Litigation Capital Management Ltd Australian Regulation of Litigation Funders (8345N)
26 Maggio 2020 - 8:01AM
UK Regulatory
TIDMLIT
RNS Number : 8345N
Litigation Capital Management Ltd
26 May 2020
26 May 2020
Litigation Capital Management Limited
(LCM or the Company)
Australian Regulation of Litigation Funders
Litigation Capital Management Limited (AIM:LIT), a leading
international provider of disputes financing solutions, notes the
announcement o n 22 May 2020 by the Federal Treasurer of Australia,
Josh Frydenberg, that litigation funders operating in Australia
will be subject to new regulation requiring them to obtain and
maintain an Australian Financial Services License (AFSL).
LCM believes it is the only litigation financier in Australia
that currently holds and maintains an AFSL. Currently the supply of
litigation finance is exempt from the requirement to hold an AFSL
and such exemption is likely to be removed by August 2020. This
places LCM in an advantageous position against its peers operating
in Australia.
As part of the new regulatory process, LCM has been asked by the
Australian Federal Government to assist in a parliamentary inquiry
into whether any further regulation of litigation finance is
required in the context of class actions, the findings and
recommendations of which will be made public. LCM has anticipated
for some time that class actions in Australia would be the subject
of further regulation and expressed its support for such an
initiative while assisting in two prior inquiries, one by the
Australian Federal Government and one by a State Government.
LCM actively manages its portfolio of investments with its
objective of spreading investment risk to ensure that no industry
sector or type of claim dominates its portfolio. Specifically, LCM
limits the number of class actions that it is prepared to invest in
depending upon the size of its overall portfolio. LCM remains
firmly focussed on the provision of disputes financing solutions in
the areas of insolvency, commercial disputes, arbitral disputes and
corporate portfolio funding.
Patrick Moloney, CEO of LCM, commented : "LCM anticipated
changes to regulation and as a result already holds an Australian
Financial Services License. LCM fully supports the move to increase
regulation in our industry. Regulation of litigation funding
insofar as it concerns class actions is something that is not only
welcomed by LCM but could provide it with a strategic advantage as
the cost and compliance issues is likely to create further barriers
to entry and restrict the numbers of financiers that can fund class
actions."
Enquiries
Litigation Capital Management c/o Alma PR
Patrick Moloney, Chief Executive
Officer
Canaccord (Nomad and Joint Tel: 020 7523 8000
Broker)
Bobbie Hilliam
Investec Bank plc (Joint Broker) Tel: 020 7597 5970
David Anderson
Alma PR Tel: 020 3405 0205
Rebecca Sanders-Hewett LCM@almapr.co.uk
Justine James
David Ison
NOTES TO EDITORS
Litigation Capital Management (LCM) is a global provider of
disputes finance which operates two business models. The first is
direct investments made from LCM's permanent balance sheet capital
and the second is fund and/or asset management. Under those two
business models, LCM currently pursues three investment strategies:
Single-case funding, Corporate portfolio funding and Acquisitions
of claims. LCM generates its revenue from both its direct
investments and also performance fees through asset management.
LCM has an unparalleled track record, driven by effective
project selection, active project management and robust risk
management.
Headquartered in Sydney, with offices in London, Singapore,
Brisbane and Melbourne, LCM listed on AIM in December 2018, trading
under the ticker LIT.
www.lcmfinance.com
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END
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