News 28 Sep. 2022

Simon Batifort Quoted by GAR on Proposed Regulations of Third-Party Funding in Europe

Partner Simon Batifort was quoted in an article entitled, “EU parliament calls for regulation of third-party funding,” published by Global Arbitration Review (GAR) on September 23, 2022. The article examines the EU Parliament’s adoption of a report authored by German MEP Axel Voss recommending a new regulatory framework to ensure responsible third-party funding.

Speaking to GAR, Mr. Batifort stated that there is “growing concern” among states regarding the “widespread use” of third-party funding in investment arbitration. “In the absence of express rules, most arbitral tribunals have been reluctant to intervene to curb the abuses arising out of third-party funding, such as funders refusing to take responsibility for adverse cost awards. This new proposal, like the ongoing discussions within UNCITRAL Working Group III, recognises the need for regulation in this area.”

Mr. Batifort co-authored the chapter on “Third-Party Funding in Investment Disputes,” in the ICC’s Business Guide to Trade and Investment, Vol. 2, as well as chapters on “Third-Party Funding: Security for Costs and Other Key Issues,” in the first and second editions of The Investment Treaty Arbitration Review.