The topic of third party funding in arbitration process is one of the hot discussion topics nowadays in international arbitration community. The regulation is naturally slower than the evolvement of the practice in this area, and therefore, the fundamental question of whether a party has a duty to disclose the fact of funding and on what grounds, is still open.Starting from the overview of the problematic issues, the analysis of this article further focuses on the regulation of disclosure duty in the national legislation, institutional arbitration rules, soft law as well as in international agreements.
Two main grounds for disclosure of the funding in arbitration process are distinguished and examined in more details: (i) the transparency of the arbitration process and the avoidance of conflict of interests; (ii) the purpose to ensure the protection of the interests of both parties by deciding the requests for the security for cost. The cases of international center for settlement of investment disputes and international commercial arbitration case law are discussed in this article.
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