THE Parliamentary Joint Committee on Corporations and Financial Services will begin a new inquiry into litigation funding, following a referral from the House of Representatives today.
The committee has been asked to examine whether current regulations surrounding Australia’s growing class action industry is impacting fair and equitable outcomes for plaintiffs.
The committee will also scrutinise proposals to allow lawyers to enter into contingency fee arrangements, currently being considered by the Victorian Parliament, and the flow on consequences for the Australian economy of these trends.
“I welcome this referral from the Parliament," Parliamentary Joint Committee on Corporations and Financial Services Chair, Senator James Paterson said.
"It’s vitally important that our legal system delivers justice to those who deserve it. It does not exist to benefit lawyers or others seeking to profit from it.
“Any recommendations made by the committee will be guided by evidence. This inquiry is an opportunity to provide greater public transparency into how the litigation funding business model works and to assess whether regulatory change is necessary,” Senator Paterson said..
The committee will soon open submissions and wwill take evidence from all stakeholders.
Public hearings will be scheduled and the committee will report by December 7, 2020.