The Regulation Of Third Party Funding In International Commercial Arbitration

With the diversified development of dispute settlement and the increase of cost,Third Party Funding develops fast.Third Party Funding whose contents and forms constantly enrich and evolve has widely used in litigation and arbitration.Previous academic studies have discussed more about the legal status of Third Party Funding,the introduction of Third Party Funding and whether or not it is necessary to develop Third Party Funding in our country.However,the relevant laws and rules on Third Party Funding improve day by day and the regulations of Third Party Funding also develop a lot.So it's necessary to focus on the regulation of Third Party Funding the study of Third Party Funding in China.This thesis studies the impacts of third party funding on arbitration procedure and the problems need to be regulated in international commercial arbitration.At the same time,it examines the regulation modes of Third Party Funding internationally and explores the construction of Third Party Funding system in China.This article mainly through four parts to regulate and analyze the Third Party Funding in arbitration.In the first part,we put forward the questions of regulation of Third Party Funding in arbitration.It analyses the definition of Third Party Funding and its legal status in arbitration.There are some problems raised by Third Party Funding in arbitration such as the risk of indiscriminate litigation,the complexity of conflicts of interests and the cost allocation.To deal with these problems,there are two regulation means: the hard law and the soft law.In the second part,through the analysis of the legal basis and value orientation of the regulation of Third Party Funding,we conclude the reasons and the purposes for the regulation of Third Party Funding.In the third part,we analyze the three problems that need to be regulated in the first part respectively and learn from the practices of Hong Kong,Singapore,the United States,Australia,the United Kingdom,Canada and other representative countries in the regulation of Third Party Funding.We analyze three elements of regulated problems: subject,principle and measures.At last,through the theoretical and practical analysis of the regulations of Third Party Funding in previous three parts,we focus on the theoretical choice and system design of Third Party Funding in arbitration in our country: the construction of Third Party Funding system in China can start from the following aspects: the development of Third Party Funding in arbitration in our country is slow,but the conditional fee arrangements belong to Third Party Funding to a certain extent.The conditional fee arrangements are the breakthrough points of Third Party Funding's development and it can be from the soft law level to develop Third Party Funding.At the same time,we shall learn from the existing regulation system and formulate relevant self-regulation rules.The responsibility of the funders and the disclosure obligation of Third Party Funding shall make clear.The arbitration institution should consider the impact of third party funding on arbitration fee allocation.