In order to give investors complete peace of mind in both these respects, CFS has contracted Knights PLC, a leading 100+ partner law firm to do the following:

Receive all investor cash directly into their “Client Account”.
Perfect the investor’s security by ensuring the assignment of the ATE policy and all other formalities are completed before any monies are released.
Make premium payments to acting ATE brokers, and make agreed disbursements to the lawyers acting in the case at specific stages in the litigation.
Receive the contractually agreed share of damages or ATE proceeds on completion of the case into their “Client Account” and to distribute this in accordance with the terms of the funding agreement.

In addition to the above, before approving terms, Knights undertakes extensive due diligence on any ATE Provider, its contracts, internal procedures and the insurance providers it uses.

The primary risk is insured, with premiums paid out of the amount which is lent to the litigant as a condition of offering funding. Our experience of the business model dictates that there are two areas when an investor can experience problems without proper protection namely:

Non-assignment of the ATE policy to the investor to secure his position.
Misappropriation or misuse of investor’s cash.

Case selection

In order for cases to be recommended to CFS for investment by the Advisory Committee, a strict set of criteria must be met. To find out more, follow the link below.

Learn more