Spotlight On: Third Party Funding In Singapore And Hong Kong

Third party funding (TPF) in arbitral and related proceedings is becoming increasingly popular, with Singapore relaxing its policies against TPF and Hong Kong laying the ground work to introduce TPF in their respective jurisdictions. Set out below is a summary of the steps taken in both jurisdictions and what this will mean for parties to arbitration agreements seated in these regions.

SINGAPORE: THIRD PARTY FUNDING IN INTERNATIONAL ARBITRATION: SHARPENING SINGAPORE'S EDGE AS A LEADING ARBITRATION SEAT

Introduction

Third party funding refers to the funding of legal proceedings in return for financial reward, by a third party that does not otherwise have an interest in those proceedings. The third party funder typically obtains a percentage of the damages awarded or the settlement sum, as its reward. Third party funding has been on the rise over the last decade with numerous jurisdictions embracing and/or widening their policies on the same. It is also