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SIAC’s new Investment Arbitration Rules – another step forward for funding in Asia

On 1 January 2017, the Singapore International Arbitration Centre (SIAC) introduced the first edition of its Investment Arbitration Rules. Amongst the innovations, the Rules recognise that Third Party Funding (TPF) arrangements exist and confirm that Tribunals have the power to obtain information concerning such arrangements. In this post, Susanna Khouri, Oliver Gayner and Nathan Landis of IMF Bentham share their perspectives on the developments.

What insolvency practitioners need to know about small claim and ‘seed’ funding

Claim value is unquestionably a key factor in the funding decision. A $1 million claim can be as complex and expensive to run as a $5 million claim. As claim value moves below $1 million it is likely to be less commercially viable to fund. An inflection point is reached where the costs and risks approach or exceed potential recoveries. In the insolvency context, Court approval, if required, may depend upon the Insolvency Practitioners demonstrating that pursuing the claim is in the creditors’ interests. To that end Courts have regard to claim value and likely return to creditors .

Queensland introduces Class Action legislation

Earlier this month, the Queensland Parliament enacted legislation to allow class actions to be commenced in the Supreme Court of Queensland. The new regime largely adopts class action procedures already in place in other jurisdictions. IMF Associate Investment Manager, Alexandra McVay, details more about the new regime.

Federal Court Makes First Common Fund Order

On 26 October 2016 the Full Federal Court made its first potential "common fund order" in the class action Money Max Pty Ltd (Trustee) v QBE Insurance Group Limited. Provided the funder, applicant and solicitors for the applicant undertake to comply with the court sanctioned funding terms, the Court will make orders, including that the applicant and all group members pay the funder a Court approved funding fee from any recoveries.