New IFISA launches to fund litigation cases
A NEW Innovative Finance ISA (IFISA) is offering investors an eight per cent return for backing litigation cases.
Launched by Rob Rutter, a former Merrill Lynch vice president, the IFISA will help fund the legal costs of individuals bringing cases against banks or companies.
It has a minimum investment of £2,000 and will only fund cases in the UK where there is also insurance available if the claimant loses.
The IFISA is run by Northern Provident Investments and will assess cases in the UK based on how much can be claimed, the strength of the defendant and whether it can be concluded within 24 months.
“Investors will ultimately be assisting those who may have been wronged by banks, institutions or individuals,” Rutter said.
“A litigation funder funds the legal costs of those who had their lives or businesses ruined by things such as professional negligence – and wish to seek financial redress.”
The idea of the IFISA is to help those who cannot afford to commence proceedings against a big corporation.
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“The cost of instigating proceedings and obtaining specialist expert, witness evidence is sometimes more than litigants can afford to pay out of their existing resources or income,” a note on the Just ISA website said.
“These are usually already depleted when the claimant’s business or personal financial situation has suffered as a result of the very issue for which they now wish to sue, and which they cannot now afford to fund.”
It comes after a new crowdfunding platform launched in the UK that enables investors to fund litigation cases.
AxiaFunder went live earlier this month and has already fully funded its first case.
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