The Corporations Amendment (Improving Outcomes for Litigation Funding Participants) Bill 2021 lapsed on 25 July 2022 (see link below).
The bill was going to amend Chapter 5C of the Corporations Act 2001 (Cth) to establish a new class action-specific managed investment scheme.
The class action litigation funding scheme was put forward in response to an inquiry conducted by the Australian Law Reform Commission into third-party litigation funders and the adequacy of existing regulations in respect of the distribution of class action proceeds. The amendments set out in the bill included court approval for the fair and reasonable distribution of claim proceeds.
Now that the bill is not proceeding, it will be interesting to see what law reform is proposed by the Commonwealth Government and how the issue of managed investment schemes and litigation funding is dealt with moving forward.
See https://www.aph.gov.au/Parliamentary_Business/Bills_Legislation/Bills_Search_Results/Result?bId=r6802