In recent years, arbitration in Finland has become widespread and has begun to be seen as an effective mechanism for resolving disputes between business partners. Although Finland is not as well-known internationally as an arbitration destination as other European countries, it has nevertheless managed to gain a reputation as a neutral location for the resolution of international disputes through arbitration. Recourse to international commercial arbitration in Finland means that the parties rely on the recognition and subsequent enforcement of the arbitral award in that country.
If you have a business conflict and you have decided to start arbitration in Finland, check out some of the local specifics below.
The system of sources constituting the legal basis for the implementation of international commercial arbitration in Finland is formed by international treaties and national legislation, in particular, the Arbitration Law. For those interested in resolving commercial disputes through arbitration in Finland, it is helpful to know that this law is compatible with the UNCITRAL Model Law. However, there are still some differences regarding:
- applicable law (no default clause);
- invalidity of the decision;
- interim measures of protection (not recognized by national law).
The arbitral tribunal must resolve the dispute in Finland on the merits of the dispute. The law also leaves open the question whether the dispute can be resolved, for example, in accordance with the UNIDROIT principles.
You can find out more information about the settlement of business disputes in Finland according to UNIDROIT during your consultation on international arbitration with our experts. Fill out the application form below and we will contact you.
To submit a dispute for consideration and resolution through international commercial arbitration, a number of mandatory conditions must be met. First, there is an arbitration agreement between the disputing parties with all the necessary components. Secondly, the competent arbitration institution to consider the dispute.
The main arbitration institution in Finland is the Arbitration Institute of the Chamber of Commerce, which deals with both internal affairs and the resolution of international disputes. The Institute has both a Finnish and an international council, which are authorized to determine the remuneration of the arbitrators in proportion to the value of the dispute.
Earlier this year, the Finnish Arbitration Rules were revised and amended to comply with international best practice. They now largely comply with the rules of leading international arbitration institutions, including provisions on emergency arbitrators, etc.
Legal advice on arbitration proceedings in Finland will help you better understand the nuances of the procedure.
The speed of consideration of disputes under the arbitration rules is a very important aspect when choosing an institution for conducting international arbitration. Finland shows a clear advantage in this respect. Thus, even before the introduction of the new rules, arbitration proceedings in Finland lasted 10 months on average. This is a very good indicator in comparison with other recognized institutions in the world, where the process can last on average from 1 to 2 years. At the moment, after the introduction of the new rules, it is expected that the arbitration procedure in Finland will take even less time and, accordingly, this should positively affect the cost of resolving the dispute in general.
When a business relationship involves a significant amount of cross-border transactions, the Paris-based International Court of Arbitration at the International Chamber of Commerce is often chosen.
The newly amended rules have created more comfortable conditions for the settlement of international disputes in Finland. They have proven to be very competitive internationally in terms of speed and cost effectiveness and more international business disputes are expected to be resolved in this jurisdiction. If you choose to start arbitration in Finland, do not hesitate to contact the IQ Decision UK professional team for qualified assistance. We provide legal assistance at all stages of international dispute resolution and offer services for pre-trial settlement of business disputes in Finland.