The 2024 HKIAC Rules and ICCA Congress 2024: A Leap Forward

14 May 2024

The HKIAC announced the release of the new 2024 Administered Arbitration Rules (the "2024 Rules"), which will take effect on 1 June 2024. The latest amendments aim to enhance time and cost efficiency, introduce considerations for diversity and environmental impact, and strengthen information security.

In the ever-evolving landscape of international arbitration, the Hong Kong International Arbitration Centre ("HKIAC") has taken a significant leap forward with the introduction of its 2024 Rules. The 2024 Rules were announced on 3 May 2024 as Hong Kong was gearing up to host the 26th Congress of the International Council for Commercial Arbitration ("ICCA Congress 2024") which took place from 5-8 May 2024. These rules, which come into effect on 1 June 2024, reflect HKIAC's commitment to providing an arbitration framework that is both modern and responsive to the needs of global users.

The 2024 Rules introduce several innovative provisions that are designed to streamline the arbitration process and enhance procedural efficiency. The key highlights include:

Diversity in Arbitration: A groundbreaking provision encourages the consideration of diversity when appointing arbitrators, aligning with HKIAC's commitment to the ERA Pledge for Equal Representation in Arbitration (Art. 9A).
Information Security: Tribunals and parties are now required to consider information security measures when adopting procedures for the conduct of the arbitration, with tribunals empowered to sanction breaches (Arts. 13.1; 45A).
Environmental Considerations: Tribunals and parties are required to consider environmental impact when adopting suitable procedures in the conduct of the arbitration, which may influence costs allocation (Arts. 13.1; 34.4 (f)).
Efficiency and Integrity: The HKIAC may take any measure to preserve the efficiency and integrity of arbitration, including the power to revoke the appointment of an arbitrator in exceptional circumstances (Art. 13.10).
Tribunal Powers:
- The tribunal may determine preliminary issues or adopt procedures to decide the case efficiently (Art. 13.6).
- The tribunal may take any measure to avoid a conflict of interest arising from a change in party representation, including by excluding the proposed new party representatives (Article 13.9).
- Tribunals shall declare the close of proceedings no later than 45 days from the last directed submissions (excluding costs submissions) (Art. 31.1).
- Emergency arbitrator has the power to make preliminary or interim orders before rendering the emergency decision (paragraph 10 of Schedule 4).

These changes, among others, not only codify HKIAC's existing practices but also introduce new provisions reflecting global trends and social norms.

Running parallel to the introduction of the 2024 Rules was the ICCA Congress 2024, themed "International Arbitration: A Human Endeavour". The Congress brought together the largest gathering of business professionals in Hong Kong in recent years. The panels led by distinguished speakers explored the impact of human nature and behaviour on international arbitration, as well as how arbitration affects individuals and communities.

The simultaneous unveiling of the 2024 Rules and the hosting of the ICCA Congress 2024 in Hong Kong demonstrate Hong Kong's continued commitment to advancing the practice of international arbitration as well as remaining at the forefront of arbitral innovation and efficiency.