On 6 May 2025, the Chartered Institute of Arbitrators (“<span class="news-text_medium">Ciarb</span>”) published a draft guideline for consultation on third-party funding (“<span class="news-text_medium">TPF</span>”) in arbitration. The guideline, which was open for feedback until 17 June 2025, aimed to offer a comprehensive tool for practitioners, promoting transparency in the TPF process.
The guideline had two main objectives: (i) assisting participants in securing funding for arbitration claims; and (ii) aiding parties and tribunals in managing funded cases effectively. It was divided into two sections. Part 1 covered the TPF process, including the timing of arrangements, pricing, due diligence in selecting funders and the terms of funding agreements, along with after-the-event insurance. Part 2 addressed the operation of arbitration involving TPF, such as funder involvement, disclosure requirements, potential conflicts of interest, security for costs and case management.
The consultation period ended on 17 June 2025 and the initiative sought to provide a clear overview of TPF in arbitration, from securing funding to the completion of proceedings, developed with input from both practitioners and funders.
