Evolving the LCIA’s Services to Users 7 November 2023 Three years after the publication of the updated LCIA Arbitration Rules in October 2020 (LCIA Rules 2020), the administration of cases and the provision of other services by the LCIA continues to evolve with the introduction of a number of new measures. A revised Schedule of Costs will come into effect on 1 December 2023 and will apply to LCIA arbitrations registered on or after that date (2023 Schedule of Costs). The 2023 Schedule of Costs introduces a range of hourly charging rates for the Arbitral Tribunal, a new Emergency Arbitrator Special Fee and new hourly charging rates for the LCIA Secretariat (although the Registration Fee will remain unchanged). Fees of the Arbitral Tribunal may now be set by reference to hourly rates in a range from £250 to £650. When setting the maximum hourly rate in each case, the LCIA Court will continue to consider the overall complexity of the case and not simply the amount in dispute and may recommend that the maximum hourly rate in a particular case be capped to an amount lower than the top of the range. The ability of the LCIA Court to set arbitrator fees by reference to a range of available hourly charging rates reflects the LCIA’s broad caseload and offers the LCIA Court increased flexibility. The rise in the top rate (from £500 to £650) also ensures that arbitrators’ hourly charging rates in LCIA cases remain competitive. Commensurate with this increase in the hourly rate, the application fee for the appointment of an Emergency Arbitrator will be increased from £9,000 to £10,000 and the Emergency Arbitrator’s fee from £22,000 to £25,000. In line with the approach to arbitrators, tribunal secretary hourly charging rates may now be set by reference to a range from £100 to £250 per hour. Although the Registration Fee remains the same at £1,950, the LCIA Secretariat’s hourly charging rates will rise by 7%, reflecting increased costs due to inflation. A revised Schedule of Costs for mediations conducted under the LCIA Mediation Rules will also come into effect on 1 December 2023 and will apply to LCIA mediations commenced on or after that date. The 2023 Schedule of Costs for mediations will reflect the updates introduced in the 2023 Schedule of Costs. In order to provide greater clarity for users, revised terms and conditions for other services provided by the LCIA will also come into effect on 1 December 2023 and will apply to all new requests for such services on or after that date where the LCIA agrees to provide them in the proceedings. These are terms and conditions for (i) fundholding; (ii) the administration of and/or provision of specific services in UNCITRAL arbitrations; (iii) the holding of funds by way of security; and (iv) appointment only services in adjudication, expert determinations and ad hoc arbitrations. The revised terms and conditions broadly align these services with the approach to cases administered pursuant to the LCIA Rules. Given the challenging compliance and regulatory background to the broad range of services that the LCIA offers to users from multiple jurisdictions, as of 1 December 2023 the LCIA’s policy on receipt of funds in all cases has been reinforced. Accordingly, subject to the principles set out in Article 24A of the LCIA Rules 2020, the LCIA will only accept payments from an account held in the name of a party to the arbitration (i.e., Claimant(s) and Respondent(s) (Parties) or from an account held in the name of a person(s) or law firm(s) authorised to act on legal matters for the Party, and who is on the record in the arbitration. If payments are made from other accounts, the LCIA may, in its sole discretion, and without the need to state any reasons, return the payment to the account from which it was paid. The LCIA has also published an updated Guidance Note for Parties and Arbitrators integrating the LCIA's previous three Guidance Notes (Notes for Parties, Notes for Arbitrators and Notes on Emergency Procedures) and which reflects the new 2023 Schedule of Costs. The new, comprehensive Guidance Note offers parties, authorised representatives and arbitrators user-friendly guidance on points of “best practice” on the application of the LCIA Rules 2020. Director General of the LCIA, Professor Dr Jacomijn van Haersolte-van Hof comments: “This package of updates to the LCIA’s Schedule of Costs, the launch of terms and conditions and release of the comprehensive Guidance Note reflects the LCIA’s commitment to ensuring the best possible service for its users. The enhanced rates reflect the demand by users to adopt rates commensurate with the complexity of new cases and where the high stakes at issue justify such rates. The new terms and conditions will provide greater certainty and clarity as to the basis on which the LCIA offers other services to users. These changes reflect in part the reality of a stricter regulatory and compliance environment, which has impacted the LCIA and its users like all other businesses. All this has come at a busy time for the LCIA. Not only has the LCIA seen a healthy flow of new registrations this year, from an increased range of sectors and jurisdictions, but we will also introduce a new internal case management system early in the new year which will further improve the efficiency with which the LCIA manages its cases.” In order that users may review the 2023 Schedule of Costs, the new terms and conditions and the Guidance Note ahead of their release on 1 December 2023, PDF copies are available below for download. LCIA Arbitration Rules (effective 1 October 2020) including Schedule of Costs (effective 1 December 2023) LCIA Arbitration Rules (effective 1 October 2020) including Schedule of Costs (effective 1 December 2023) - Translation in Spanish LCIA Mediation Rules (effective 1 October 2020) including Schedule of Mediation Costs (effective 1 December 2023) LCIA Dispute Resolution Procedures (effective 1 December 2023) LCIA Guidance Note for Parties and Arbitrators For all enquiries, please contact: [email protected]