Litigation funding for both court litigation and arbitration is permitted in the Netherlands according to Dutch law but is developing slowly.
Once its advantages, such as ensuring access to justice, are recognised it is expected to become more widespread.
The Dutch courts are also making progress in promoting access to justice through developments on collective redress. Besides the successful introduction of the Dutch Collective Settlement of Mass Claims Act in 2005, the Dutch legislator in 2017 proposed new legislation to introduce the ability to claim monetary compensation by way of a representative action. At the time of writing, this had not yet been adopted.
The funding market in the Netherlands is not currently regulated and the legislator does not appear inclined to introduce regulation. This is not entirely surprising given that, based on criteria such as cost-effectiveness, efficiency, impartiality and independence, the World Justice Project ranked the civil legal system of the Netherlands the highest of all civil justice systems in the world.