TDCC Deepens Engagement in Fund Market - Entrusted with Review the Public Offering and Issuance of Securities Investment Trust Funds Starting from 2024


The Financial Supervisory Commission (FSC) has entrusted TDCC to review the public offering and issuance of securities investment trust funds (exclude ETF), and formulate the "Operational Guidelines for the Review of the Onshore and Offshore Public Offering and Issuance of Securities Investment Trust Funds" effective from January 1, 2024.

In recent years, both onshore and offshore fund markets have seen robust growth, with the number of funds increasing from 1,766 (including ETFs) in 2016 to 2,012 by November 2023. The total fund size has surged from NT$5.2 trillion to NT$10.17 trillion. Over the past three years, the regulatory authority has received a total of approximately 300 fund review cases (including additional fundraising cases) submitted by industry participants. Considering market developments and the need for efficient reviews, the FSC has phased the administrative review of fund-raising cases to peripheral securities units. The article 3-1 in the "Regulations Governing the Public Offering of Securities Investment Trust Funds by Securities Investment Trust Enterprises" and partial articles in the "Regulations Governing Offshore Funds" were amended on December 14, 2023, designating TDCC to handle the review of non-ETF onshore and offshore public offering and issuance of securities investment trust funds cases.

To help fund industry participants understand the future review process, a briefing was jointly held on December 25, 2023, by securities peripheral units. The first phase, effective from January 1, 2024, involves TDCC reviewing cases of securities investment trust enterprises declaring fundraising for additional investment funds cases effective within 7 business days, cases effective within 12 business days (limited to domestic investment, excluding ESG-themed funds), and extension applications, along with related declarations of cancellations, terminations, or amendments. TDCC explained the operational details, declaration formats, and submission considerations during the meeting, offering guidance for industry participants during the first phase.

TDCC stated that it would establish dedicated review teams and contacts to facilitate communication with industry participants before submission and during the review process. The existing focus of regulatory authorities will be maintained, ensuring efficiency in the review process. Taking inspiration from the current review processes of TWSE and TPEx, a declaration case checklist will be introduced for self-inspection by industry participants before submission, enhancing the transparency and predictability of the fundraising review mechanism.

Te-Hsiang Chen, President of TDCC, emphasized that the services provided by TDCC in the fund market, including processing offshore fund declarations, announcements, providing platforms for both onshore and offshore fund transactions, non-physical registration for onshore fund, onshore fund centralized clearing , and assisting regulatory authorities in supervision data and risk analysis, have interconnected various aspects of the fund market. With the current administrative trust by the authorities to review the public offering and issuance of securities investment trust funds, TDCC will continue to adhere to regulatory guidance, offering comprehensive and holistic services to serve as a bridge between regulatory authorities, industry participants, associations, and general investors. The aim is to enhance operational efficiency for all participants, improve investor benefits, and contribute to the overall development of the fund market's ecosystem.

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