These Standards are adopted pursuant to Article 82, paragraph 3 of the Futures Trading Act ("the Act").

The term "futures trust enterprise" as used in these Standards means an enterprise that conducts the business of offering futures trust funds and issuing beneficial certificates, and of utilizing futures trust funds to engage in futures trading, and trading of, or investment in, futures-related spot instruments or other items as approved by the competent authority.

An enterprise shall obtain the competent authority's permission and issuance of a permission license before it may operate as a futures trust enterprise. However, an enterprise in another line of business that applies to concurrently operate a futures trust enterprise shall do so in compliance with the provisions in Chapter III.
No enterprise may use the name of "futures trust enterprise" or any name similar thereto without having obtained the permission referred to in the preceding paragraph.

The name of a futures trust enterprise shall clearly indicate it as such by containing the words "futures trust". However, this rule does not apply to an enterprise in another line of business that concurrently operates a futures trust enterprise pursuant to Chapter III.

A person who falls in any of the categories in the following subparagraphs may not serve as a promoter, director, supervisor, managerial officer, department supervisor, or associated person of a futures trust enterprise. If already serving in such capacity, the person shall ipso facto be dismissed:
1.Has previously, by a final and unappealable judgment, been convicted of a crime under the Organized Crime Prevention Act, and has not completed serving the sentence, or 5 years have not yet elapsed since completion of the sentence, expiration of the probation period, or pardon.
2.Has previously, by a final and unappealable judgment, received a sentence of imprisonment for 1 year or more for a crime of fraud, breach of trust, or misappropriation, and has not completed serving the sentence, or 2 years have not yet elapsed since completion of the sentence, expiration of the probation period, or pardon.
3.Has previously, by a final and unappealable judgment, received a sentence of fixed-term imprisonment or greater severity for a crime of misappropriation related to public function or occupation and has not completed serving the sentence, or 2 years have not yet elapsed since completion of the sentence, expiration of the probation period, or pardon.
4.Has, by a final and unappealable judgment, been convicted of a crime under the Securities and Exchange Act or the Securities Investment Trust and Consulting Act, and has not completed serving the sentence, or 3 years have not yet elapsed since completion of the sentence, expiration of the probation period, or pardon.
5.Has, by a final and unappealable judgment, received a criminal sentence of imprisonment or greater severity for accepting deposits, managing trust funds or public property, or handling domestic or foreign exchange/remittance business in violation of Article 29, paragraph 1, of the Banking Act and has not completed the sentence, or 3 years have not yet elapsed since completion of the sentence, expiration of the probation period, or pardon.
6.Has, by a final and unappealable judgment, received a sentence of fixed-term imprisonment or greater severity for engaging in trust business in violation of Article 33 of the Trust Enterprise Act and has not completed serving the sentence, or 3 years have not yet elapsed since completion of the sentence, expiration of the probation period, or pardon.
7.Has, by a final and unappealable judgment, been convicted of a crime under the Act, Company Act, Foreign Exchange Control Act, Insurance Act, Credit Cooperative Act, or Financial Holding Company Act, and has not completed serving the sentence, or 5 years have not yet elapsed since completion of the sentence, expiration of the probation period, or pardon.
8.Has been adjudicated bankrupt and whose rights have not been reinstated, or has previously served as a director, supervisor, managerial officer, or in another equivalent position, of a juristic person at a time when it was adjudicated bankrupt, and either 3 years have not yet elapsed since the bankruptcy was concluded, or the terms of bankruptcy settlement have not been fulfilled.
9.Has been blacklisted after dishonoring of a negotiable instrument, and remains blacklisted.
10.Lacks legal capacity to act, has limited legal capacity to act, or has been declared by a court to be placed under assistance, where such declaration has not yet been voided.
11.Has been sanctioned by dismissal from duties under Article 56, or subparagraph 2 of Article 66 of the Securities and Exchange Act, or sanctioned by dismissal from duties under subparagraph 2 of Article 103, or Article 104, of the Securities Investment Trust and Consulting Act, and 3 years have not yet elapsed since the sanction.
12.Has previously served as a director or supervisor of a securities firm, securities investment trust enterprise, or securities investment consulting enterprise, and during the term of such position, the enterprise was sanctioned by suspension of business or voidance of its business permission under subparagraph 3 or 4 of Article 66 of the Securities and Exchange Act, or was sanctioned by suspension of business or revocation of its business permission under subparagraph 4 or 5 of Article 103 of the Securities Investment Trust and Consulting Act, and 1 year has not elapsed since the sanction.
13.Has been subject to removal or dismissal from duties under Article 100, paragraph 1, subparagraph 2, or Article 101, paragraph 1 of the Act, and 5 years have not yet elapsed since the sanction.
14.Has previously served as a director or supervisor of a futures commission merchant, managed futures enterprise, or futures advisory enterprise and, during the term in that capacity, the enterprise concerned was sanctioned by suspension of its business or voidance of its business permission under Article 100, paragraph 1, subparagraph 3 or 4 of the Act, and 1 year has not yet elapsed since the sanction.
15.Has been discovered to have allowed the use of his/her/its name by another person using it to act as a promoter, director, supervisor, managerial officer, or associated person of a futures trust enterprise.
16.Has been proven by factual evidence to have engaged in or been involved in any other activity that is in bad faith or improper, showing the person to be unsuited to engage in futures enterprise business.
The term " department supervisor" in the preceding paragraph means a supervisor of any department engaged in any business specified in subparagraphs 1 to 5 of Article 4 of the Regulations Governing Futures Trust Enterprises or of a finance or accounting department.
If a promoter, director, or supervisor is a juristic person, paragraph 1 shall apply mutatis mutandis to the performance of duties by the juristic person's representative or designated representative.

A promoter of a futures trust enterprise may not, within 1 year from the date of the company's incorporation, serve as a promoter of any other futures trust enterprise.
One who has previously served as a promoter of a futures trust enterprise in accordance with the qualification requirements set out in Article 12 may not, within 3 years beginning from the date the competent authority issued the permission license to that futures trust enterprise, serve as a promoter of any other futures trust enterprise.

A director or supervisor of a futures trust enterprise or a shareholder holding 5 percent or more of the total number of issued shares thereof may not serve as a promoter of any other futures trust enterprise unless otherwise provided by the competent authority.
Anyone that has a relationship of affiliated enterprise as defined in Chapter VI-I of the Company Act with respect to a director, supervisor, or shareholder holding 5 percent or more of the total number of issued shares, of a futures trust enterprise, may not serve as a promoter of any other futures trust enterprise unless otherwise provided by the competent authority.
The calculation of the shareholding of a shareholder holding 5 percent or more of the total number of issued shares under the preceding two paragraphs shall include shares held by the shareholder's spouse and minor children and shares held through nominees.
"Held through nominees" in these Standards means that the following criteria are met:
1.Directly or indirectly providing the stock to another person or providing funds to another person for the purpose of purchasing the stock.
2.Having rights/interest in the management, use, or disposal of the stock held by the other person.
3.Being the principal to whom belong, in whole or in part, profits or losses of the stock held by the other person.

A futures trust enterprise shall adopt an internal control system pursuant to the Regulations Governing the Establishment of Internal Control Systems by Service Enterprises in Securities and Futures Markets adopted by the competent authority and to the Rules Establishing Standards for the Internal Control Systems of Futures Trust Enterprises adopted by the Chinese National Futures Association ("the Association") or other futures-related organization designated by the competent authority.

The site and facilities for business operations by a futures trust enterprise shall comply with the standards for sites and facilities set out by the Association.

Any document required by these Standards that is in a foreign language shall be accompanied by a Chinese-language translation.
Any document furnished by a foreign national, with the exception of written statements or photocopies of passports, shall have been legalized by an overseas ROC representative office, or certified by a court or government agency, or legalized by a statutory notary agency, in the home country of the foreign national.