Analysis Of The Disclosure Mechanism Of Third-Party Funding In International Arbitration

As a new way of investment in the field of international arbitration,Third-party fundingpresents a rapid development trend.Although there are many advantages of Third-party funding in internationalarbitration,but the new problems caused by it still can not be ignored,which is concerned about the topic of conflicts of interest and disclosure obligations.However,due to the uncertainty of the definition of third party funding arbitration and the complexity of its interests relations,the current international third-party funding for the issue of arbitration is still a lack of a unified solution and regulatory model.In the first Chapter,in view of the fact that Third-party funding in international arbitrationis still a relatively new concept in mainland China,this paper first analyzes the concept and essence of Third-party funding in international arbitration and compareit with similar concepts such as contingency fee arrangement,assignment of claims,insurance contract,it is concluded that Third-party funding is a non-recourse financing.The following is a description of the controversy over Third-party funding in international arbitration.It is clear that Third-party funding in international arbitration has significant financing significance for parties to international arbitration cases,and is more conducive to disputes involving judicial and quasi-judicial treatment,which facilitates the settlement of cases and of the arbitration cases have a screening effect.At the same time,the emergence of third-party funding arbitration has posed many challenges to international arbitration procedures,the most important of which is the issue of conflicts of interest,which affects the fairness of the proceedings.Notwithstanding its limitations,TPF is an inevitable commercial reality for dispute resolution and ‘the life-blood of the justice system'.It serves to provide the arbitration community with an avenue to attain ‘justice for all',a desirable goal which should be encouraged and welcomed in the arbitration community.Hence,instead of focusing on the appropriateness of TPF,the discussion encircling TPF ought to be focused on the extent and manner of its regulation.The Second Chapter deals with the obligation to disclose the existence of third party funding for the settlement of third party funding arbitration issues.In view of the divergent views on whether disclosure arrangements should be disclosed,this paper will discuss the different considerations and elaborate the new form of conflicts of interest arising from the fair and impartial requirements of the arbitration procedure and the creation of a mandatory disclosure obligation of.The existing rules have been disclosed rules,third-party funding arbitration disclosure obligations can draw on existing practical experience,by adjusting the existing framework and explore new regulatory models,and thus reasonable to be regulated.The third part is about the design of thedisclosure rules.While there is no general duty of disclosing a source of a party's funds in international arbitration,this section will explore why mandatory disclosure of the presence of funders in arbitration is desirable.The next issue that arises is the extent of this disclosure requirement.In the case of arbitration cases funded by third parties,the effective disclosure of the investment situation shall be disclosed.The main body of the disclosure includes the arbitrators,the applicant and the arbitration institution shall also actively undertake the obligation of review,which focuses on the obligatory disclosure obligations of the applicant and the disclosure As well as disclosure.In addition,how to supervise the third-party funding arbitration and realize the disclosure obligation from the institutional level,this article discusses the use of third party subsidy arbitration as a financial product as a norm,through the rules of the third-party funding agencies to regulate,through industry self-discipline and international level supervision Regulatory approach.In view of the differences in the understanding and practice of third-party subsidized arbitration,it is necessary to establish a set of objective system of operation for third parties in international arbitration practice.There is still a lot of predictions for the future development of third-party funding arbitration,and most of the existing problems still have no answer.But it is foreseeable that third-party funding can certainly speed up the development of international arbitration if it is possible to regulate it through reasonable procedures.