Singapore’s parliament has passed two separate bills – the Civil Law (Amendment) Bill 2016 and the Civil Law (Third-Party Funding) Regulations 2016, clearing the way for third-party funding (TPF) in certain areas of dispute resolution.
This latest move is expected to consolidate Singapore’s position as a leading centre for dispute resolution in the region. TPF is expected to allow parties to a dispute to mitigate the risks of litigation, manage cash-flow and pursue meritorious claims that they might not be able to pursue without sufficient funding.
The Civil Law (Amendment) Bill 2016 will allow third-party funding in certain categories of dispute resolution proceedings, while the Civil Law (Third-Party Funding) Regulations 2016 lay out the categories of dispute resolution in which third-party funding is allowed, including international arbitration proceedings, and court and mediation proceedings. It also sets the qualifications needed to qualify as a third-party funder.
Senior Minister of State for Law Indranee Rajah was quoted as saying in local media that TPF would “offer businesses an additional financing and risk management tool when engaged in the relevant categories of proceedings. This includes the financing of valid claims which they may otherwise not pursue due to financial constraints. Businesses that seek to access third-party funding will typically have to undergo a rigorous process of claim assessment by the chosen funder.”