The Ministry of Justice is seeking feedback from key stakeholders on the impact of Part 2 of the LAPSO reforms, which abolished the recoverability of success fees under CFAs and after the event insurance premiums.
Until April 2015 insolvency claims were exempt, enabling insolvency practitioners to pursue claims and if successful recover any success fee and more importantly after the event insurance premiums. There was concern at the time, that by abolishing the ability to recover the premium that insolvency claims would be stifled.
Initial discussions with key stakeholders suggest that they have adapted to the reforms and they are working well. The MOJ is assessing the reforms and have published an on line survey which can be completed up to 24 August 2018. Click here for further detail.
Whilst not aimed specifically at the insolvency profession, the survey offers an opportunity to report back on whether the reforms have had a detrimental impact as initially envisaged.