Industry leaders launch ELFA to represent the commercial legal finance industry in the EU

BRUSSELS, June 30, 2022 /PRNewswire/ — The European Litigation Funders Association (“ELFA”) has been formed to serve as the European voice for the commercial litigation funding industry. With a focus on the EU, ELFA’s aim is to represent the industry to EU clients, government agencies, international organizations and trade associations, and to set good standards of practice to be promoted throughout the industry.

ELFA is founded by three leading funders with a European footprint, including Deminor, Nivalion AG and Omni Bridgeway Limited. The current administrators of ELFA are Charles Demoulin (Investment Director, Deminor); Marcel Wegmuller (co-founder and co-CEO, Nivalion AG); and Wieger Wielinga (Managing Director EMEA Omni Bridgeway), who will be the first president of ELFA. The intention of the association is to be inclusive for all professional litigation funders of greater or lesser size.

“ELFA members will be made up of professional funders active and present in the EU and are intended to include both large established funders as well as small emerging funders,” says Wielinga. “My co-founders and I saw a clear need for such a level of inclusiveness and focus on the EU. What not everyone knows is that the industry’s birthplace of legal finance is here in the EU where it was founded thirty years ago. The creation of ELFA is a natural next step in the progression of our industry. We are already in discussions with a number of interested funders who are excited to join ELFA.”

The association invites prospective members who meet ELFA’s membership criteria and adhere to the association’s code of conduct which is central to ELFA’s mandate. The code establishes and promotes high industry standards, general principles and best practices for the benefit of clients to ensure that funders follow the same institutional standards and processes that clients expect of their other funding partners.

In this regard, the States Démoulin, “The creation of ELFA underscores the maturation of the industry in the financial services community, while revealing the growing need for dispute resolution solutions.” He continues: “Fundamentally, legal funding supports the rule of law. For businesses, organizations or individuals with limited resources, litigation funding facilitates access to justice by ensuring that disputes are resolved on the merits, not on who has the biggest legal budget. funding helps restore the balance.”

Typically, a commercial legal finance provider will pay the fees and expenses associated with pursuing a claim or advance a portion of the value of the pending claim, in exchange for a portion of the judgment or award recovery. if the case is successful.

Wegmüller’s Notes,Broadening the understanding of our industry, the role we play in legal and financial contexts and the value we deliver to customers is a cornerstone of ELFA’s goal. ELFA aims to be the leading trusted resource in the EU for information, research, feedback and inquiries regarding litigation funding and commercial legal funding.”

The growth of legal finance around the world has seen the emergence of associations representing other regions and industry participants. ILFA (International Legal Finance Association) represents the largest funders with an international footprint and operations, and ALF (Association of Litigation Funders) represents funders active in England and Wales.

“With the legal finance industry created in the EU in the late 1980s and growing exponentially, particularly in recent years, it is time to organize our collective voice to ensure and promote the continued transparency of our sector. , its sound principles and its intelligent integration into EU legal forums and financial markets,” concludes Wielinga. “We are convinced that litigation funding can bring something valuable to the legal ecosystem.”

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SOURCE European Association of Litigation Funders

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