In response to a series of questions regarding the regulation of the litigation funding industry, the Government conclude a present lack of need for further assessment.
Despite its proliferation over the past decade, the market for litigation funding remains largely unregulated in England and Wales with only seven funds having signed up to the Association of Litigation Funders (ALF), the independent body charged with the self-regulation of litigation funding in England and Wales.
Four years after the creation of the ALF and the publication of the Code of Conduct for Litigation Funders, the questions posed by Lord Hodgson of Astley Abbotts concerning the need for review of the self-regulated industry have sparked no backlash from Government.
Indeed, in response to Lord Hodgson’s questions, Lord Keen of Elie stated that the Government is neither swayed by the need to move away from the voluntary regulation scheme, nor is it “aware of specific concerns about the activities of litigation funders”.
Although Lord Keene expressed that the Government see no such need to regulate or investigate the funding industry further, they are prepared to do so “should the need arise”. 
Comment from TheJudge:
As a broker with relationships with over 20 litigation funders around the world, we can say with some confidence that the existence of ALF and market competition does appear to be delivering suitable self-regulation. Funders do not only compete on price but also the fairness of their agreements. Demonstrating the availability of funds, providing simple language funding agreements, including reasonable dispute resolutions provisions for independent scrutiny of funder’s decisions are all commonly adopted by the vast majority of funders. To do otherwise would put the fund at a disadvantage with their competitors. While a significant number of funders are not members of ALF they nonetheless are keen to demonstrate they adopt similar standards of fairness and transparency.
Tanya Lansky, Associate
 See: http://www.parliament.uk/business/publications/written-questions-answers-statements/written-question/Lords/2016-12-19/HL4213/ ; http://www.parliament.uk/business/publications/written-questions-answers-statements/written-question/Lords/2016-12-19/HL4214/ ; and http://www.parliament.uk/business/publications/written-questions-answers-statements/written-question/Lords/2016-12-19/HL4216/