Research On Regulation Of Third Party Funding In Arbitration

Third party funding plays an important role in international arbitration,which is a good funding model,not only for the funded parties but also for the funders.While there are some challenges in third party funding with the development process,this paper aims at exerting the function of third party funding,and avoiding its problems,in order to establish a perfect regulation model.This article including the following four parts.The first part of this paper points out the challenges of international arbitration resulted from the third party funding,including conflicts of interest and disclosure requirements,costs and the control of the proceedings.The conflicts among third party funders and arbitrators and lawyers are the incorporate of conflicts of interest,which may influence the justice of arbitration.Costs including the security for costs and costs allocation.The second part analyzes the necessity of the regulation of third party funding,it will help parties to protect their interests,and benefit to improve the notability of our arbitration institution,and promote the healthy development of arbitration market.The third part of this paper combs the international arbitration practices and the regulation models of third party funding in the world.There is a “soft law” regulation model in England and Wales,a “hard law” regulation model in Australia,however,there is a more balanced regulation model called “hybrid model” in Singapore and Hong Kong,which takes laws and arbitration rules to regulate the third party funding.The last part of this paper put some suggestions on the basis of relevant practices to build regulation model in the China's mainland of international arbitration.For the practicability,mainland doesn't have the traditional of maintenance and champerty,there is no legal obstacles in third party funding and its regulation.For the specific regulation,taking the “hybrid model” to regulate the third party funding,for example,regulating the conflicts of interest by legislation,while regulating other problems byarbitration rules.Besides,we can establish an association of funders to achieve self–regulation.