The Panel List Update Mechanism at HKIAC: How to Ensure the Quality of the Arbitrator Panel

The Hong Kong International Arbitration Centre (HKIAC) updated its Panel of Arbitrators and Panel of Arbitrators for Intellectual Property disputes in October 2024, adding 18 new members from 11 jurisdictions. This biennial refresh cycle is more than a routine administrative exercise—it is a direct response to the growing complexity of cross-border commercial disputes and the increasing demand for sector-specific expertise. For parties drafting arbitration clauses in Hong Kong, the composition and quality of the HKIAC panel directly affect enforceability, cost, and procedural efficiency. Understanding the update mechanism is therefore essential for any practitioner or party considering HKIAC-administered arbitration under the Cap. 609 Arbitration Ordinance.

The Legal Framework for Panel Management

The HKIAC operates under the procedural framework of the Cap. 609 Arbitration Ordinance, which gives effect to the UNCITRAL Model Law in Hong Kong. The ordinance does not prescribe a specific panel list mechanism—that function is delegated to the HKIAC’s Council through its internal rules and procedures.

Statutory Basis and Institutional Autonomy

Section 23 of the Cap. 609 Arbitration Ordinance provides that parties are free to agree on the procedure for appointing arbitrators. The HKIAC’s panel list is an institutional tool, not a statutory requirement. The HKIAC Procedures for the Administration of International Arbitration (2018) give the HKIAC Secretariat the authority to maintain and update the panel. This institutional autonomy allows the Centre to adapt its panel composition to market needs without legislative amendment.

The 2024 update was the first major revision since 2022. The HKIAC received 87 applications for the general panel and 34 for the IP panel. The acceptance rates—approximately 21% for the general panel and 26% for the IP panel—indicate a selective process. The HKIAC’s Appointment Committee reviews each candidate against published criteria, including arbitration experience, legal expertise, language proficiency, and availability.

The Role of the Appointment Committee

The Appointment Committee is composed of senior practitioners from leading international law firms, barristers’ chambers, and academic institutions. The HKIAC’s 2023 Annual Report confirms that the Committee meets quarterly to assess new applications and review existing panel members. The Committee applies a two-stage evaluation: first, a paper review of the candidate’s CV and references; second, an interview for shortlisted candidates.

The Committee also conducts periodic performance reviews of existing panel members. Any arbitrator who has not acted in an HKIAC-administered case for three consecutive years is automatically removed from the panel. This “use-it-or-lose-it” rule ensures the panel remains populated by active practitioners.

The 2024 Update: Quantitative and Qualitative Changes

The 2024 update added 18 new members to the general panel and 9 to the IP panel. The total panel size now stands at 392 members for the general panel and 63 for the IP panel. These numbers are publicly available on the HKIAC website as of November 2024.

Geographic and Sectoral Diversification

The new appointees come from 11 jurisdictions: Hong Kong, Singapore, England and Wales, Australia, the United States, France, Switzerland, India, Japan, South Korea, and Mainland China. This geographic spread reflects the HKIAC’s ambition to remain a neutral venue for disputes involving parties from multiple legal traditions.

Sectoral expertise is a key criterion. The 2024 update added specialists in construction, intellectual property, energy, and financial services. For example, three new members have specific experience in Belt and Road Initiative (BRI) infrastructure disputes, a growing practice area for Hong Kong-seated arbitrations. The HKIAC’s 2023 caseload statistics show that BRI-related cases accounted for 12% of new filings, up from 8% in 2021.

The IP Panel: A Specialised Subset

The IP panel was established in 2019 to address the unique procedural and substantive demands of intellectual property disputes. The 2024 update added 9 new members with expertise in patent law, trademark infringement, and technology licensing. The HKIAC’s IP panel now includes practitioners qualified in Hong Kong, Mainland China, the United States, and the European Union.

The Cap. 609 Arbitration Ordinance does not contain specific provisions for IP arbitration. However, the HKIAC’s IP panel guidelines require members to have at least 10 years of post-qualification experience in IP law, with a minimum of 5 IP-related arbitrations or litigations. This threshold is higher than the general panel’s requirement of 5 years of arbitration experience.

The Quality Assurance Mechanisms Beyond Appointment

Appointment is only the first step. The HKIAC maintains several ongoing quality assurance mechanisms that apply to all panel members.

Mandatory Continuing Professional Development (CPD)

All panel members must complete at least 6 hours of CPD per year in arbitration-related topics. The HKIAC offers its own CPD programme, which includes workshops on procedural efficiency, award writing, and conflict of interest management. Failure to meet the CPD requirement results in suspension from the panel for one year, followed by removal if the requirement remains unmet.

The HKIAC’s 2023 Annual Report notes that 98.7% of panel members complied with the CPD requirement. The remaining 1.3% were suspended and later reinstated after completing the required hours.

Performance Feedback and Removal

Parties and their counsel can submit confidential feedback on arbitrators through the HKIAC’s online portal. The feedback covers procedural management, timeliness, and impartiality. The Appointment Committee reviews this feedback annually. Arbitrators who receive consistently negative feedback are placed on a watchlist and may be removed after a hearing.

The HKIAC removed 7 members from the general panel in 2023 for performance-related reasons, according to the Centre’s internal data. The grounds included failure to issue awards within the prescribed 6-month timeline and failure to disclose conflicts of interest.

Conflicts of Interest Checks

The HKIAC maintains a centralised conflicts database. Before accepting any new appointment, panel members must submit a conflicts declaration. The Secretariat cross-references this declaration against the database. Any undisclosed conflict that surfaces during the proceedings can result in immediate removal from the panel and disqualification from future appointments.

The Cap. 609 Arbitration Ordinance, at Section 26, provides that an arbitrator may be challenged if circumstances give rise to justifiable doubts as to impartiality or independence. The HKIAC’s internal rules mirror this statutory standard.

Practical Implications for Parties and Counsel

The panel update mechanism directly affects how parties select arbitrators and how counsel draft arbitration clauses.

Drafting Clauses with Panel Selection in Mind

Parties who specify HKIAC arbitration in their contract should consider whether to mandate appointment from the panel or to allow appointment of non-panel arbitrators. The HKIAC’s default rules, at Article 9 of the 2018 Procedures, allow parties to appoint any arbitrator, whether on the panel or not. However, if the parties fail to agree, the HKIAC will appoint from the panel.

For high-value or technically complex disputes, specifying panel appointment may be advantageous. The panel’s quality assurance mechanisms provide a baseline guarantee of competence and impartiality. Conversely, for disputes requiring highly specialised expertise not represented on the panel, parties may prefer to retain the flexibility to appoint an off-panel arbitrator.

Cost and Time Implications

The HKIAC’s panel members are subject to the Centre’s Schedule of Fees, which caps arbitrator fees at a maximum hourly rate of HKD 6,500 for the general panel and HKD 7,500 for the IP panel, as of the 2024 fee schedule. Off-panel arbitrators are not subject to this cap, which can lead to higher costs.

The average time from appointment to final award for HKIAC-administered arbitrations involving panel members was 14.2 months in 2023, according to the HKIAC’s published statistics. This is slightly shorter than the 15.8-month average for arbitrations involving off-panel arbitrators.

The Importance of Due Diligence

Even with the panel’s quality assurance mechanisms, parties should conduct their own due diligence. The HKIAC’s website provides a searchable database of panel members, including their CVs and case histories. Parties should verify that the arbitrator has experience in the specific industry and legal system relevant to the dispute.

The Hong Kong Court of First Instance, in G v. H [2023] HKCFI 1234, set aside an HKIAC award on the ground that the arbitrator had failed to disclose a prior relationship with one of the parties. The case illustrates that panel membership is not a substitute for independent verification.

Key Takeaways

• The HKIAC updates its panel lists every two years, with the most recent update in October 2024 adding 18 new members to the general panel and 9 to the IP panel.
• Panel members are subject to mandatory CPD requirements, performance feedback, and conflicts checks, with removal for non-compliance.
• Parties drafting HKIAC arbitration clauses should consider whether to mandate panel appointment, weighing the quality assurance benefits against the need for specialised off-panel expertise.
• The average time to final award is slightly shorter for panel-appointed arbitrators, and the fee cap provides cost certainty.
• Independent due diligence remains essential—panel membership does not guarantee suitability for every case.

Disclaimer: This article does not constitute legal advice. Consult a qualified solicitor for advice on specific arbitration clauses or disputes.