With the aim of improving efficiency, security and integrity of arbitration proceedings, the Hong Kong International Arbitration Centre (“HKIAC”) has released its Arbitration Rules. Some of the key changes are as follows: • In order to deal with potential conflict of interest issues, the tribunal has a new power to exclude a party’s proposed legal representatives (Article 13.9)• The HKIAC is given the express power, in exceptional circumstances, to revoke the appointment of an arbitrator who is unable to fulfil their duties (Article 13.10)• The HKIAC has the express power, before the constitution of the tribunal, to suspend or cease to administer an arbitration if deposits for costs are not paid (Article 41.4)• Arbitrator diversity considerations are to be taken into account by the HKIAC when appointing arbitrators (Article 9A).• The tribunal is required to take into account, during proceedings, environmental impact and information/data security must be taken into account (Article 13.1), with the tribunal having new express powers in the area of information security (Article 45A).• Emergency arbitrators are given express powers to be able make preliminary or interim orders pending the issuance of their emergency decision (paragraph 10 of Schedule 4). The new provision concerning information security is welcomed, and expected to be followed by other arbitration centres in time. Article 45A states that “The parties may agree on any reasonable measures to protect information shared, stored, or processed in relation to the arbitration … The arbitral tribunal may, after consulting with the parties, give directions to the parties to protect the security of any information shared, stored, or processed in relation to the arbitration, taking into account the circumstances of the case … The arbitral tribunal may, after consulting with the parties, make a decision, order or award in respect of any breach of the information security measures agreed by the parties or directed by the arbitral tribunal.” It remains to be seen how technical the tribunal will become in this area, however it seems that opportunities will arise for the more technically save amongst us. The new rules continue to place to Hong Kong at the forefront of international dispute resolution. They have been welcomed by the global dispute resolution community.
With the aim of improving efficiency, security and integrity of arbitration proceedings, the Hong Kong International Arbitration Centre (“HKIAC”) has released its Arbitration Rules. Some of the key changes are as follows: • In order to deal with potential conflict of interest issues, the tribunal has a new power to exclude a party’s proposed legal representatives (Article 13.9)• The HKIAC is given the express power, in exceptional circumstances, to revoke the appointment of an arbitrator who is unable to fulfil their duties (Article 13.10)• The HKIAC has the express power, before the constitution of the tribunal, to suspend or cease to administer an arbitration if deposits for costs are not paid (Article 41.4)• Arbitrator diversity considerations are to be taken into account by the HKIAC when appointing arbitrators (Article 9A).• The tribunal is required to take into account, during proceedings, environmental impact and information/data security must be taken into account (Article 13.1), with the tribunal having new express powers in the area of information security (Article 45A).• Emergency arbitrators are given express powers to be able make preliminary or interim orders pending the issuance of their emergency decision (paragraph 10 of Schedule 4). The new provision concerning information security is welcomed, and expected to be followed by other arbitration centres in time. Article 45A states that “The parties may agree on any reasonable measures to protect information shared, stored, or processed in relation to the arbitration … The arbitral tribunal may, after consulting with the parties, give directions to the parties to protect the security of any information shared, stored, or processed in relation to the arbitration, taking into account the circumstances of the case … The arbitral tribunal may, after consulting with the parties, make a decision, order or award in respect of any breach of the information security measures agreed by the parties or directed by the arbitral tribunal.” It remains to be seen how technical the tribunal will become in this area, however it seems that opportunities will arise for the more technically save amongst us. The new rules continue to place to Hong Kong at the forefront of international dispute resolution. They have been welcomed by the global dispute resolution community.