government considers its policy position for these arrangements.
We consulted on our proposal to extend the operation of the Instruments in CS 31 Proposed extension of relief for litigation funding arrangements and conditional costs schemes and received two submissions in support of this.
Background
ASIC Credit (Litigation Funding-Exclusion) Instrument 2020/37 provides relief from the application of the National Credit Code in Schedule 1 to the National Consumer Credit Protection Act 2009 to litigation funding arrangements and proof of debt arrangements.
ASIC Corporations (Conditional Costs Schemes) Instrument 2020/38 provides relief from the requirements in Chapter 5C (managed investment schemes) and Chapter 7 (financial services licensing and disclosure) of the Corporations Act 2001 to litigation funding arrangements where the members wholly or substantially fund their legal costs under a conditional costs agreement.
Prior to ASIC making ASIC Corporations & Credit (Amendment) Instrument 2025/809, the Instruments were due expire on 31 January 2026.
Related Links
- CS 31 Proposed extension of relief for litigation funding arrangements and conditional costs schemes
- ASIC consults on extending relief for litigation funding arrangements and conditional costs schemes
- ASIC Corporations & Credit (Amendment) Instrument 2025/809
- ASIC Credit (Litigation Funding-Exclusion) Instrument 2020/37
- ASIC Corporations (Conditional Costs Schemes) Instrument 2020/38
