Arbitrator Disclosure Requirements

Therefore, arbitrators are encouraged to regularly confirm their disclosures through the DR Portal. In accordance with international best standards and practices, an arbitrator is required to disclose any fact or circumstance that, from the perspective of a reasonable third party, would give rise to reasonable doubts as to his or her impartiality or independence.1 Doubts are justified if a reasonable third party considers that it is likely that the arbitrator would rule on the case on the basis of factors other than the merits of the case.2 This is an ongoing duty: it applies before the arbitrator accepts an arbitral award, and then continuously throughout the proceedings as new facts and circumstances arise.3 Just as the duty of impartiality and independence is ongoing, so is the duty of disclosure. Most arbitration laws and rules provide for a requirement for continuous disclosure. AN ARBITRATOR MUST DEFEND THE DIGNITY AND INTEGRITY OF THE ARBITRATION OFFICE. An arbitrator has a responsibility to the parties, to the other parties to the proceedings and to the profession. An arbitrator should seek to recognize and deny any attempt by a party or its representative to use arbitration for purposes other than the fair and effective resolution of a dispute. II. AN ARBITRATOR SHOULD BE RESPONSIBLE FOR RESOLVING THE MATTER IN QUESTION. An arbitrator should accept an appointment only if he or she meets the requirements set out by the parties in the arbitration agreement with respect to professional qualifications.

An arbitrator must prepare prior to arbitration by reviewing statements or documents submitted by the parties. An arbitrator should refuse to serve or should withdraw from arbitration if he or she is physically or mentally unable to meet the reasonable expectations of the parties. Iii. An arbitrator must inform all parties of the arbitrator`s role and the rules of arbitration. The IBA has published guidelines on conflicts of interest in international arbitration. These guidelines, first published in 2004 and revised in 2014, codify international best standards and practices regarding the arbitrator`s disclosure obligation.28 Although they are not binding, they have influence and have relied heavily on them. For example, in a study by White & Case and Queen Mary University, 71% of respondents said they were aware of the IBA`s conflict policies (p. 35), and 60% thought the guidelines were «effective.» 29 The standard of disclosure is an objective standard.

Specifically, the «reasonable third party» test is an objective test. This results from both the IBA guidelines and the draft code. Courts and arbitral tribunals have also applied an objective standard of disclosure. An ICSID tribunal explicitly opted for the objective «reasonable person» test with respect to the disqualification of an arbitrator.6 An English court, in turn, found how similar the disclosure standards are under the UNCITRAL Rules and English common law, with the test being objective in both cases.7 Persons employed in the securities industry, should also indicate whether their undertaking creates a market for the securities at issue in the divested case and whether it has placed clients in the same or a similar investment. All arbitrators must determine whether they hold (or have held) a position in the relevant security/investment and disclose this information to FINRA. In making disclosure, arbitrators must consider all aspects of their professional and personal life and disclose any connection between the arbitrator, the parties and the disputed case, regardless of the distance they may appear.