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Taiwan’s FSC to launch retirement fund platform in 2021

FSC
By Hui Ching-hoo   
December 10, 2020

Taiwan’s Financial Supervisory Commission (FSC) plans to launch a retirement-focused fund platform offering investment choices such as annuities in 2021, according to a local news report and confirmed by a spokesperson for the regulator.

Chen-Shan Chang, director-general of the FSC’s securities and futures bureau, told reporters the platform will be a new version of a pilot programme launched last year by FundRich Securities, the Commercial Times says in a report on December 9.

Mr. Chang, who was speaking at a news conference in Taipei on December 8, says the FSC expects to introduce the platform as early as June 2021, and that it will complement the FundRich scheme to promote voluntary retirement savings.

It will have more fund options than the FundRich platform, including annuities.

Mr. Chang says the FSC will set up a dedicated committee to identity appropriate funds, and also provide management and administration fee concessions to entice more people to join.

He says it will help relieve financial pressure on the government from Taiwan’s ageing population.

FundRich, which launched the pilot scheme in July 2019, will also oversee the FSC platform but details of the fund option profile haven’t been finalised, the spokesperson who confirmed the details of the report tells Asia Asset Management (AAM).

The pilot programme, called “Enjoy Your Retirement”, provides over 100,000 individuals with nine fund choices overseen by three fund managers, including Allianz Global Investors Taiwan.

FundRich Securities is owned by the Taiwan Depository and Clearing Commission Corporation and Gre Tai Securities Market, the over-the-counter exchange.

The FSC is expanding this type of member choice platform because the pilot programme has been well received, with a “multifold increase” in the participant quota from the original 10,000-20,000, according to Ellen Kuo, a partner of financial services at PricewaterhouseCoopers Taiwan.

“Many members of the FundRich’s pilot scheme are younger people, but the investment products in the new platform are expected to be more suited for people close to their retirement,” Ms. Kuo tells AAM.

Figures from Taiwan’s statistics bureau show that the share of Taiwan’s population aged between 61-70 years increased to 18.9% in 2019 from 17.9% in 2018.