Taiwan Depository & Clearing Corporation

The Covid-19 pandemic, wars, exchange rates, and inflation have contributed to the volatile fluctuation of the global stock market since 2019. Thus, dollar-cost averaging (DCA) into funds has become a way to steadily build wealth and save for retirement. According to the Taiwan Depository Clearing Corporation (TDCC), the volume of trade conducted by FundRich Securities, AnueFund, EZFunds, and other distribution channels on the Onshore Fund Centralized Settlement System was over NT$200 billion in 2021, with a growth of 36%. Among them, trades with DCA strategy accounted for 40%, an eightfold increase over the past five years, indicating that people in Taiwan have become increasingly in favor of steady and autonomous investment methods. TDCC, as the main facilitator of financial inclusion, built the fund market infrastructure.

In recent years, TDCC has worked with competent authorities to promote the Capital Market Roadmap, Corporate Governance Roadmap, and other relevant policies. Moreover, TDCC provides well-rounded services for the fund market—with innovation, resilience, and sustainability in mind—including Offshore Fund Observation Post System (Fund Clear) with information disclosure services, paperless registrations and custody services for issuers, as well as a Fund Data Transmission Platform and Onshore Fund Centralized Settlement System for traders. TDCC has also partnered with FundRich to launch ReLife Project—Experimental Project for Self Pension Saving Investment and Pension Platform. All of the aforementioned reflect the TDCC’s efforts to provide the people with one-stop services for the front, middle, and back offices of the fund market.

In order to further develop the fund market, TDCC has been working closely with the Securities Investment Trust & Consulting Association (SITCA) under the guidance and support of competent authorities, according to TDCC Chairman Han-Chiang Chu. Together, they are gradually improving the efficiency and digitalization of the market mechanism to create a friendly and convenient fund ecosystem for people in Taiwan. They will focus on the following five key aspects for the next three years:

1. Establish a Centralized Onshore Fund Settlement System, featuring a standardized and automated market mechanism.

As the hub of the fund ecosystem, TDCC will transform the many-to-many relationship of data and cash flows into a many-to-one (Settlement System) or a one-to-many relationship among investment trust companies and distribution agencies. Through centralized processing and payment consolidation, TDCC aims to help the fund market evolve to become more standardized, automated, and efficient.

2. Overhaul Fund Clear to strengthen user interface and data depth.

Fund Clear receives market reports and sends out market announcements. The new version of Fund Clear will include a themed and user-friendly interface with information and education centers so that investors can also find relevant information regarding onshore and offshore funds in this one-stop service system.

3. Strengthen the promotion of financial investment education to foster an autonomous investment mindset for the younger generation.

TDCC is working with its subsidiary FundRich Securities to educate people about fund and wealth management. By encouraging people to be disciplined investors who adopt the DCA strategy, TDCC will help the younger generation have a better understanding of investment and retirement planning from the financial inclusion and public good perspectives.

4. Deepen fund data analysis to drive supervision and market development.

Through big data analytics, competent authorities will be able to keep track of market movements in real time, effectively balancing business development and risk management while protecting investors’ rights. Competent authorities will be better informed when it comes to approving new types of products or making relevant decisions to enhance the development of the entire fund market.

5. Continue holding charity events to practice financial inclusion, altruism, and the common good.

TDCC and its subsidiary FundRich launched ReLife Project in 2019 and 2020 as a social responsibility. The project successfully started an unprecedented wave of financial planning for retirement. In September 2021, they sustained the momentum and introduced the Pension Platform along with the Age Well Project. They donated NT$12 million last year, and NT$17 million this year, as well as organized a series of annual social welfare events beginning this year. These reflect TDCC’s mission and commitment to ESG responsibilities. TDCC and FundRich will keep on doing good and attract more enterprises to join them so that everyone can have a secure life after retirement.

Chairman Chu also mentioned the two Ds that are a part of all of us—Digital and Data. It is TDCC’s mission to act as the hub of the fund market. With altruism and the common good as its core values, TDCC is utilizing the power of digitalization and data to help competent authorities conduct supervisory practices and drive market development. Led by the competent authorities’ policies, TDCC will bring more development prospects to the fund market with innovation, resilience, and sustainability in mind.