How arbitration works

Third-party funding in arbitration

Last checked 24 October 2026 · 7 sources

Short answer

Third-party funding means a non-party pays some or all of a party's costs of bringing or defending a case, under an economic arrangement. Arbitration rules now require parties to disclose it. The ICC Rules require prompt disclosure of the existence and identity of any funder ¹. The 2022 ICSID Rules require disclosure of any third-party funding ². In ICSID's fiscal year to 30 June 2026, 12% of newly registered cases included such disclosures ². Singapore and Hong Kong have laws that permit funding of arbitration ^4,6.

ICC rule: Article 12(6), 2026 ICC Arbitration Rules, in force from 1 June 2026 ¹
ICSID rule: Rule 14, 2022 ICSID Convention Arbitration Rules, and Rule 23, 2022 Additional Facility Arbitration Rules ²
New ICSID cases with funding disclosures, FY2026: 12% ²
Singapore framework for international arbitration: In operation from 1 March 2017 ⁵
Singapore extension to domestic arbitration: From 28 June 2021 ⁴
Hong Kong arbitration funding provisions: Commenced 1 February 2019 ⁶

What the term means

The ICC Rules describe it as a non-party that has entered into an arrangement for the funding of claims or defences and that has an economic interest in the outcome ¹.

Funding by an outside party is not the same as legal aid run by an institution. Disclosure rules exist so that the tribunal and the other side know whether an outside party has a stake in the result ^1,2.

Disclosure under institutional rules

Under ICSID Institution Rule 7(e), the notice of registration of a request reminds the parties to make the disclosure required by Arbitration Rule 14 ³.

Forum	Rule	What must be disclosed
ICC ¹	Article 12(6), 2026 Rules ¹	The existence and identity of any non-party funding claims or defences, promptly ¹
ICSID Convention arbitration ²	Rule 14, 2022 Arbitration Rules ²	Any third-party funding received for the pursuit or defence of the proceeding ²
ICSID Additional Facility arbitration ²	Rule 23, 2022 Additional Facility Arbitration Rules ²	Any third-party funding received for the pursuit or defence of the proceeding ²

How common funding disclosures are

ICSID is the only institution covered here that publishes a disclosure rate. In FY2026, the fiscal year ending 30 June 2026, 12% of newly registered ICSID cases included disclosures of third-party funding ².

The figure counts disclosures made in new cases. It does not show how many funded parties won or lost.

Singapore

The Civil Law (Third-Party Funding) Regulations 2017 came into operation on 1 March 2017 ⁵. The Ministry of Law says Singapore first introduced the framework that year for international arbitration and related court and mediation proceedings ⁴.

From 28 June 2021 the framework covers more proceedings ⁴:

Domestic arbitration proceedings ⁴.
Court proceedings arising from or connected with domestic arbitration ⁴.
Proceedings commenced in the Singapore International Commercial Court (SICC), for as long as they remain there ⁴.
Appeals from those SICC proceedings ⁴.
Mediation relating to any of the above ⁴.

Rules for funders in Singapore

Only funders that meet the criteria in the 2017 Regulations may provide funding. The Ministry of Law says qualifying funders must be professional funders whose main business is funding dispute costs, with a minimum paid-up share capital ⁴.

Lawyers in Singapore must follow the Legal Profession (Professional Conduct) Rules 2015, which the Ministry says serve to prevent conflicts of interest between practitioners and funders. The Ministry said in June 2021 that the rules for registered foreign lawyers in the SICC were being amended to require them to disclose the use of funding ⁴.

Hong Kong

The Hong Kong government issued a Code of Practice for Third Party Funding of Arbitration on 7 December 2018. The Code sets out practices and standards that funders are ordinarily expected to comply with ⁶.

The provisions of the amending ordinance that relate to Part 10A of the Arbitration Ordinance, Divisions 3 and 5, commenced on 1 February 2019 ⁶. The government said on 16 August 2021 that commencement of the provisions for mediation had been deferred pending a separate code. It opened a public consultation on that code the same day ⁷.

Common questions

Do I have to disclose a funder in an ICC arbitration?

Yes. Article 12(6) of the 2026 ICC Rules requires prompt disclosure of the existence and identity of any non-party funder ¹.

Is third-party funding allowed in ICSID cases?

The 2022 ICSID Rules require parties to disclose any third-party funding they receive. 12% of new ICSID cases in FY2026 included such disclosures ².

Is third-party funding legal in Singapore?

Yes, for prescribed proceedings. International arbitration has been covered since 2017, and domestic arbitration and SICC cases since 28 June 2021 ^4,5.

When did Hong Kong allow funding of arbitration?

The relevant provisions commenced on 1 February 2019, with a Code of Practice issued on 7 December 2018 ⁶.

Rules and charges change. Check the official source linked on this page before you pay or travel. Spotted an error? Email hello@arbitrationawardsdata.com.

Sources

Arbitration costs and who pays
Official fees at the ICC, ICSID and CAS, how cost advances are split, how tribunals allocate costs, and the LCIA's published median cost.
ICC arbitration explained
How arbitration under the 2026 ICC Rules works, what the ICC Court does, the main stages and fees, what changed from 2021, and 2025 caseload figures.
ICSID explained
ICSID is the World Bank Group centre for investment disputes. Its Convention, members, rules, caseload and outcomes from its own statistics.
How to read an arbitration case page
A field-by-field guide to ICSID case pages, the PCA case list, CAS award publication and the UNCTAD navigator, and what each one does not show.