UK government proposes lifting the ban on damages-based agreements in opt-out competition collective proceedings

The UK government has proposed lifting the current ban on damages-based agreements (DBAs) in opt-out competition collective proceedings (also known as opt-out class actions before the Competition Appeal Tribunal), according to a Law360 report dated 20 July 2026. A DBA is a funding arrangement under which a lawyer is paid a percentage of the damages recovered for their client, rather than charging by the hour. DBAs are already permitted in some English litigation contexts but have been prohibited in opt-out collective proceedings, which are cases where class members are automatically included in a claim unless they actively choose to leave. The government's proposal would expand the funding options available for such claims and is framed as a means of reducing costs. The proposal forms part of a wider review of the collective proceedings regime. Opt-out competition claims have grown significantly in the UK since the regime was introduced, covering matters such as excessive interchange fees, cartel damages, and abuse of dominance by digital platforms. Broadening DBA availability would make it easier for claimant-side lawyers and litigation funders to finance large opt-out cases, potentially increasing the volume and value of collective competition claims brought before the Competition Appeal Tribunal. Separately, the FCA announced that insurance broker Anthony Jones (UK) Limited (AJL), a Kent-based firm, has agreed to stop carrying out any regulated activity. The FCA urged customers who purchased insurance through AJL to contact their insurer or underwriter directly to confirm whether their policy remains valid and whether premium payments have been received.