Third-Party Funding Framework To Also Cover Singapore International Commercial Court Proceedings
Singapore’s Ministry of Law on Monday said it will extend the third-party funding (TPF) framework to cover domestic arbitration proceedings, connected court, and mediation proceedings, starting from June 28.
The framework will also cover proceedings commenced in the Singapore International Commercial Court (SICC), as well as related mediation, for as long as these proceedings remain in the SICC.
The move comes amid the Covid-19 pandemic where there may be a rise in disputes and companies facing insolvency risks. Funding options such as the TPF allow litigants to pursue meritorious claims in permitted proceedings, as opposed to forgoing their legal rights due to financial constraints.
Having third-party funders come in during the legal process is more of a risk management tool than anything, said Dinesh Dhillon, partner, and co-head of Allen & Gledhill’s international arbitration practice.