Taiwan Depository & Clearing Corporation

Given the government's policy to promote financial technology innovation, the Financial Supervisory Commission (FSC) approved the establishment of Fund Rich Securities Ltd., which is a joint venture between the Taiwan Depository & Clearing Corporation (TDCC) and Taipei Exchange (TPEx). Fund Rich Securities will add to the diversity of online mutual fund platforms, and its preparatory meeting and the first founders meeting were held on November 9.

TDCC President Mr. Sherman Lin stressed that customer-centered financial technology is re-shaping the financial services industry. Also, an online mutual fund platform must differentiate itself from existing channels, and contribute to the diversity of the distribution network by bringing technological innovation into the service process, connecting fund companies and investors, and ultimately creating a win-win situation for the market in order to survive the challenges ahead. Statistics of the Taiwan Central Bank and OECD indicate that mutual funds, on average, only accounted for 1.41% of financial assets held by Taiwanese households in 2013, way below that of 12.6% in the US and Canada, or 4.7% in Japan and 4.1% in Korea in the same period. In light of the substantial room for growth in Taiwan’s mutual fund market, the new platform of Fund Rich Securities will provide various educational information on fund investment, and broaden the collaboration with existing distribution channels to encourage utilization of the instrument, and eventually drive growth in the mutual fund market.

Hopefully Fund Rich Securities will build a new distribution platform that offers one-stop shopping for reasonable fees, and features convenient, safe and reliable transactions, as well as objective information to serve investors in Taiwan.