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TDCC Launched the B2C Service on Onshore Fund Centralized Clearing Platform, Making Fund Subscriptions Easier for Investment Trust Direct Clients

2024/12/24

The Taiwan Depository & Clearing Corporation (TDCC) expands the "Onshore Fund Centralized Clearing Platform" starting from December 23, 2024, to offer payment and receipt service for investment trust companies’ direct clients (B2C). This service aims to provide investors with a convenient and low-cost method for fund subscriptions and payments, reducing fund transaction costs and helping investment trust companies expand their direct client business.

The B2C payment and receipt service is handled by the TDCC through ten financial institutions, including Hua Nan Bank, First Commercial Bank, Chang Hwa Bank, Mega International Commercial Bank, Cathay United Bank, Taipei Fubon Bank, CTBC Bank, Taishin International Bank, SinoPac Bank, and Chunghwa Post, as well as through the E-Bill, connecting 374 institutions, including farmers' and fishermen's Associations and credit cooperatives. This service facilitates automated fund subscription and payment operations, providing a secure and convenient environment for fund investors.

TDCC President Daniel Chen stated that the "Onshore Fund Centralized Clearing Platform," under the guidance of the Financial Supervisory Commission's "Capital Market Blueprint" policy and with strong support from investment trust companies, the Securities Investment Trust and Consulting Association (SITCA), and the Trust Association, has been gradually building a standardized and automated domestic fund centralized clearing mechanism. Last year, the aggregate payment and receipt service between investment trust companies and distributors (B2B) was launched, transforming the market's "many-to-many" remittance operations into "many-to-one and one-to-many" forms. Statistics show a significant 95% reduction in the number of subscription payment transactions by distributors and a 63% reduction in the number of redemption and dividend remittance transactions by investment trust companies, significantly improving market operational efficiency. The launch of the B2C payment and receipt service will create a more complete fund transaction payment and receipt environment.

In the future, fund investors can process fund subscriptions in eight foreign currencies, including USD, EUR, and JPY, through accounts with financial institutions partnered with the TDCC without paying any fees. Additionally, upon redemption, the above ten financial institutions will not deduct bank remittance fees, saving approximately NT$400-800 in foreign currency remittance fees per transaction, significantly reducing transaction costs. The TDCC reminds investors that they must contact their investment trust companies to sign the new direct debit authorization form in order to enjoy the exemption from foreign currency remittance fees.

In terms of benefits for investment trust companies, the launch of the B2C payment and receipt service will effectively reduce transaction costs for investors, thereby increasing the willingness of direct clients to trade and helping companies expand their foreign currency fund subscription business. Simultaneously, through this service, investment trust companies can not only reduce back-office labor costs and fund transfer fees, but also enhance the reconciliation efficiency in subscription and redemption operations.

Based on the philosophy of "Always Thinking One Step Ahead for Your Investment," the TDCC has long been committed to the fund industry, constructing a safe and efficient fund infrastructure, combining front-end and back-end operational experiences, continuously thinking from the user's perspective, and serving as the best support for investment trust companies, distributors, and investors, fostering the co-prosperity and development of the fund industry ecosystem.

集保「境內基金集中清算平台」B2C上線 投信直客基金申購更便利