Check out my new article: https://litigationfinancejournal.com/european-union-explores-regulation-of-t... As litigation finance continues to expand worldwide, political factions look to regulate the sector. New guidance from the European Parliament aims to foster “responsible private funding of litigation.” Mondaq <https://www.mondaq.com/uk/class-actions/1304252/eu-plans-to-regulate-third-party-funding-in-litigation-and-international-arbitration>reports that the European Union aims to create an independent supervision body to regulate third party funding activities, creating universal terms and conditions for litigation finance in Europe. The overarching premise is that EU funders who sponsor agreements may be on the hook for adverse effects related to the litigation. The directive also looks to ensure that litigation investors have enough liquidity available to support both their enterprise and their litigation finance agreements, proven on an annual basis. Transparency is central to the EU directive, along with capping potential litigation funder awards at 40%. If litigation funders look to meddle in the decision of a case, the directive’s oversight body may elect to terminate the litigation funding agreement. The European Commission is debating the incorporation of these rules. Further scrutiny will be applied by the European Parliament and European Council. Ultimately, each member state of Europe will need to ratify the rules before they can be enforced.