On 17 June 2021, the Legal Affairs Committee of the European Parliament issued a Draft Report with recommendations to the European Commission on Responsible private funding of litigation.[1] The report also includes a proposal for a directive on responsible private funding of litigation. The Legal Affairs Committee proposes, amongst other things, to establish a system of authorisation for litigation funders to ensure that funding is only provided by entities that are committed to complying with minimum standards in terms of transparency, governance and capital adequacy.

[1] The Legal Affairs Committee, European Parliamentary Research Service, Responsible private funding of litigation. European added value assessment, 17 June 2021.