HKIAC Administered Arbitration Rules get a face lift
The Hong Kong International Arbitration Centre (HKIAC) has unveiled its 2024 Administered Arbitration Rules (2024 Rules). These rules introduce measures and provisions to increase efficiency, address current trends in sustainable arbitration and provide a secure, streamlined and cost-effective environment for arbitration proceedings.
Key among the provisions is an enhanced focus on diversity (Article 9A). The 2024 Rules make clear that diversity should be one of the considerations when appointing the tribunal. The parties and co-arbitrators involved are also urged to consider diversity when appointing arbitrators. This provision demonstrates HKIAC's commitment to fostering varied and inclusive representation.
Adapting to current environmentally-conscious trends, consideration for environmental impact has been woven into Articles 13.1 and 34.4(f). These articles will now require tribunals to factor in environmental considerations while determining procedures for the conduct of the arbitration and deciding on the allocation of costs. This is a welcome step forward towards sustainable dispute resolution.
In view of the importance of data security, the 2024 Rules now include provisions pertaining to the implementation of robust information security measures (Articles 13.1 and 45A). Parties are encouraged to agree on, and the tribunal is required to provide directions for, measures that ensure the security of information. With the increasing volume of sensitive data involved in arbitration proceedings, including personal data and commercially discrete information, these steps are essential and timely.
With a view to promoting efficiency, the 2024 Rules have given tribunals the express powers to determine preliminary issues by bifurcating proceedings, conduct the arbitration in sequential stages, decide the stage of the arbitration at which any issue or issues shall be determined, and adopt any procedures to decide the case efficiently (Article 13.6). Tribunals shall also declare proceedings closed no later than 45 days from the last directed submissions, and the award shall be rendered no later than three months from the close of proceedings.
Overall, these changes present a holistic update of the HKIAC Administered Arbitration Rules with a clear focus on tribunal’s powers and duties to address key concerns that are important to the arbitration community.
