In November 2015, the trade body of the insolvency profession, R3, led a coalition of ten business organisations in writing to the Justice Secretary Rt Hon Michael Gove MP to seek a permanent exemption for insolvency litigation from the ban on funding recovery litigation via Conditional Fee Agreements.
The ban for other types of litigation was introduced by the ‘Jackson Reforms’ and insolvency litigation was given a temporary extension ahead of an expected announcement on the issue before the end of the year. The case for retaining the insolvency exemption is that it would protect the public interest and public money; it would deter white-collar crime and put money back in the hands of creditors. As well as significant support for a permanent exemption from across the business community and insolvency profession, there is also significant cross-party support from MPs and Peers. Time will tell.