These Standards are prescribed in accordance with Article 56, paragraph 5 of the Futures Trading Act (hereinafter referred to as "the Act").

A futures commission merchant shall be a company limited by shares; provided, however, that this provision shall not apply to enterprises engaged concurrently [in futures business] with the approval of the competent authority in charge of its industry, or to foreign futures commission merchants operating with the approval of the Financial Supervisory Commission (FSC).

Where any document required by these Standards is prepared in a foreign language, its Chinese translation shall also be submitted.

A person to whom any of the following applies shall not serve as a promoter, director, supervisor, manager, or associated person of a futures commission merchant. If such a person is already serving in such a capacity, he/she shall be discharged from that position:
1. any person specified in any subparagraph of Article 30 of the Company Act;
2. any person who served as the director, supervisor, manager, or other equivalent position of a juristic person at the time it was adjudicated bankrupt, where 3 years have not yet elapsed since the finalization of the bankruptcy proceedings, or where reconciliation has not been satisfied;
3. any person whose checking account at a financial institution has been dishonored within the preceding 3 years;
4. any person who has been discharged from a position under Article 101, paragraph 1 of the Act, or Article 56, or Article 66, subparagraph 2 of the Securities and Exchange Act within the past 5 years;
5. any person who has been sentenced under the Act, the Foreign Futures Trading Act, the Company Act, the Securities and Exchange Act, the Banking Act, the Central Bank of China Act, the Act for the Regulation of Foreign Exchange, the Insurance Act, the Credit Union Act, the Trust Enterprise Act, or the Financial Holding Company Act to a punishment not less severe than a criminal fine; and 5 years have not yet elapsed since the sentence was served, the probation expired, or the offense was pardoned;
6. any person who has been removed from a position pursuant to Article 100, paragraph 1, subparagraph 2 of the Act within the past 5 years;
7. any person who has been proved to have acted as the promoter, director, supervisor, manager, or associated person of a futures commission merchant on behalf of another; or
8. any person who has, as proven by facts, engaged in or been involved in other bad-faith or inappropriate activities, such that he/she is demonstrably unfit to work in the futures industry;
Where the promoter, director, or supervisor is a juristic person, the provisions of the preceding paragraph shall apply mutatis mutandis to the representatives or the designated individuals executing businesses for the juristic person.
Paragraph 1 of this Article shall apply mutatis mutandis to the responsible person of the enterprises or the foreign futures commission merchants referred to in the proviso of Article 2.

Futures commission merchants shall adopt internal control systems in accordance with the FSC's Regulations Governing the Establishment of Internal Control Systems by Service Enterprises in Securities and Futures Markets and with regulations regarding standards for internal control systems as adopted by futures commission merchants adopted by the Taiwan Futures Exchange Corporation and other futures-related agencies.

The sites and facilities at which futures commission merchants operate shall conform to the standards for sites and facilities adopted by the Federation of Futures Industry Associations.

A futures commission merchant must obtain a separate FSC approval for each type of futures business in which it engages. The approval shall vary depending on the type of futures commission merchant, shall be granted in accordance with the Act and these Standards, and shall be indicated on the business license. A merchant shall not operate any type of futures business for which approval has not been granted and which is not indicated on the business license.