Consultation Statement 31 Proposed extension of relief for litigation funding arrangements and conditional costs schemes (CS 31)
Submission Date: 13 November 2025
This submission is made by the Financial Services Committee of the Business Law Section of the Law Council of Australia (the Committee) in response to CS 31, which was issued by the Australian Securities and Investments Commission (ASIC) on 20 October 2025.
Background
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 (Cth) to litigation funding arrangements and proof of debt arrangements.
ASIC Corporations (Conditional Costs Schemes) Instrument 2020/38 provides relief from the requirements in Chapter 5C (managed investment schemes) and Chapter 7 (financial services licensing and disclosure) of the Corporations Act 2001 (Cth) to litigation funding arrangements where the members wholly or substantially fund their legal costs under a conditional costs agreement.
Each of these instruments (together, the Litigation Funding Instruments) is due to expire on 31 January 2026. In CS 31 ASIC, announced a proposal to extend the operation of each of the Litigation Funding Instruments until 31 March 2030, to provide certainty for litigation funders, lawyers and members of litigation funding and proof of debt funding arrangements whilst the Government considers its policy position for these arrangements.
Last Updated on 18/11/2025
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