A Study On Investor's Rights And Duties In Hong Kong's Third Party Funding Arbitration

With the growth of economy,the third party funding are increasingly participating in the international arbitration,it not only brings infinite challenge to international arbitration proceedings but also an opportunity.The major arbitration centers,such as Britain,Australia and Singapore have introduced more flexible policies on the third party,and Hong Kong government and the arbitration center in Hong Kong have launched a heated discussion on how to introduce a third party funding in arbitration.So far,Hong Kong has issued relevant documents:Third Party Finding Arbitration Consultation Document,guidelines of the third party funding arbitration in Hong Kong,the 2016 arbitration and mediation legislation(third party)(amendment)bill,the third party funding arbitration rules.All the files affirmatively agree to introduce third party funding in Hong Kong arbitration to modify the relevant law system,and put forward some suggestions on how to modifying the law.Through analyzing the rights and responsibilities of third-party investors in those documents,its better to evaluate the advantages and the disadvantages of the rules of third party funding in Hong Kong arbitration,because investors are the inner impetus of the third party funding system.Whether the third party funding system could rise and promote Hong Kong arbitration largely depends on the investors' participation in arbitration.In order to motivate and encourage the enthusiasm of the third party investors,Hong Kong authorities should give a mode of "light" management,and balance the rights and obligations in the relevant legal documents,avoiding increasing excessive obligations to investors.What's more,the rules should define the specific category to the rights,the way of implementation and relief path.Specific obligations should be standardized and rules should also be clearly stipulated.The rights of investors include confidential privilege,controlling the tribunal,and withdrawing,and the principal obligation of investors includes disclosing,capital adequacy and observing the adaptation law obligations and so on.The confidential privileges of the investors shall be equivalent to the confidentiality obligations of the documents and information about the tribunal.In acknowledgement of the rights of the investors to the controlling of the tribunal,it is also necessary to make corresponding disclosure obligations at the same time,and the interests of the original arbitration parties should not be impaired;The investors must respect the corresponding law when the investors want to withdraw an arbitration agreement,,otherwise the agreement would not be valid.It is only based on the balance of rights and obligations,the conflicts of parties'interests can be effectively harmonized and the arbitration can be well promoted.