NEWSLETTER-2017

178 NEWSLETTER 2017 Regulatory Matters Under the subject of regulatory matters, the Task Force initially focuses on the arbitrability of disputes on regulatory breaches. As regulatory matters are often cause for public policy concern, they are mostly brought before the national courts. Although claims on statu- tory provision breaches involving public rights and third part interests, for example, in securities law, had made a positive impact on the ap- plication of arbitration, the arbitrability of stated matters still varies from jurisdiction to jurisdiction. The Task Force states that arbitra- tion is generally not considered as an appropriate dispute resolution mechanism as to the breach of regulatory provisions by financial institutions, but provides a reliable forum for civil consequences of the stated actions. International Financing On international financing, the Task Force finds that arbitration is favored over litigation if a party or an asset is located in an area with less reliable courts, or parties have failed to make a choice of law 5 . The project finance is found to be the most arbitration-friendly area as it involves complex disputes that would be better solved by experienced arbitrators in that field. Islamic Finance Regarding the disputes of Islamic Finance, the Task Force un- derlines the need for simultaneous compliance with sharia and secu- lar laws of financial intermediation. The developments made in this field are noted as the establishment of International Islamic Center for Reconciliation and Mediation 6 based in Dubai, UAE and Kuala Lumpur Regional Centre for Arbitration 7 with its arbitration rules for 5 Charles Nairac / Jean-François Adelle, “ Using Arbitration to Resolve Internation- al Financing Disputes ”, Kluwer Arbitration Blog, accessed at: http://kluwerarbi- trationblog.com/2016/12/23/using-arbitration-to-resolve-international-financing- disputes/, Date of Access: 12.02.2017. 6 The arbitration procedure of International Islamic Center for Reconciliation and Arbitrationmay be accessed at: http://iicra.com/en/misc_pages/detail/47025a8fda , Date of Access: 13.02.2017. 7 The Arbitration Rules of Kuala Lumpur Regional Center for Arbitration