From 1st April 2016 any Conditional Fee Arrangement (CFA) uplift and After the Event Insurance (ATE) will no longer be claimable from the losing party in Insolvency Litigation.  Whilst Insolvency had previously been excluded from the reforms (originally introduced in 2012), this exemption has now ceased.

The purpose of the exemption afforded to Insolvency Litigation was to enable office holders to pursue claims  which were sometimes otherwise restricted due to a lack of funding.  An office holders ability to pursue these types of claims increased the prospects of a return to creditors and provided a mechanism to hold unfit Directors to account.

It will be interesting to see how Insolvency Litigation develops and no doubt Solicitors will be considering how to structure agreements with their clients (insolvency Practitioners) in the future.