The International Centre for Settlement of Investment Disputes (ICSID) has published the 2022 ICSID Rules and Regulations for resolving international investment disputes, which come into effect on July 1, 2022.
The updated rules for arbitration, mediation, conciliation, and fact-finding are the outcome of over 5 years of collaboration with State officials, legal counsel, adjudicators, businesses representatives, and civil society. They incorporate innovations designed to make ICSID cases more efficient for parties, to broaden access to ICSID’s facilities and services, and to ensure greater public transparency in the conduct and outcome of proceedings.
This is the first amendment to the ICSID rules since 2006, and the most extensive modernization of ICSID procedures in the Centre’s history.
Innovations introduced in the 2022 Rules and Regulations include:
- Numerous measures designed to make cases more efficient, such as mandatory case management conferences and precise deadlines for key steps in ICSID procedures. New expedited arbitration rules will also be available to parties, which reduce case times in half.
- The arbitration rules further enhance the transparency of ICSID orders, decisions, and awards, while also assisting parties in identifying confidential information and specifying that protected personal information cannot be publicly disclosed.
- A broader range of parties will have access to ICSID’s specialized rules and services. The ICSID Additional Facility—originally established in 1978—is now available for arbitration and conciliation proceedings where one or both disputing parties are not an ICSID Member State or a national of one. This contrasts with arbitration and conciliation under the ICSID Convention, which are only available to Member States and their nationals.
- Regional Economic Integration Organizations (REIOs)—such as the European Union—may also be a party to proceedings under the amended Additional Facility Rules. This accommodates international investment agreements that are signed by an REIO on behalf of regional entities.
- Entirely new rules for mediation and fact-finding are also offered at ICSID. These provide parties with a time and cost-effective means to seek an amicable settlement to disputes—and may be used on their own or in conjunction with an arbitral proceeding.
- For the first time, the disclosure of third-party funding is required throughout the life of a case to avoid conflicts of interest that may arise out of such financing arrangements.
ICSID is publishing extensive guidance notes on each aspect of the amended rules on its website and will provide training and further information in person and virtually. These resources will be shared on LinkedIn, Twitter, and the ICSID newsletter as they become available.