The Australian Securities & Investments Commission has opened consultation on extending two legislative instruments that provide regulatory relief for litigation funding arrangements, conditional costs schemes and related proof of debt arrangements to 31 March 2030. The instruments, which address arrangements not covered by exemptions in the Corporations Regulations 2001, are due to expire on 31 January 2026, and ASIC proposes an extension to maintain certainty while the Government considers its policy position. 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 for litigation funding arrangements and proof of debt arrangements. ASIC Corporations (Conditional Costs Schemes) Instrument 2020/38 provides relief from requirements in Chapter 5C (managed investment schemes) and Chapter 7 (financial services licensing and disclosure) of the Corporations Act 2001 for litigation funding arrangements where members wholly or substantially fund their legal costs under a conditional costs agreement. Feedback is requested under Consultation Paper CS 31, with submissions due by 5pm AEDT on 14 November 2025.
Australian Securities & Investments Commission 2025-10-20
Australian Securities & Investments Commission consults on extending litigation funding and conditional costs relief to 31 March 2030
The Australian Securities & Investments Commission (ASIC) is consulting on extending two legislative instruments providing regulatory relief for litigation funding arrangements, conditional costs schemes, and related proof of debt arrangements until 31 March 2030. These instruments, expiring on 31 January 2026, offer relief from certain requirements under the National Consumer Credit Protection Act 2009 and the Corporations Act 2001. The extension aims to maintain certainty while the Government reviews its policy position.