TRANSFORMING THIRD-PARTY FUNDING UNDER THE ILFA
Third-party litigation funding is an arrangement that generally has question marks hovering over it. Suspicions can arise from a perceived lack of transparency around the identity of the funders and the terms under which they were engaged.
In an attempt to reduce opacity, a new international trade body, the International Legal Finance Association (ILFA) – led by six founding members, Burford Capital, Harbour Litigation Funding, Longford Capital Management, Therium Capital Management, Woodsford Litigation Funding and Omni Bridgeway – has been launched.
The ILFA’s stated intention is to be the global voice of the commercial legal finance industry, representing its interests before governmental bodies, international organisations and professional associations, with an emphasis on research and education about the uses of funding, and promoting industry-wide best practice.
“The ILFA is a non-profit trade organisation with prominent commercial legal funders among its members,” says Stephen Downie, a partner at Francis Wilks & Jones. “As an independent association, it seeks to support the maturing third-party funding industry by providing independent commentary, input to changes that can benefit access to justice, and by removing judicial and public scepticism. It will also provide governments with the expertise to develop associated legal and regulatory aspects to enable access to justice.”
While its advocates are in no doubt that the ILFA fulfils a need for a cohesive, coordinated and well-funded industry body that can engage in lobbying and education on the benefits of legal finance, prior to the introduction of the association, this was an aspiration that had been consistently opposed by a number of well-heeled institutions.
Jan-Mar 2021 issue
Fraser Tennant