Use of third party funding for international arbitration is growing, especially in Hong Kong and Singapore where prohibitions against its use have been either relaxed or eliminated. As third party funding is to stay in international arbitration, principles for arbitrators, parties and lawyers to use in such proceedings have been introduced. The purpose of these proceedings is to develop consistency and more informed decision-making in issues relating to third party funding. It is common knowledge that third part funding of litigation generally, and in the international arbitration sphere in particular, is a field that changes extremely fast. Therefore, there is a risk that any fixed set of principles introduced to this field will quickly become outdated and obsolete.
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Summarized by Natalia Tsar.