As noted in our earlier
post, Hong Kong published its long-awaited
Code of Practice for Third Party Funding of Arbitration on 7
December 2018.
Publication of the Code has removed the final hurdle to third
party funding of Hong Kong arbitrations. The law that allows such
funding will come into effect on 1 February 2019, via sections 98K
– 98O of the Arbitration Ordinance (Cap. 609). These sections
abolish the criminal and tortious offences of champerty and
maintenance in relation to third party funding of arbitration, as
well as arbitration-related court and mediation proceedings. For
more detail on the law, click
Who must comply with the Code?
The Code applies to "third party funders", as defined
in s.98J Arbitration Ordinance. Broadly, a funder is any person who
is party to an agreement in writing to fund a party to arbitration
proceedings1 in Hong Kong (or in any other
seat, if the work is done in Hong Kong), and who does not have a
legitimate interest in
