LSLA Survey Finds Overwhelming Support for ‘Further Regulation’ of Litigation Funding
As we approach the end of 2023, it is a useful time to reflect on the state of the litigation funding market in the UK and to see how prominent industry groups are thinking about the future of the industry. A preview of an upcoming survey suggests that whilst litigation funding is thriving in terms of activity and demand, there is a growing consensus that new regulations are required. An article by The Law Society Gazette provides a summary of remarks made by Nicholas Heaton, head of competition litigation at Hogan Lovells, at the London Solicitors Litigation Association’s (LSLA) annual dinner last week. Heaton was delivering a preview of the association’s Annual Litigation Trends Survey, which included some very interesting insights into the perspective of solicitors on litigation funding. According to the Gazette’s article, Heaton explained that 79% of the survey’s respondents have been involved in ‘cases in which one or more parties are using litigation funding.’ Heaton went on to note that given this frequency of funding activity, it would be natural to assume that the solicitors surveyed would regard the Supreme Court’s PACCAR decision as a ‘major concern’. However, Heaton revealed that ‘only about 10% of respondents foresee a reduction in the availability of funding or increase in its cost as a result.’ Despite this largely positive view of the third-party funding market, Heaton also said that the survey had asked respondents about their views on the potential need for increased regulation of the industry. The response from these solicitors was overwhelming, as 88% of those surveyed agreed that ‘further regulation of some kind was required for litigation funding.’
