In an op-ed published this week, Baroness Bowles of Berkhamsted argues that mass consumer claims funded through complex investment structures pose different and unique risks from the funding of individual commercial disputes. Her amendment to the Financial Services and Markets Bill calls for such funding to be brought under the regulatory perimeter of the FCA.
These claims, often funded by unfettered capital, facilitate bad actors and put British growth and consumers at risk. A key example of the associated harms, is the collapse of Woodville Consultants which raised millions of pounds through unregulated loan notes and then went into administration, leaving investors in limbo.
Baroness Bowles’ op-ed concludes with a warning that “Britain benefits enormously from being seen as a serious and well regulated place in which to invest and do business. Allowing a rapidly evolving financial market connected directly to our courts and consumers to sit in a regulatory grey area sends precisely the wrong signal.”
Please read the full op-ed here: https://www.law.com/international-edition/2026/09/09/why-i-have-tabled-a-new-amendment-on-litigation-funding/
Seema Kennedy, FCJ Executive Director, was featured in reporting on the amendment.
Baroness Bowles’s amendment is a sensible and proportionate step towards closing a clear regulatory gap. Litigation funders can deploy significant capital into high-volume consumer claims while sitting outside the direct financial oversight applied to other actors in the claims ecosystem. With the FCA itself raising concerns about complex funding structures, financial resilience and conflicts of interest, Parliament should now ensure that the financial side of this market is subject to proper scrutiny.
Read the full piece here: https://www.lawgazette.co.uk/news/parliament-offered-chance-to-bring-forward-litigation-funding-regulation/5127869.article
