The Federal Government will consult on “complex issues” raised in an Australian Law Reform Commission (ALRC) report proposing changes to the class action regime.

“The report is expected to stimulate debate among consumer advocates, the legal profession, the business sector and across the wider community on the issues raised,” Acting Attorney-General Greg Hunt said.

“The Government will further engage with key stakeholders in developing its response to the report, to ensure the class actions regime provides just and effective outcomes for all Australians.”

The ALRC made 24 recommendations, including that the Government conduct a separate review of the shareholder class action regime.

It viewed soaring directors’ and officers’ premiums and insurers leaving the market as a “canary in the coalmine” that suggested “something is not quite right”, but an earlier draft report prompted “claims and counterclaims” over alleged problems.

Law firm Allens says Attorney-General Christian Porter has indicated a further separate review is not a high priority.

“Nonetheless, we see it as important issue for the business community and will continue to advocate for reform in this space,” it says. “However, it is likely to require a long-term approach.”

The ALRC says the Federal Court should have “exclusive jurisdiction” over class actions arising from the Corporations Act and Australian Securities and Investments Commission Act, and suggests amendments to address the rising number of competing class actions.

It proposes greater oversight of third-party litigation funders, without requiring that they become licensed in the same way as financial service providers, and notes their important role providing access to justice.

“A suite of recommendations to improve the regulation of litigation funders and to support the unique role of the Federal Court in protecting the interests of all group members is recommended in lieu of a licensing regime for litigation funders,” it says.