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28.05.2020

News

Litigation funders now need an AFS licence

Following a Morrison Government announcement on 22 May 2020, litigation funders will soon face the same regulatory scrutiny as other financial service and product providers. While currently exempt, the announcement means litigation funders will need to apply for an AFS licence (AFSL) from ASIC and comply with the managed investment scheme regime contained in the Corporations Act. The amendments to the Corporations Regulations are expected to take effect in three months from the date of the announcement. It is important litigation funders consider the proposed application of the AFSL regime to their business and prepare to apply for an AFSL and compliance with the statutory regime. Please contact partner Elliott Stumm or a member of our Funds Management team if you have any questions about the application of the AFSL regime to your business.


Authors

Elliott Stumm

Elliott Stumm

Partner

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