Private Law Theory

ABSTRACT
Third-party funding has become an established feature of international commercial arbitration, yet its regulation remains fragmented across jurisdictions. Legislative reforms in Nigeria, Singapore and Hong Kong have removed the traditional legal barriers of maintenance and champerty, while institutional rules, such as the 2021 ICC Rules and the 2025 SIAC Rules, provide for the disclosure of the existence and identity of third-party funders. However, other key issues, particularly security for costs, funder control, legal privilege and the recovery of funding costs, remain subject to differing national laws and arbitral discretion. This article examines the legal and regulatory frameworks governing third-party funding in Nigeria, Singapore, Hong Kong, Australia, Canada and England, with particular attention to the challenges arising from inconsistent regulation. It argues that regulation should focus on the specific risks associated with third-party funding rather than restrict the practice itself. In particular, it advocates mandatory disclosure of funder identity to prevent conflicts of interest, targeted disclosure of whether funding covers adverse costs, clear criteria for ordering security for costs, and proportionate regulation of funder conduct under the law of the arbitral seat. The article identifies Nigeria’s Arbitration and Mediation Act 2023 and the 2025 SIAC Rules as important models for developing a more coherent regulatory framework. It concludes that a targeted and proportionate approach can protect respondents, preserve arbitral independence and integrity, and maintain third-party funding as an important means of improving access to international commercial arbitration.

Ekuma, Chinonso, Third-Party Funding in International Commercial Arbitration: A Critical Analysis of Funding Procedures, Regulatory Frameworks and Emerging Legal Challenges (September 20, 2026).