A new inquiry is to begin by the Parliamentary Joint Committee on Corporations and Financial Services into litigation funding.
Following a referral from the House of Representatives, the inquiry would examine whether current regulations surrounding Australia’s class action industry were getting fair outcomes.
It would also scrutinise proposals to allow lawyers to enter into contingency fee arrangements and the possible flow on economic consequences.
Senator James Paterson, Liberal Senator for Victoria and chair of the committee, said the inquiry would examine the system and whether regulatory change was necessary.
“I welcome this referral from the parliament. 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,” he said.
“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.”
The committee was due to report by 7 December, 2020.