SRA outlines specific regulation for law firms using litigation funding

The SRA has outlined proposed new rules for law firms using litigation funding, imposing requirements including having to provide clients with a ‘funding information document’ in a prescribed form and keep a ‘funding risk assessment’. More from Legal Futures and The Law Gazette.

In a LinkedIn post, Gian Kull of Legal Asset Servicing describes the rules as “telling law firms to start interrogating their funders”, and explains that, under the new rules, firms would be expected to assess a funder's capital adequacy and liquidity before signing an agreement, gather evidence of funding history and credit standing, monitor that relationship on an ongoing basis, and keep an audit trail showing how the money was used and that the firm's independence was never compromised. Read more.