CONSEQUENCES OF THE ABSENCE OF REGULATION OF THIRD PARTY FUNDING IN COMMERCIAL ARBITRATION IN ECUADOR

Abstract

It is a fact that there is no express regulation regarding the TPF in Ecuador and in several countries of the world. This absence has led to various arbitration experts raising issues that may arise when using this method. On the other hand, there is another current that proposes that establishing strict regulation would limit the development of the TPF. However, after analyzing the positions and problems regarding the TPF, this paper proposes that it would be more beneficial and efficient to regulate the TPF in the regulations of each arbitration center, through general recommendations that do not establish too many barriers to the operation of this method. Ecuador has a legal system that is friendly to the TPF, since this method is not contrary to public order, and the parties can act under the principle of autonomy of the will in the absence of an express prohibition.