This Practice Note tracks the details of key awards and decisions issued by tribunals in investment treaty arbitration proceedings, principally those administered by the International Centre for the Settlement of Investment Disputes (ICSID). The Practice Note also covers relevant awards and decisions issued in proceedings conducted under the United Nations Commission on International Trade Law (UNCITRAL) Arbitration Rules and administered by other arbitral institutions such as the Arbitration Institute of the Stockholm Chamber of Commerce (SCC), the Permanent Court of Arbitration (PCA) and the International Court of Arbitration of the International Chamber of Commerce (ICC). Decisions of ad hoc Committees in ICSID annulment proceedings are also included. While there is no recognised system of precedent in investment treaty arbitration, previous decisions are often cited by parties during proceedings and referred to by arbitral tribunals in their decisions. This Practice Note only features awards and decisions published in 2022, although they may have, in some cases, been issued to the parties prior to 2022. The previous tracker is available here: Investment treaty

This Practice Note provides an introduction to investment treaty arbitration. Broadly, an investment treaty arbitration involves the resolution of (most commonly) a foreign investor’s claim against a respondent state for alleged breaches of investor protections contained in an investment treaty concluded between either two states or a group of states pursuant to an arbitration agreement contained within the investor-state dispute settlement provisions of the relevant treaty. ‘Investment treaty arbitration’ is sometimes contrasted with ‘international commercial arbitration’, and both forms of arbitration are sometimes referred to under the umbrella term ‘international arbitration’, see Practice Note: International arbitration—an introduction to the key features of international arbitration for consideration of the meaning of ‘international commercial arbitration’. Investment treaties Bilateral investment treaties (BITs) and multilateral investment treaties (MITs) are central to any consideration of investment treaty arbitration. Bilateral investment treaties A BIT is a treaty between two states by which each state agrees to afford rights and protections to investors from the other. Generally, a BIT will provide for the investor to have recourse

A closed-end, incorporated fund established to produce income through investing in other companies. They have a fixed number of shares, trade like stocks or exchanges and are regulated by the UK Investment Company Act 1940.

What are investment-grade, high yield and crossover bonds? Investment grade (IG) bonds refer to debt securities that carry an IG credit rating, which is anywhere from BBB and higher on the S&P and Fitch scales and Baa3 and higher on the Moody’s scale (for more information on credit ratings see Practice Note: Credit ratings). IG issuers are typically large blue-chip corporates (well-known, well-established, and well-capitalized companies) and often companies whose equity securities are listed on a major stock exchange. Other than sovereign debt of developed economies, IG securities are frequently seen as one of the safest types of income producing investments. However, because IG bonds are considered safe investments, the yields are lower than those of high yield (HY) bonds. Many institutional investors and pension funds have policies and mandates that require them to limit their bond investing to investments with, on average, lower default rates, such as IG bonds or government obligations. As a broad term, HY bonds refer to all bonds of issuers that

Investment-regulated pension schemes (IRPSs) are a particular category of registered pension schemes that are subject to additional controls on the asset classes that can be held as investments. They were introduced as a separate category of registered pension scheme by the Finance Act 2004 (FA 2004), as modified in advance of 6 April 2006 by the Finance Act 2006 (as announced by the Chancellor in the Autumn Statement on 5 December 2005). An IRPS could be either an occupational or a personal pension scheme, and the two categories of arrangement principally regarded as IRPSs are those arrangements commonly referred to as: • small self-administered schemes (SSASs) (a type of occupational pension scheme), and • self-invested personal pensions (SIPPs) (under which a member can have almost complete autonomy in determining the investments that are to be made) Unless they are entitled to transitional protection (see below), since 6 April 2006 IRPSs have been unable to invest directly or indirectly in ‘taxable property’ without severe tax charges. Acquiring an interest in ‘taxable property’ which is

A product specified in the FSA Regulated Activities Order.

FORTHCOMING CHANGE : On 22 June 2026, the FCA published consultation paper CP26/20, proposing new rules to strengthen consumer protection in the SIPP market. The proposals would introduce clearer, proportionate due diligence requirements for SIPP operators in relation to relevant third parties and investments, including core checks applying in all cases and additional checks for higher-risk investments. They would also establish a new Pension Scheme Money and Assets regime in COBS 19B for SIPP money and assets not already subject to the Client Assets Sourcebook (CASS), covering record-keeping, reconciliations, discrepancies and oversight of assets held by third parties. The consultation closed on 24 August 2026, and the FCA expects to publish its policy statement and final Handbook amendments in the first half of 2027. The proposals provide for a 12-month implementation period for the due diligence requirements and a two-year period for the new money and assets requirements, with a possible additional year for certain existing third-party relationships. For further information, see: Pensions weekly highlights—25 June 2026 — Personal pensions. Before

An investor will typically mean an individual citizen of the investor’s home state or a company incorporated in the investor’s home state. However, in the modern world of global citizens and multinational corporations, this issue can be complex. The definition of 'investor' will vary between BITs.

Background to the Investor Compensation Schemes Directive The Investor Compensation Schemes Directive (EC) 97/9 (ICSD) is one of two existing EU guarantee scheme directives. The other, the Deposit Guarantee Schemes Directive (DGSD) is discussed in Practice Note Deposit Guarantee Schemes Directive. Both directives require Member States to establish, respectively, depositor and investor protection schemes, offering minimum levels and scope of protection to customers of DGSD and ICSD covered firms. The ICSD requires Member States to set up one or more investor compensation schemes (ICSs) in its territory. Investment firms supplying investment services must belong to such a scheme. ICSs are intended to be a last resort safety net to protect investors against the risk of losses if an investment firm cannot repay money or return assets held on behalf of investors. They are not intended to cover investment risk: for example where an investor has bought stocks which subsequently fall in value. Until it withdrew from the EU, the UK met its obligations under the ICSD and the DGSD through the Financial Services Compensation Scheme

Organisations such as the Investment Association (IA), the lifetime-savings-association'>Pensions and Lifetime Savings Association (PLSA) (formerly the National Association of Pension Funds (NAPF), Institutional Shareholder Services (ISS) and Pensions & Investment Research Consultants (PIRC), representing the interests of large institutional shareholders.

Every investor in a equity'>private equity fund commits to investing a specified sum of money in the fund partnership over a specified period of time to finance investments and pay expenses. The commitment is usually split into a loan element (typically 99.99% of total commitments) and a capital element (typically 0.01% of total commitments).

A private equity transaction, ie a venture capital, buyout or development capital transaction, will involve the investment by a private equity (or venture capital) fund investor (the investor) in the securities, eg shares and loan notes, of a private limited company incorporated in England and Wales (Company). In a venture capital or development capital transaction, the investor will invest directly in securities of the Company/its group, becoming a shareholder in the Company alongside the founders of the business. In a management buyout transaction (MBO), the investor will also invest in securities in a newly established Company (or group of companies) which will be formed to carry out the acquisition of a target company or business (target). In such transactions, the investor will hold shares in the Company alongside target management, who post-acquisition of the target will also hold securities in the Company/its group. While post-investment much of the day to day management and operation of the Company/its group will be left to the management team or founders of the relevant business, ie in an MBO