Answer ... The AO has recently been amended, such that the common law torts and offences of champerty and maintenance no longer apply to third-party funding of arbitration and mediation.
Under the Arbitration Ordinance, a Code of Practice sets out the standards with which third-party funders are ordinarily expected to comply in connection with arbitration funding. It states:
- the requirements for funding agreements;
- the minimum amount of capital that a third-party funder is required to have;
- the procedure for addressing conflicts of interest; and
- whether third-party funders will be liable to funded parties for adverse costs.
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