On 1 April 2013, Part 2 of the Legal Aid, Sentencing and Punishment of Offenders (LASPO) Act 2012 came into force. The Act abolishes recoverability of After the Event insurance premiums and success fees from defendants, introduces a new form of contingency funding agreement (damages based agreements or DBAs) and imposes an additional penalty on unsuccessful defendants under Part 36 of the Civil Procedure Rules. The Act also removes legal aid for many types of claim and prohibits payment and receipt of referral fees in personal injury claims. The Act and the accompanying reforms to the Civil Procedure Rules (CPR) comprise the biggest shake up of the litigation funding and costs regime for 10 years - see our February blog posts for more detail on the various reforms. Now that the starting whistle has officially been blown on the new regime, it remains to be seen how effectively the judiciary will enforce the new rules and sanctions. Watch this space!