Partner Emmanuel Jacomy (International Arbitration-Singapore) and counsel Edward Taylor (International Arbitration-Hong Kong) spoke on the topic of “The Asia Pacific’s Evolving Dispute Funding Landscape” at a webinar co-hosted by Shearman & Sterling and Omni Bridgeway on 24 November 2022.
The session moderated by Cheng-Yee Khong of Omni Bridgeway focused on reforms that came into force in Hong Kong on 16 December 2022 allowing parties and their lawyers to enter into Outcome Related Fee Structures (ORFSs), including conditional fee and contingency fee arrangements, for arbitrations and related court proceedings. Among other potential benefits, Emmanuel explained that ORFSs will provide parties with options for reducing upfront legal costs, improving cash flow, sharing risk and aligning incentives. Edward explained that these reforms will permit parties with disputes in or outside Hong Kong to make use of a world-class range of funding options and identified practical scenarios in which ORFSs could be effectively deployed. Edward also compared Hong Kong’s reforms to similar reforms in Singapore earlier this year permitting conditional fee arrangements.
Tom Glasgow and Marjolein van den Bosch-Broeren, senior representatives of leading third party funder Omni Bridgeway, addressed the availability of Third Party Funding (TPF) in Hong Kong and Singapore, the benefits for companies in combining TPF and ORFSs and enforcement issues.