Civil Law (Third-Party Funding) Regulations 2017

Status:

Published in Subsidiary Legislation Supplement
on 24 Feb 2017

No. S 68

Civil Law Act

(CHAPTER 43)

Civil Law (Third-Party Funding)
Regulations 2017

In exercise of the powers conferred by section 5B(8) of the Civil Law Act, the Minister for Law makes the following Regulations:

Citation and commencement

1. These Regulations are the Civil Law (Third-Party Funding) Regulations 2017 and come into operation on 1 March 2017.

Definitions

2. In these Regulations, unless the context otherwise requires —

“arbitration agreement” has the same meaning as in section 2A of the International Arbitration Act (Cap. 143A);

“award” has the same meaning as in section 2 of the International Arbitration Act;

“foreign award” has the same meaning as in section 27 of the International Arbitration Act;

“international arbitration proceedings” means the proceedings of an arbitration which is international within the meaning of section 5 of the International Arbitration Act.

Prescribed dispute resolution proceedings

3. For the purposes of section 5B(1) of the Act, the following classes of proceedings are prescribed dispute resolution proceedings:

(a)	international arbitration proceedings;
(b)	court proceedings arising from or out of or in any way connected with international arbitration proceedings;
(c)	mediation proceedings arising out of or in any way connected with international arbitration proceedings;
(d)	application for a stay of proceedings referred to in section 6 of the International Arbitration Act (Cap. 143A) and any other application for the enforcement of an arbitration agreement;
(e)	proceedings for or in connection with the enforcement of an award or a foreign award under the International Arbitration Act.

Qualifications for “qualifying Third‑Party Funder”

4.—(1) For the purposes of the definition of “qualifying Third‑Party Funder” in section 5B(10) of the Act, the qualifications and other requirements that a qualifying Third‑Party Funder must satisfy and continue to satisfy are the following:

(a)	the Third‑Party Funder carries on the principal business, in Singapore or elsewhere, of the funding of the costs of dispute resolution proceedings to which the Third‑Party Funder is not a party;
(b)	the Third‑Party Funder has a paid‑up share capital of not less than $5 million or the equivalent amount in foreign currency or not less than $5 million or the equivalent amount in foreign currency in managed assets.

(2) In this regulation, “managed assets”, in relation to a Third‑Party Funder, means all of the following:

(a)	moneys and assets contracted to, drawn down by or under the discretionary authority granted by investors to the Third‑Party Funder and in respect of which it is carrying out fund management;
(b)	moneys and assets contracted to the Third‑Party Funder and under the non‑discretionary authority granted by investors to the Third‑Party Funder, and in respect of which the Third‑Party Funder is carrying out fund management;
(c)	moneys and assets contracted to the Third‑Party Funder, but which have been sub‑contracted to another party and for which the other party is carrying out fund management, whether on a discretionary authority granted by investors or otherwise.

(3) For the purposes of paragraph (2), moneys and assets are contracted to a Third‑Party Funder if they are the subject matter of a contract for fund management between the Third‑Party Funder and its investors.

Made on 21 February 2017.

NG HOW YUE

Permanent Secretary,
Ministry of Law,
Singapore.

[LAW32/006/070 Vol. 3; AG/LEGIS/SL/43/2015/1 Vol. 1]

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