On Oct. 20, TAI SITCA revised fund trust agreements templates, code.
TAI SITCA revised fund trust agreement templates for various types of funds and code for securities investment trust managers; introduces new anti-dilution fee mechanism.
Amendments
New funds must include the anti-dilution fee mechanism in their trust agreements; existing funds that wish to charge anti-dilution fees must amend their agreements.
Funds with anti-dilution fee mechanism must disclose the threshold for activating fee, collection methods, adjustment procedures in prospectus for investors' understanding.
Securities investment trust businesses, sales agencies are urged to implement anti-dilution fee mechanism, inform investors appropriately, before collecting related fees.
Mechanism for charging transaction fees for ETF purchases and redemptions should consider currency exchange rate fluctuations and must be disclosed in the prospectus.
Effectiveness
The amendments are effective from Jan. 1, 2025.
Oct. 20, 2023 TAI Trust
On Oct. 20, 2023, TAI Trust published TAI SITCA letter re introduction of new anti-dilution fee mechanism, revised agreement template and code of fund manager.
Document dated Oct. 20, 2023, received from TAI Trust Oct. 25, summarized Oct. 26.
Oct. 2024 TAI DCC
On Oct. 16, 2024, TAI DCC adjusted media format for fund information transmission platform, domestic fund central clearing platform, domestic fund trading platform.
In order to include new fields for anti-dilution transaction notes and fee amounts.
Fund information transmission platform media format v3.2 and domestic fund central clearing platform media format v1.2 will be implemented on Jan. 1, 2025.
The implementation date for domestic fund trading platform media format v3.0 will be announced separately, as it depends on the system rollout schedule.
