Labor to scrap class action funding regulations

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Former treasurer Josh Frydenberg’s years-long campaign to rein in class actions paid for by litigation funders is being dismantled.

Introduced in early 2020 to protect company directors during uncertain times when it was difficult to provide reliable guidance to financial markets, the changes were made permanent by Mr Frydenberg in August 2021.

At the same time it changed disclosure laws, the Coalition also removed a long-standing caveat that exempted litigation funders from holding Australian Financial Services Licenses and registering funder-backed class actions as Managed Investment Schemes . “The spectre of their operation in some sort of Bir Tawil zone [a reference to an uninhabited strip of land between Egypt and Sudan claimed by neither country] where no laws apply can be dismissed,” Justice Lee said.

 

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This is a case of Labor rewarding their supporters whether good or bad! I see the litigation funders as no more than blood suckers! They keep huge amounts of any pay out for themselves & give little (relative) of payouts to shareholders who in effect are suing themselves.

Bad move. Obviously supporting their mates who are big donors and their recruiting factories.

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