ARBITRATION IN FINLAND - The Arbitration Institute of the Finland Chamber of Commerce (FAI)

Arbitration in a Nutshell in Finland

The Arbitration Institute of the Finland Chamber of Commerce (FAI) provides both arbitration and mediation services for resolving domestic and international disputes. The FAI itself does not resolve disputes but administers proceedings in accordance with its arbitration and mediation rules. In 2023, the FAI received 71 requests for arbitration under its rules.

Finnish Arbitration Act

The Finnish Arbitration Act ("FAA") is influenced by the UNCITRAL Model Law, and it takes into account the requirements of the New York Convention. The Act is currently under review, with amendments expected in the near future to reflect the latest legal and business developments impacting arbitration.

The FAA has broad territorial applicability, covering disputes between Finnish parties as well as cases where parties have agreed to arbitrate in Finland, even if they are international parties.

When Arbitration is Used

Arbitration is based on a contractual agreement between the parties, which must be in written form. The requirement for written form is satisfied if the arbitration clause is included as a term in the contract or in the correspondence between the parties. Therefore, if parties have agreed in writing to resolve disputes through arbitration, the matter cannot be brought before a general court if the respondent objects before filing a response to the claim.

Role of the FAI

The FAI is an impartial institution responsible for administering domestic and international arbitrations. It provides two sets of rules: the Arbitration Rules and the Rules for Expedited Arbitration. The FAI can also support ad hoc arbitrations. In such cases, a party must submit a written application to the FAI for the appointment of the arbitral tribunal. Before making an appointment, the FAI allows the respondent an opportunity to be heard. The FAI rules also allow for Emergency Arbitration.

Filing Fees for FAI Proceedings

The fees for FAI arbitration proceedings are as follows:

• EUR 3,000 per payment for cases conducted under the Arbitration Rules or the Rules for Expedited Arbitration.
• EUR 3,000 for the appointment of arbitrators in ad hoc arbitrations.
• EUR 25,000 as the Application Deposit for Emergency Arbitrator proceedings.

These fees are applicable from 2024.

History of the FAI

The history of the FAI dates back over 100 years. In 1909, the Vaasa Tradesmen’s Association proposed the establishment of an arbitration board in Helsinki. By 1910, the rules for the new arbitration institution were drafted, and in 1911, the Helsinki Arbitration Board of Commerce, Industry and Shipping began operations.

The most recent revision of the Arbitration Rules and Rules for Expedited Arbitration of the FAI came into force on 1 January 2024.

***

Our specialist on this field is Liene Krumina and Oscari Seppälä. Please contact for further information. 

** The article is for information and not as a legal advice.