It’s official: the Singapore Parliament has today passed the Civil Law (Amendment) Bill 38/2016 on third-party funding.
This legislation ensures that Singapore will join the ranks of other leading international arbitration centers in allowing clients to access financing. It puts Hong Kong on notice as Singapore leapfrogs into position as the regional arbitration center with the clearest position on third-party finance. Given the growing percentage of arbitration matters that draw on outside financing in some form, this is a significant development.
The Singapore bill, about which Burford previously wrote when it was introduced to Singapore’s Parliament in November 2016, will permit third-party funding in arbitration and lays the groundwork for further expansions. The legislation noted that litigation finance is “a feature in major arbitration centres around the world” and that allowing it will help to “consolidate Singapore’s position as a key seat of arbitration in Asia”.