Class action legal proceedings using litigation funding have been cut some temporary slack by the Australian Securities and Investments Commission (ASIC).

The corporate regulator says it will generally grant transitional relief from managed investment scheme requirements until June 30 next year to the lawyers and litigation funding companies involved in actions currently under way.

These actions faced disruption following a recent decision by the Full Federal Court in the case of Brookfield Multiplex v International Litigation Funding Partners that a funded class action is a managed investment scheme within the meaning of the Corporations Act.

ASIC says the relief will avoid disruption and allow time for it and the Federal Government to consult on how funded class actions should be regulated under the Act in future.

“Depending on the outcome of that process, existing class actions may need to be restructured to meet the requirements of the Act by the end of the relief period,” ASIC said in a statement.