Singapore’s Ministry of Law has submitted Civil Law (Amendment) Bill 2016 and Civil Law (Third Party Funding) regulation for its First Reading in the Parliament.
According to the bill, third-party funding (TPF), previously restricted for disputes, will be allowed for international commercial arbitration proceedings, thereby enabling a regulatory framework for third-party funders.
TPF enables a party to litigate or arbitrate without having to pay for it. Professional third party funders can pay some or all of the costs associated with a dispute in return for a share of the proceeds if the dispute is successful. If the dispute is not successful, the funder bears the costs it has funded.
