Government intervention on funding regulations welcomed

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MIS / AFSL Regulations

On 2 September 2022 the federal government announced that it was consulting on draft Corporations Amendment (Litigation Funding) Regulations 2022, which propose changes to the regulation of ‘litigation funding schemes’ under the Corporations Act 2001 (Cth). Specifically, the purpose of the draft regulations is to amend the Corporations Regulations 2001 (Cth) to provide ‘litigation funding schemes’ with an explicit exemption from the managed investment scheme, Australian Financial Services Licence, product disclosure and antihawking provisions of the Corporations Act (i.e. to reverse the reforms made by the previous government). Submissions on the draft regulations closed on 30 September 2022.