Omni Bridgeway was pleased to contribute to the response by ILFA to the proposed draft Directive on the regulation of third-party litigation funding in the EU. ILFA considers that the draft Directive is discriminatory, unnecessary and overburdensome.
ILFA (International Legal Finance Association) is a non-profit global trade association that promotes the highest standards of operation and service for the commercial legal finance sector. As set out on ILFA’s website, its mission is to engage, educate and influence legislative, regulatory and judicial landscapes as the global voice of the commercial legal finance industry.
The draft directive was contained in a report presented by an individual MEP to the European Parliament Committee on Legal Affairs in June 2021. ILFA’s response clarified misunderstandings and incorrect assumptions about third-party litigation funding in the report. ILFA informed the European Commission about the funding process and the importance of third-party litigation funding which has been widely recognised, both at EU and Member State level.
In September 2022, the EU Parliament approved an amended version of the report. The EU Parliament has requested the European Commission to propose a directive after 25 June 2023, following which, if enacted, Member States would have time to implement the Directive in their domestic law. Following the EU Parliament approval, ILFA announced that it “looks forward to continued collaboration with Parliament, European Commission, and Council of the European Union and individual member states to ensure future initiatives are fully informed by current and accurate data on the litigation funding industry in Europe and its positive impacts on justice systems around the world."