Hong Kong International Arbitration Centre Updates Administered Arbitration Rules

The amendments in the 2024 Rules are mainly directed at upholding the efficiency and integrity of the arbitral process. Notable amendments include:

• Conflict of interest: The tribunal may take any measure necessary to avoid a conflict of interest arising from a change in party representation (Article 13.9). 
• Efficiency and integrity: The HKIAC may take any measure necessary to preserve the efficiency or integrity of the arbitration, including revoking an arbitrator appointment in exceptional circumstances (Article 13.10). 
• Single arbitration under multiple contracts: Where the HKIAC determines that a single arbitration under multiple contracts is properly commenced, parties are deemed to have waived their rights to designate an arbitrator (Article 29.2). This aligns with the consolidation of arbitrations process under Article 28.8.
• Time limits: The tribunal shall declare the proceedings, or relevant phase of the proceedings, closed within 45 days from the last directed substantive oral or written submissions (excluding cost submissions) and render an award within 3 months from the declaration of closure (Articles 31.1 and 31.2). 

New provisions are also introduced to reflect societal and technological developments, including:

• Diversity: The HKIAC is required, and parties and co-arbitrators are encouraged, to take diversity considerations into account when appointing or designating arbitrators (Article 9A). 
• Information security: The tribunal shall consider information security when adopting procedures for conducting the arbitration. The parties may agree on any reasonable information protection measures and the tribunal may make any relevant directions and order sanctions for breaches thereof (Articles 13.1 and 45A).
• Environmental impact: The tribunal shall consider environmental impact when adopting arbitral procedures, deciding whether arbitration costs are reasonable, and apportioning costs between parties (Articles 13.1 and 34.4(f)). 

Other notable amendments codify existing practices in HKIAC arbitration, including confirming that the tribunal may determine preliminary issues and bifurcate the proceedings (Article 13.6); and that emergency arbitrators may make interim orders pending issuance of their emergency decision (paragraph 10 of Schedule 4). 

The changes are set to strengthen Hong Kong's position as an important arbitration hub by enhancing efficiency of the arbitration regime and aligning with prevailing international best practices.