Australian Securities and Investments Commission Credit (Litigation Funding—Exclusion) Instrument 2020/37 (Cth)

ASIC Credit (Litigation Funding—Exclusion) Instrument 2020/37

I, Grant Moodie, delegate of the Australian Securities and Investments Commission, make the following legislative instrument.

Date    17 January 2020

Grant Moodie

Contents

Part 1—Preliminary

1    Name of legislative instrument

2    Commencement

3    Authority

4    Definitions

Part 2—Exclusion

5    Litigation funding and proof of debt funding arrangements

Part 1—Preliminary

1        Name of legislative instrument

This is the ASIC Credit (Litigation Funding—Exclusion) Instrument 2020/37.

2        Commencement

This instrument commences on the day after it is registered on the Federal Register of Legislation.

Note:    The register may be accessed at Authority

This instrument is made under subsection 6(17) of the National Credit Code.

4        Definitions

In this instrument:

Code means the National Credit Code.

Note: The Code is found in Schedule 1 to the National Consumer Credit Protection Act 2009.

Part 2—Exclusion

5        Litigation funding and proof of debt funding arrangements

(1)     ASIC excludes from the application of the Code a provision of credit constituted by:

(a)     an arrangement (a litigation funding arrangement) for participating in, conducting and funding legal proceedings brought by or on behalf of a person or persons; or

(b)     an arrangement (a proof of debt funding arrangement) for proving claims made by a person or persons under Division 6 of Part 5.6 of the Corporations Act 2001 (including funding of the preparation and lodgment of the proofs).

(2)     Subsection (1) applies until 31 January 2023.