The Finance & Leasing Association (FLA) has welcomed proposals from the Solicitors Regulation Authority (SRA) to strengthen consumer protections around third-party litigation funding, but says the Government must go further by bringing commercial litigation funders within the scope of Financial Conduct Authority (FCA) regulation.
The FLA’s response to the SRA consultation says regulating solicitors is a positive step, but will not address the wider risks in the litigation funding market. A consistent regulatory framework is needed across the market to promote good practice, improve transparency and protect consumers.
The FLA is calling for:
- Stronger professional conduct requirements for solicitors involved in litigation funding.
- FCA regulation of commercial third-party litigation funders, beginning with anti-money laundering supervision.
- Greater transparency and disclosure so consumers understand how litigation funding arrangements work.
The FLA also calls for closer coordination between the SRA, FCA, Information Commissioner’s Office and Ministry of Justice to ensure a consistent approach across the wider claims ecosystem.
Notes to Editors
- In 2025, FLA members provided £163 billion of new finance to UK businesses and households, £122 billion was in the form of consumer credit, accounting for almost a third of all new consumer credit written in the UK. £55 billion of it supported the purchase of new and used cars, including over 85% of private new car registrations
- For media enquiries, please contact the FLA press office on 020 7420 9656.
