Financial Services: Regulation
The question
To ask the Secretary of State for Justice, with reference to the Civil Justice Council’s review of litigation funding to strengthen protections for consumers, whether she plans to extend Financial Conduct Authority regulation to cover portfolio-based litigation funding.
Answered by Sarah Sackman
The Government welcomes the Civil Justice Council’s (CJC) review and is carefully considering all its recommendations.
As announced on 17 December 2025, the Government’s priority is to implement the CJC’s two primary recommendations: to clarify that Litigation Funding Agreements (LFAs) are not Damages-Based Agreements, and to introduce light-touch regulation of LFAs. Once this work has been completed, we will consider the CJC’s remaining recommendations, including those relating to portfolio funding, in more detail. We will provide further information in due course.
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