Conflicts Of Interest In Third-party Funding In Arbitration

"Third party funding" originated in Anglo-American law system,the first is to use in the field of litigation,in recent years,with the development of social economy and the arbitration as a way to settle the dispute by disputes over the parties,especially the widely accepted international commercial field,"third party funding" is applied in the field of arbitration and getting more and more the favour of the parties and investors,even though there are some objections,also could not slow the momentum of the system spread rapidly.Based on such background,the development of the third party funding in arbitration caused a lot of challenges for the traditional arbitration system,one of the most obvious and most in need is a conflict of interest problems.The traditional arbitration system also provides for disclosure obligation is to solve the conflict of interest between the arbitrators,but the third party funders appeared as a new subject,is not in the scope of the original disclosure obligation regulation,at the same time also brought a wider variety of conflicts of interest,thus brought the arbitration tribunal and the other party a certain amount of trouble.For this reason,some countries（regions）and arbitration institutions have begun to specify corresponding rules for regulation,such as Singapore,Chinese Hong Kong,the International Bar Association,etc.,but some countries（regions） still hold a wait-and-see attitude towards third-party arbitration,such as Chinese mainland.However,in the context of the current international situation,in addition to mastering the economic discourse power,mastering the cultural discourse power is also extremely important.Once more disputes the parties choose arbitration institutions in our country to solve international commercial arbitration,that means will be to bring more economic benefits to our country,therefore,we need to monitor the field of third party funding in arbitration,to perfect the related system actively,from follow the trend to lead,to master the initiative in the field of international commercial arbitration,improve the international influence.Therefore,this article in brief introduces the third party funding for arbitration and its rise,the third party funding arbitration is the conflicts of interest and lead to a series of problems,and the schematics of international current funding arbitration to a third party has carried on the induction summary interest conflict solution.Therefore,in this paper,taking the arbitration award as the node,the settlement method is divided into the way of pre-regulation and the way of post-regulation.The ways of pre-regulation include the establishment of disclosure system and the regulation of third-party funding agreement,and the ways of post-regulation include the application of the other party for dismissal or non-recognition and enforcement,and the self-regulation within the third-party funding,and a party aggrieved by a conflict of interest between a third party sponsor and an arbitrator is empowered to claim damages.Based on the above analysis and summary,this paper finally considers the introduction of third-party funding arbitration in China in combination with the actual situation in China,and believes that it is necessary to introduce the third-party funding arbitration system at present.However,the absence of a clear ban on third-party funding arbitration in China is a good start.Of course,the introduction of third-party funding in arbitration will lead to a series of problems,so we need to have a standard to judge the conflicts of interest,identify which conflicts of interest need to be under supervision,at the same time,we need to start from different aspects of society,industry,government to do a good job of supervision,in addition,we need to grasp the degree of supervision,according to the development of third-party funding in arbitration,in different stages from different perspectives,different supervision,to do light,heavy,urgent and slow,while providing the third-party funding in arbitration with sufficient development space.Through the innovative supervision mode,we will create a good atmosphere for the third-party arbitration,filter the adverse effects as much as possible,and guide the international commercial arbitration in China to flourish in a good way.