Omni Bridgeway CEO Andrew Saker Responds to Proposed Statutory Price Cap

An opinion piece in the latest edition of The Law Society Gazette magazine sees Rachel Rothwell explore the question of whether litigation funders should be worried about the upcoming Civil Justice Council (CJC) review of third-party funding in the UK. 

As Rothwell points out in her introduction, the CJC review is unlikely to see the prolonged timelines of similar reviews we have seen abroad, as the CJC has been tasked to deliver its final report by the summer of 2025. She also suggests that the CJC “will not be starting from scratch”, given that one of the working group’s members, Mrs Justice Cockerill, has a pre-existing involvement in an ongoing research project looking at this topic for the European Law Institute (ELI).

Regarding the issue of whether the CJC review will recommend statutory regulation of the litigation funding industry, Rothwell suggests that whilst there is a member of the Financial Conduct Authority on the review’s working group, “the FCA has so far shown no appetite for that onerous task.” Furthermore, Rothwell reveals that the current draft version of the report from ELI “concludes that statutory regulation would not be the right approach.”

Rothwell also explores other issues that the CJC review may consider, from a greater level of self-regulation through industry associations or the potential of imposing a cap on funder’s returns. However, Rothwell concludes that as we currently look at the review “it is particularly encouraging that it is already drawing together a broader consultation group” and that we can expect its recommendations “to be considered, comprehensive and workable.”

An article in Iberian Lawyer provides coverage of the OPEN FEST of Arbitration event in Madrid, which included a panel discussion on investment arbitration and the use of third-party funding in these disputes. The panel was moderated by Claudia Frutos-Peterson from Curtis, Mallet-Prevost, Colt & Mosle, and featured insights from Cristina Soler, CEO of Ramco; José Julio Figueroa, General Counsel of Acciona; Carlos Gutiérrez García, Litigation Director at Siemens Gamesa; and Ignacio Del Cuvillo, Director of Legal Corporate Services & Finances at Repsol.

The panel discussion highlighted the gradually increased use of third-party funding in this area, citing the Global Arbitration Review (GAR) 100 annual survey which found the number of funded arbitrations had risen from 198 in 2022, to 208 in 2023. The lengthy timelines and high costs involved in these disputes was raised as a key incentive for the use of third-party funding, with Figueroa explaining that “conflicts between foreign investors and host states involve significant strategic, geopolitical, and economic interests, with prolonged and uncertain execution periods.”

Speaking from the funder’s perspective, Ramco’s Cristina Soler discussed the value that a funder can bring beyond its financial resources, such as the firm’s experience in navigating these disputes and building a viable strategy for both the arbitration and any award enforcement or collection issues that may arise.