A management group headed by the Civil Justice Council is working on a proposal to regulate companies providing funding to litigation cases.

It is understood that the Claims Management Regulator is to be asked to take on the responsibilty to ensure that funders follow a code of conduct. The issue is particularly pertinent following the decision in Arkin v Borchard Lines where a funder was required to contribute towards the defendant's costs but only to the extent of the funding provided. The Regulator may be asked to consider issues such as ethics and evening the financial security of the funder.

In other news, DAS have aquired Law Assist to bolster their ATE Insurance portfolio. The purchase for an undisclosed sum brings a further £7m of business for the specialist underwriter. It is believed that Law Assist will continue to operate under the existing brand but will be underwritten by the DAS 80e scheme.