A code of practice on third party arbitration funding was issued on 7 December 2018, setting out the practices and standards third party funders will be expected to comply with when carrying on activities in connection with arbitration funding. To enable funding to take place, relevant parts of Hong Kong’s Arbitration Ordinance have been amended and the amendments will come into force on 1 February 2019.
The amendments to the Arbitration Ordinance include the abolishment of the common law legal doctrines of ‘maintenance and champerty’, which prohibit third party funding of litigation in Hong Kong, in relation to arbitrations. The Amendment Ordinance was passed in June 2017, but the DoJ decided against enacting all of its provisions until an accompanying code of practice was developed. The 2017 Amendment Ordinance also contained provisions relating to third party funding of mediation. The DoJ is yet to bring these into force, and announced in December that it would defer doing so until “further deliberation on the way forward” had taken place. [read more]
Source: Pinsent Masons LLP | out-law.com