HKIAC releases updated Administered Arbitration Rules (effective 1 June 2024)

On 3 May 2024, the Hong Kong International Arbitration Centre (“HKIAC”) published the 2024 Administered Arbitration Rules (“2024 Rules”), which will come into force on 1 June 2024. This follows on from a public consultation launched by the HKIAC earlier this year to seek comments from HKIAC arbitration users on its proposed amendments to the 2018 Administered Arbitration Rules. 

The refinements made in the 2024 Rules reflect evolving social norms and technological advancements in the global arbitration community, and also aim to enhance the efficiency of HKIAC arbitrations with respect to time and costs, in order to ensure that Hong Kong and the HKIAC respectively remain the jurisdiction and arbitral institution of choice for international parties.

Key Amendments

1. Considerations on Diversity in Appointing Arbitrators, Environmental Impact and Information Security

Staying attuned to shifting social norms, newly drafted Article 9A encourages parties in arbitral proceedings and co-arbitrators to “take into account considerations of diversity” when choosing an arbitrator. By the same token, the HKIAC must also take diversity into consideration when exercising its authority of appointment.

In line with the uptake on ESG initiatives globally, the arbitral tribunal is explicitly required to take environmental impact into account when adopting suitable procedures (Article 13.1). It may also consider “any adverse environmental impact arising out of the parties’ conduct” when determining the reasonableness of costs of the arbitration and whether and how to apportion costs (Article 34.4).

Meanwhile, information security takes the centre stage with requirements that the arbitral tribunal and parties consider information security (Article 13.1 and 45A). Parties can agree on “any reasonable measures to protect information shared, stored, or processed in relation to the arbitration”. The arbitral tribunal may, after considering the parties’ views, give directions to parties on such…