These Rules are promulgated pursuant to Article 8, paragraph 2, of the Securities Investor and Futures Trader Protection Act ("the Act").

Before a protection institution applies to a court for registration as a foundation, its prospective directors shall file with the Financial Supervisory Commission (FSC) by letter for recordation, attaching each of the following documents in triplicate:
1. An application form stating the purpose of the foundation's establishment, its name, the location of the principle office, its total assets, scope of operations, and other required matters.
2. The articles of incorporation.
3. A list of contributed assets.
4. A roster of directors and supervisors, with copies of national identification cards and a diagram of any kinship relations among them.
5. Consent statements from those agreeing to serve as a director or supervisor.
6. A list of sample specimens of directors' and supervisors' signatures or seals.
7. Minutes of the meeting of contributors.
8. Minutes of the founding meeting of directors.
9. A list of the contributors and consent statements allowing transfer of contributed assets to the ownership of the protection institution.
10. A plan of operations and a capital utilization statement.
After the letter referred to in the preceding paragraph is filed with the FSC for recordation, the directors of the protection institution shall apply to a court for registration as a foundation within 30 days, and shall file by letter for recordation by the FSC within 30 days from the date registration is completed by the court.

When there are changes in the particulars of the protection institution's registration, within 15 days of the date of the change it shall fill out an application form and all required documents in triplicate and report to the FSC for review and recordation, and thereafter apply to the court for amendment registration.

The protection institution shall report the following particulars, and any amendments thereto, to the FSC for review and recordation:
1. Its articles of incorporation.
2. Procedures for acquiring or disposing of fixed assets.
3. Its internal control system.
4. Appointments and dismissals of personnel at the level of deputy department supervisor and above.
5. Other changes in rules or regulations.
6. Other particulars to be reported for review and recordation pursuant to FSC regulations.

In any of the following events, the protection institution shall take immediate measures appropriate to the circumstances, and report by letter to the FSC for recordation:
1. Utilization of the protection fund for payment in accordance with Article 21 of the Act.
2. The conclusion of any case in which the protection fund has been utilized for payment in accordance with Article 21 of the Act.
3. Receipt of assigned assets over NT$50 million resulting from the assumption of rights of a securities investor or futures trader against a securities firm or futures commission merchant in breach of contract under Article 21, paragraph 3 of the Act.
4. Institution of group arbitration or a class action suit.
5. Any legal action taken pursuant to Article 10-1 or 10-2 of the Act.
6. Minutes of board of directors meetings.
7. Any litigation, non-litigation matter, administrative disposition, administrative dispute, commercial arbitration, or settlement having a material effect on finances or operations.
8. The status of execution of any matters undertaken by the protection institution on behalf of the FSC.
9. Any other matters to be reported by letter for recordation pursuant to FSC regulations.
Under circumstances in subparagraph 1 of the preceding paragraph, the protection institution shall send a letter of report to the FSC within two days from passage of its resolution; under circumstances in subparagraphs 2 through 9, it shall send a letter of report to the FSC within five days from the date it passes a resolution, learns of the occurrence of the given matter, or completes its handling of the matter.

When a supervisor of the protection institution notifies the board of directors to cease unlawful activity in accordance with Article 15, paragraph 3 of the Act, the supervisor shall also give secondary notice to the FSC and report to the FSC by letter within three days, with a written explanation of related matters.