New provisions allowing third-party funding of arbitration come into force on 1 February 2019.
Key Points:
..The key provisions of the Arbitration and Mediation Legislation (Third-Party Funding) (Amendment) Ordinance 2017 allowing third-party funding of arbitration come into force on 1 February 2019.
..The Amendment Ordinance confirms that the laws of maintenance and champerty do not apply in relation to third-party funding of arbitration.
..The sought-after reform might allow parties to shift the financial risk of arbitration, as well as remove arbitration costs from their profit and loss statements and balance sheets. More broadly, the reform could potentially increase access to justice.
..The Amendment Ordinance will “add to the attractiveness of Hong Kong as an international arbitration centre,” says the Department of Justice.
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