Answer ... Third-party funding is permitted for international arbitrations and related court and mediation proceedings funded by a qualifying third-party funder. The Civil Law (Amendment) Act, 2017 (passed on 10 January 2017) abolished the common law torts of maintenance and champerty . The Civil Law (Third-party Funding) Regulations came into force on 1 March 2017 and provide that a qualifying third-party funder must satisfy and continue to satisfy the following criteria:
- It carries on the principal business, in Singapore or elsewhere, of the funding of the costs of dispute resolution proceedings; and
- It has a paid-up share capital of not less than S$5 million or not less than S$5 million in managed assets.
Amendments to the Legal Profession Act and Legal Profession (Professional Conduct) Rules clarify that legal practitioners may introduce or refer funders to their client and can advise their clients in relation to the third-party funding contract (as long as they receive no direct financial benefit from the referral); but also that legal practitioners are under a duty to disclose to the court or tribunal, as the case may be, the existence of third-party funding and the identity of the third-party funder.
For more information about this answer please contact: Alvin Yeo and Koh Swee Yen from WongPartnership LLP