After more than 5 years of negotiations involving representatives from governments, business, civil society as well as legal counsel and arbitrators, the ICSID has released its new 2022 Rules and Regulations. The new 2022 Rules and Regulations came into effect on July 1, 2022.
The amendment is the most extensive in ICSID‘s history. Apart from modifications to the ICSID Arbitration Rules and ICSID Additional Facility Rules, the amendment has resulted in new ICSID Rules of Mediation and Fact Finding. The Mediation Rules may be used either independently or in conjunction with arbitration. The Fact-Finding Rules allow a committee to inquire into and report on relevant circumstances in the pre-dispute phase.
Among the main changes are, for instance, new provisions related to case management efficiency as well as new rules on expedited arbitration and provisions increasing transparency of the proceedings.
The ICSID Rules and Regulations are now available to a broader set of parties, accommodating in particular the need to have the possibility of a regional economic integration organization to be party to arbitration under the amended ICSID Additional Facility Rules.
Responding to the recent waves of criticism regarding third-party funding (TPF), the new rules incorporate a disclosure requirement applicable throughout the lifespan of arbitration proceedings. However, the new rules do not contain any regulation of TPF going beyond the disclosure requirement. As such, they are unlikely to impact the current practice of TPF. The Arbitration Rules also regulate the costs of the proceedings more extensively, including by incorporating regulation of security for costs.