Third-Party Funding: EU Parliament’s Proposals for Regulation and their Implications for Arbitration28 October 2022 By Marc D. Veit, Robert Denison
The EU Parliament has proposed far-reaching regulations affecting third-party funding of EU-seated claims. The regulations, if implemented, could make third-party funding in the EU more expensive or even inaccessible in some circumstances, and could go as far as to impact intra-group company loans granted for the purpose of pursuing litigation or arbitration. To avoid the impact of the proposed rules, parties may wish to consider jurisdictions outside the EU as their arbitral seat of choice.
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