The Federal Government will finalise a response on litigation funding and class action reform proposals after completing further consultations this year.

Treasurer Josh Frydenberg and Attorney-General Michaelia Cash say legislation has already been introduced to make permanent changes to continuous disclosure rules and further reforms will be considered as part of its response to a Parliamentary Committee inquiry.

The Joint Committee on Corporations and Financial Services, which handed down its report on litigation funding and class action regulation last December, made 31 recommendations. They included the disclosure rule reforms and introducing a guaranteed minimum rate of return for class members.

“This measure is of particular importance to ensure successful applicants are adequately compensated in their cases as well as preventing litigation funders and law firms from taking disproportionate fees in the process,” the Government statement says.

“Consultation on a guaranteed rate of return will be conducted by Treasury and the Attorney-General’s Department ahead of the Government finalising a response.”

The committee’s final report says Australia’s “unique and favourably regulated” litigation funding market has become a global hotspot for international investors, including many based in tax havens and with “dubious” corporate histories.

Report recommendations also relate to competing class actions, consistency across jurisdictions and issues around costs and fees.

Insurers appearing before the parliamentary committee last year highlighted that directors’ and officers’ (D&O) cover was becoming increasingly unaffordable as a result of class action pressures, particularly related to listed companies.