Check out my new article:
   [1]https://litigationfinancejournal.com/european-union-explores-regulat
   ion-of-third-party-funding-and-international-arbitration/

   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.”

   [2]Mondaq 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.

References

   1. https://litigationfinancejournal.com/european-union-explores-regulation-of-third-party-funding-and-international-arbitration/
   2. https://www.mondaq.com/uk/class-actions/1304252/eu-plans-to-regulate-third-party-funding-in-litigation-and-international-arbitration