Concerns over Excessive Costs in Investment Law Regime and the Role of Third-Party Funding
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AbstractHigh costs are a major problem in the current investment law regime and this problem does not seem to cease in the near future. Parties of the potential dispute give a serious thought on the possible costs of the proceedings and how they can handle it. Both small investors and multinational companies are looking for better ways to deal with those high costs created by the current investment dispute mechanism. At this point, Third-Party Funding (TPF) has been a major player, especially when the numbers in the last years examined it has been seen that disputing parties seek funding in more than half of the cases recorded by ICSID according to the anecdotal numbers This indicates how important the cost issue in the current regime and how important TPF already is for the parties. However, TPF also brings some potential problems especially regarding the transparency of the system. Thus, the disclosure is getting more important to assure that the system is transparent enough and no conflict of interest has been raised. This paper examines the role played by third-party funding companies and the transparency problem TPF has raised. UNCITRAL’s general mandate, namely legal harmonization, can play an important role in removing worldwide concerns over the transparency of the system with the TPF’s entrance to the system. Having entered into force in 2017, the Mauritius Convention has addressed the transparency problems. All these rules and UNCITRAL’s general role will be examined to give potential solutions to the issues related to TPF.
All Author(s) ListCan Eken
Name of ConferenceUNCITRAL-UM JOINT CONFERENCE 2018-Emerging Legal Standards in Harmonization of Trade Law and Implications for Regional Economic Cooperation
Start Date of Conference01/12/2018
End Date of Conference01/12/2018
Place of ConferenceUniversity of Macau
Country/Region of ConferenceMacau
Year2018
Month12
LanguagesEnglish-United States

Last updated on 2019-26-11 at 11:27