Towards an EU regulatory framework on Third-Party Litigation Funding (TPLF)

As third-party litigation funding (TPLF) rapidly expands across Europe, the European Justice Forum has released a new policy brief outlining a clear way forward: a harmonised EU regulatory framework to safeguard judicial systems, protect consumers and businesses, and support the EU’s economic resilience and competitiveness.

Building on international best practices and independent research, the paper presents a balanced, four-pillar approach to contribute to the policy debate on how to best regulate TPLF:

1. Transparency: Mandatory disclosure of funders, funding sources, and redacted agreements to all parties, with unredacted versions to courts. Funders should be subject to authorisation, registration, and supervision.
2. Protection of claimants’ rights: joint liability for adverse costs, minimum capital requirements, no funder control over case strategy or outcomes, and minimum payouts to claimants with caps on funder and intermediary fees.
3. Ethical standards: Prohibition of funding arrangements with conflicts of interest, and fiduciary duties requiring funders to act in the best interests of claimants/beneficiaries.
4. Harmonized regulatory framework: Consistent application of these rules across all mass litigation and arbitration to prevent circumvention and ensure legal certainty in the EU.

These recommendations reflect growing political momentum, supported by the European Parliament’s 2022 resolution and calls from European industry groups, and are grounded in recent research by ECIPE, the European Law Institute , and EJF itself.

Ultimately, EJF’s brief underscores that responsible regulation can both protect consumers and judicial integrity and preserve Europe’s legal and economic systems. By acting now, the EU can set a global standard for litigation funding that strengthens, rather than compromises, access to justice.

Read the full policy brief below.

• EJF TPLF Policy Brief - May 2025.pdf (137.8 KiB)