Taiwan rules on dividend ETFs will not deter investors, experts say
October 31, 2023--'Earnings equalisation mechanisms' used by managers to help artificially increase dividend payouts are under scrutiny |
In September, Taiwan's regulator announced that from November 1, managers must disclose the dividend composition of ETFs as part of a crackdown on "earnings equalisation mechanisms". These essentially siphon off a portion of new investments in the funds to support previously targeted dividend payouts that would otherwise be diluted by the new investors. However, fund firms are now facing scrutiny from the Financial Supervisory Commission after complaints. |