Taipei, Dec. 17 (CNA) The Taiwan Cooperative Bank said Friday that a joint investment trust company planned by the bank and France's BNP Paribas Investment Partners is scheduled to begin operations in April.
The bank said that the two partners obtained approval from the Financial Supervisory Commission (FSC) for the proposal Thursday and are gearing up to launch operations.
The joint venture, which will be named BNPP TCB Asset Management Co., will have a paid-in capital of NT$300 million (US$10.05 million). The Taiwanese bank would hold a 51 percent stake, while the French partner would own the remaining 49 percent.
According to Taiwan's regulations, before beginning operations, the joint venture would have to raise money, no less than NT$3 billion, for a mutual fund targeting the Taiwanese stock market.
The bank said that the two companies had faith that the
fund-raising activity would be completed by April as planned as they both have a good reputation in the local financial markets.
The two companies signed an agreement for launching the joint venture in January before they underwent a wide range of regulatory screening procedures and received the final approval from the FSC.
In the signing ceremony, BNP Paribas Investment Partners' Chief Executive Officer, Philippe Marchessaux, said that the co-operation with Taiwan Cooperative Bank would "reinforce our position as a leader in emerging markets."
BNP Paribas Investment Partners, an investment arm of French banking giant BNP Paribas, was set up in July 1980. It has a strong global presence in the asset management business, according to a statement released by the FSC.
The FSC said that the joint venture is expected to provide a new investment channel for local investors.
(By Hsieh Chun-wei and Frances Huang)
Source: CNA
