The cash dividend collection fee is 0.12% of the amount of cash dividend collected, as charged by the Central Clearing and Settlement System (CCASS) when distributing a listed company's dividend.
Understanding Cash Dividend Collection Fees
When a listed company pays out a cash dividend, the Central Clearing and Settlement System (CCASS) facilitates its distribution. For this service, CCASS levies a specific fee. This fee is calculated as a percentage of the total cash dividend amount that is collected.
How Intermediaries Handle Dividend Collection Fees
Intermediaries, such as brokerage firms, typically act as a conduit for these fees. They generally pass the 0.12% fee charged by CCASS directly back to their clients. It's important for investors to be aware that while the CCASS fee is standardized, individual intermediaries may choose to collect additional charges for their services related to dividend collection. These extra fees can vary significantly from one intermediary to another.
To summarize the typical fee structure:
| Fee Component | Description | Rate/Nature | Charged By |
|---|---|---|---|
| CCASS Dividend Collection Fee | The standard fee for distributing cash dividends. | 0.12% of the cash dividend collected | CCASS |
| Intermediary's Additional Charge | Extra fees levied by your broker for handling the dividend collection. | Varies by intermediary; consult your broker's fee schedule. | Your Broker |
For more detailed information on fees and charges related to dividend collection, you can refer to resources on financial intermediaries and brokers like those provided by The Chin Family: Dividend collection - The Chin Family.
