Document ID: chunk:federal_register_of_legislation:F2024C01249:reg:1:p6
Version: federal_register_of_legislation:F2024C01249
Segment Type: reg
Provision Reference: reg 1 (pt 6/148)
Character Range: 343582–346287

(c) the funds, indemnities or both enable the external administrator or the body corporate to:
 (i) conduct investigations; or
 (ii) seek or enforce a remedy against a third party; or
 (iii) defend proceedings brought against the body corporate in relation to the external administration of the body corporate (other than in relation to allegations, made by creditors or members of the body corporate, of negligence or non‑performance of duties by the external administrator).
 (4) An arrangement (a litigation funding arrangement) that has all of the following features is declared not to be a managed investment scheme:
 (a) the dominant purpose of the arrangement is proving claims made by a general member who is an individual under Division 6 of Part 5.6 of the Act (which may include the funding of the preparation and the lodgement of the proofs);
 (b) the steps taken under the arrangement include a lawyer providing services in relation to:
 (i) making a demand for payment in relation to a claim; or
 (ii) lodging a proof of debt; or
 (iii) commencing or undertaking legal proceedings; or
 (iv) investigating a potential or actual claim; or
 (v) negotiating a settlement of a claim; or
 (vi) administering a deed of settlement or scheme of settlement relating to a claim;
 (c) a person (the funder) provides funds, indemnities or both under a funding agreement (including an agreement under which no fee is payable to the funder or lawyer if the arrangement is not successful in proving claims) to enable the general member to prove the claims;
 (d) the funder is not a lawyer or legal practice that provides a service for which some or all of the fees, disbursements or both are payable only on success;
 (e) the arrangement is not a litigation funding scheme.
 (5) An arrangement (a litigation funding arrangement) that has all of the following features is declared not to be a managed investment scheme:
 (a) the dominant purpose of the arrangement is for a general member to seek remedies to which the general member may be legally entitled;
 (b) the steps taken to seek remedies include a lawyer providing services in relation to:
 (i) making a demand for payment in relation to a claim; or
 (ii) lodging a proof of debt; or
 (iii) commencing or undertaking legal proceedings; or
 (iv) investigating a potential or actual claim; or
 (v) negotiating a settlement of a claim; or
 (vi) administering a deed of settlement or scheme of settlement relating to a claim;
 (c) a person (the funder) provides funds, indemnities or both under a funding agreement (including an agreement under which no fee is payable to the funder or lawyer if the arrangement is not successful in seeking remedies) to