The Australian Securities & Investments Commission (ASIC) has extended the operation of two relief instruments for litigation funding arrangements, conditional costs schemes and proof of debt arrangements that are not covered by exemptions in the Corporations Regulations 2001. The extension, made via an amending instrument, keeps the relief in place until 31 January 2029 and is intended to provide regulatory certainty while the Government considers its policy position for these arrangements. ASIC Credit (Litigation Funding-Exclusion) Instrument 2020/37 continues to provide relief from the National Credit Code in Schedule 1 to the National Consumer Credit Protection Act 2009 for litigation funding and proof of debt arrangements. ASIC Corporations (Conditional Costs Schemes) Instrument 2020/38 continues to provide relief from the managed investment scheme requirements in Chapter 5C and the financial services licensing and disclosure requirements in Chapter 7 of the Corporations Act 2001 for litigation funding arrangements where members wholly or substantially fund legal costs under a conditional costs agreement. The instruments had been due to expire on 31 January 2026, and ASIC’s consultation (CS 31) received two submissions supporting the extension.
Australian Securities & Investments Commission 2025-12-17
Australian Securities & Investments Commission extends litigation funding and conditional costs scheme relief until 31 January 2029
The Australian Securities & Investments Commission (ASIC) has extended two relief instruments for litigation funding, conditional costs schemes, and proof of debt arrangements until 31 January 2029. This extension, via an amending instrument, aims to provide regulatory certainty while the Government reviews its policy. The relief exempts these arrangements from certain requirements under the National Consumer Credit Protection Act 2009 and the Corporations Act 2001.