Funders of collective actions would stand to receive their payback more quickly and parties that behave unreasonably be subject to stricter cost sanctions under light-touch proposals for reform of the Competition Appeal Tribunal jurisdiction unveiled on Friday.

They also reveal that the government has decided not to expand the scope of the opt-out collective regime to other areas of law - or to narrow it just to competition law claims that follow the decision of a regulator.

The proposals to make the opt-out collective action regime 'swifter and simpler' followed a call for evidence last year, the tenth anniversary of the Consumer Rights Act. They were welcomed by claims firms and funders.

If adopted, the reforms would require the CAT to indicate the 'reasonableness' of the funder's return at the point of certification of a claim. They would introduce a presumption that funders receive their return at the point of a damages award being ordered rather than waiting for the outcome of damages distribution.