The Ministry of Law is currently seeking feedback on the proposed Civil Law (Amendment) Bill 2016 which, if passed, will open the door for international businesses arbitrating disputes in Singapore to access funding tools available elsewhere. The draft legislation proposes overhauling current laws that restrict funding for dispute resolution proceedings to the parties involved, instead allowing for professional third-party funders to help underwrite proceedings in exchange for monetary payout – for example, through receiving a share of any awarded damages. Professional for-profit funders tend to support claimants in disputes and may be recommended to a client by a solicitor in Singapore so long as there is no financial benefit for the solicitor themselves, the legislation proposes. If the Bill is passed, subsidiary legislation is likely to provide limits on who or what is allowed to serve as a third-party funder in Singapore. The draft legislation is open for public review until 29 July.

Source: Asian Legal Business; Lexology