Cross-border disputes can present a number of technical and practical challenges for appointed financial or accounting experts engaged to investigate issues, value assets or estimate losses for their clients. This article sets out some of those challenges.
Cross-border disputes can arise in many situations where parties, assets or operations are based in different jurisdictions or transactions or investments occur across national lines. Increasingly, this activity involves high-growth economies in emerging and frontier markets such as China, India, Brazil, former Soviet Union and Eastern bloc countries, and African nations. With emerging and frontier markets often comes a less developed or transparent economic, political and legal system compared with the developed markets of the investor or trading partner.
An obvious challenge for financial experts can involve foreign currency considerations. Economic and political uncertainties have continued to cause volatility in global currency markets and, as a result, exchange rates can have a significant impact on valuation and damages assessments.
This article was first published in The Australian Corporate Lawyer, Spring 2018, Volume 28 – Issue 3, pg 18-19.