Taiwan Depository & Clearing Corporation

In response to the policy aimed at enhancing the efficiency of payment and clearing operations for mutual funds and promoting the competitiveness of the domestic fund market. The Financial Supervisory Commission (FSC) has instructed TDCC to establish the "Onshore Fund Centralized Clearing Platform" to standardize and automate clearing and delivery operations in the domestic fund market. On February 24th, 2023, the FSC revised the "The Promotion Plan for Full Functions of Trust Services" to include the onboarding of the Onshore Fund Centralized Clearing Platform by investment trust businesses before the end of 2023 as an additional scoring item in the plan. Capital Fund is the first to sign a contract with TDCC’s Onshore Fund Centralized Clearing Platform.

According to Ming-hui Chen, the CEO of Capital Fund, the Onshore Fund Centralized Clearing Platform will change the current information and cash flows between investment trusts and sales institutions from many-to-many to many-to-one or one-to-many. By standardizing and automating operations, it can reduce operational risks and manpower costs for companies and improve market efficiency. Therefore, they fully support and call on related companies to participate.

TDCC's President Te-Hsiang Chen, said that the clearing platform-related regulations have been established, and the platform's services will officially launch by the end of June 2023, with operational testing available for participating companies starting in April. To encourage investment trust businesses to actively participate, TDCC has launched an "Early Bird Discount" program. As long as investment trust businesses complete the signing of the contract with TDCC and onboard the platform before the end of this year, they will enjoy free use of the clearing platform for the next two years. They can also use it as a scoring item when applying for FSC's " The Promotion Plan for Full Functions of Trust Services " next year and receive additional measures, such as increasing the limit of fund files submitted for review and shortening the reporting effective period.

Market estimates suggest that at least 70% of companies will complete onboarding by the end of this year, and many investment trusts are currently preparing to sign contracts and test the system with TDCC before the third quarter of this year. TDCC encourages investment trust businesses to complete the signing of contracts with TDCC and modify contracts with sales institutions and other units as soon as possible to onboard the "Onshore Fund Centralized Clearing Platform" and work together to promote the development of the domestic fund market, improve overall market operational efficiency, and competitiveness.