An arbitrator’s assets refer to any property or investments owned or controlled by the arbitrator. Full disclosure and proper management of arbitrator assets is crucial to maintaining impartiality.
Arbitrators must reveal all their assets to the parties involved before accepting an appointment. This transparency helps identify any potential conflicts of interest stemming from the arbitrator’s financial positions or ties.
Types of Assets Arbitrators Must Disclose
Arbitrators must disclose tangible and intangible assets including:
- Real estate properties
- Vehicles
- Investment accounts and holdings
- Business interests
- Intellectual property like patents and trademarks
- Personal relationships creating possible bias
Ongoing asset disclosures are also required if new potential conflicts emerge during arbitration.
Proper Management of Assets is Essential
In addition to disclosure, arbitrators must manage their assets in a way that avoids conflicts. This means not investing in companies or assets that could be impacted by their rulings.
If an unacceptable conflict of interest arises that cannot be resolved, the arbitrator must withdraw from the case entirely.
The Purpose of Arbitrator Asset Rules
The core purpose of arbitrator asset disclosure and management requirements is protecting impartiality. By being transparent and avoiding problematic investments, arbitrators can preserve the fairness of proceedings.
For parties on both sides to feel confident in a just outcome, stringent arbitrator asset protocols are an absolute must. Ethics cannot be compromised when resolving disputes.
