Securities investment trust enterprises and securities investment consulting enterprises may begin operations only after obtaining permission from the Competent Authority and being issued a business license.
Securities investment trust enterprises and securities investment consulting enterprises shall obtain permission from the Competent Authority before establishing branch units.
None other than a securities investment trust enterprise or securities investment consulting enterprise may use a name similar to "securities investment trust enterprise" or "securities investment consulting enterprise."

A securities investment trust enterprise or securities investment consulting enterprise may operate discretionary investment businesses by means of a trust; where it meets certain conditions, it shall apply under the Trust Enterprise Act to concurrently operate trust businesses.
"Certain conditions" in the preceding paragraph shall be defined by the competent authority for the Trust Enterprise Act in consultation with the Competent Authority.
Operators of discretionary investment business by means of trusts shall be limited to securities investment trust enterprises, securities investment consulting enterprises, or entities permitted to operate trust business under the Trust Enterprise Act.

If a trust enterprise operates businesses ratified by the competent authority for the Trust Enterprise Act that involves the trust enterprise having the discretion to decide the investment targets for which the trust property is used, uses the trust property in securities defined in Article 6 of the Securities and Exchange Act, and meets certain conditions, it shall apply to the Competent Authority to concurrently operate discretionary investment business.
"Certain conditions" in the preceding paragraph shall be defined by the Competent Authority in consultation with the competent authority for the Trust Enterprise Act.

A securities investment trust enterprise or a securities investment consulting enterprise that meets the conditions prescribed by the Competent Authority and obtains permission may concurrently operate the other enterprise.
A securities investment trust enterprise or securities investment consulting enterprise that has obtained approval from the Competent Authority may concurrently operate other enterprises.
Securities firms, futures trust enterprises, futures advisory enterprises, managed futures enterprises, or other related enterprises that have obtained permission from the Competent Authority, may concurrently operate securities investment trust enterprises or securities investment consulting enterprises.
Where futures trading accounts for a certain percentage or monetary amount of the issued amount of a securities investment trust fund publicly placed or privately offered by a securities investment trust enterprise, it shall apply to concurrently operate a futures trust enterprise.
The percentage or monetary amount of futures trading under the preceding paragraph shall be prescribed by the Competent Authority.

Securities investment trust enterprises and securities investment consulting enterprises may be organized only as companies limited by shares.
The minimum paid-in capital amount of a securities investment trust enterprise or securities investment consulting enterprise shall be fully subscribed by the promoters at the time of incorporation. The amount thereof shall be prescribed by the Competent Authority.

A person under any of the following circumstances may not serve as a promoter, responsible person, or associated person of a securities investment trust enterprise or securities investment consulting enterprise; where such a person is already serving as a responsible person or associated person, he or she shall be dismissed, and may not serve as a director, supervisor, or managerial officer, and the Competent Authority shall request the competent authority for corporate registration by letter to withdraw or revoke the registration of such person:
1.Has previously been convicted by a final and unappealable judgment of a crime under the Organized Crime Prevention Act, and has not completed serving the sentence, or five years have not elapsed since completion of the sentence, expiration of the suspended sentence, or pardon.
2.Has previously been sentenced by a final and unappealable judgment to imprisonment for one year or more for fraud, breach of trust, or misappropriation, and has not completed serving the sentence, or two years have not elapsed since completion of the term of sentence, expiration of the suspended sentence, or pardon.
3.Has previously been sentenced by a final and unappealable judgment to a sentence of imprisonment or greater severity for misappropriation related to public function or occupation and has not completed serving the sentence, or two years have not elapsed since completion of the sentence, expiration of the suspended sentence, or pardon.
4.Has previously been convicted by a final and unappealable judgment of a crime under the Securities and Exchange Act or this Act, and has not completed serving the sentence, or three years have not elapsed since completion of the sentence, expiration of the suspended sentence, or pardon.
5.Has previously been sentenced by a final and unappealable judgment to a sentence of imprisonment or greater severity for engaging in the business of accepting deposits, managing trust funds or public properties, or handling domestic or foreign remittances in violation of Article 29, paragraph 1, of the Banking Act and has not completed serving the sentence, or three years have not elapsed since completion of the term of sentence, expiration of the suspended sentence, or pardon.
6.Has previously been sentenced by a final and unappealable judgment to a sentence of 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 three years have not elapsed since completion of the sentence, expiration of the suspended sentence, or pardon.
7.Has been adjudicated bankrupt and his or her rights have not been reinstated, or previously served as a director, supervisor, managerial officer, or in another equivalent position of a juristic person when such juristic person was adjudicated bankrupt, and three years have not elapsed since the bankruptcy was concluded, or the reconciliation has not been fulfilled.
8.Has been refused transaction because of dishonor of a negotiable instrument and transactions have not been reinstated.
9.Has no legal disposing capacity or limited disposing capacity, or has been declared by a court to be under assistance and that declaration has not been withdrew.
10.Has been subject to a disposition under Article 56, or subparagraph 2 of Article 66 of the Securities and Exchange Act, or to a disposition of dismissal from duties under subparagraph 2 of Article 103, or Article 104, of this Act, and three years have not elapsed since such disposition.
11.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, such enterprise was subject to a disposition under subparagraph 3 of Article 66 of the Securities and Exchange Act, or to a disposition of suspension of business or revocation of its permission for operation under subparagraph 4 or 5 of Article 103 of this Act, and one year has not elapsed since such disposition.
12.Has been subject to removal or dismissal from duties under Article 100, paragraph 1, subparagraph 2, or Article 101, paragraph 1 of the Futures Trading Act, and five years have not elapsed since such disposition.
13.It has been discovered that the promoter has allowed others to use their own name for the purpose of acting as a promoter, director, supervisor, managerial officer or associated person of a securities investment trust enterprise or securities investment consulting enterprise.
14.There is factual evidence that the promoter has engaged in or been involved in other dishonest or improper activities, showing the promoter to be unsuitable for engaging in securities investment trust and securities investment consulting business.
Where a promoter, director, or supervisor is a juristic person, the provisions of the preceding paragraph shall apply mutatis mutandis with respect to the exercise of duties by its representative or designated representative.

The Competent Authority shall prescribe regulations governing personnel requirements, qualification requirements for responsible persons and associated persons, codes of conduct, training, registration deadlines, procedures, and other compliance requirements for securities investment trust enterprise and securities investment consulting enterprises.

The Competent Authority shall prescribe regulations governing restrictions, bans, prohibitions, or other compliance matters in the conduct of advertising, public informational meetings, and other business activities by securities investment trust enterprises and securities investment consulting enterprises.

A person or entity that is not a securities investment trust enterprise or securities investment consulting enterprise may not do any of the following in advertising in connection with securities investment or business solicitation:
1.Mislead people to believe that it has been approved by the Competent Authority to operate securities investment trust, securities investment consulting, or discretionary investment businesses.
2.Concurrently with engaging in investment analysis, do any customer solicitation or investment inducement for the purpose of providing securities investment advice.
3.Make any representation of guaranteeing profits or bearing losses for securities investment.
4.Cite testimonials, letters of appreciation, past performance, or other similar words or representations that could readily lead others to have mistaken faith in the profitability of securities investment.
5.Falsely use the name of any well-known person or company from the political, financial, monetary, video or film, or other domain to recommend, solicit or induce investment in securities.
6.Any other inappropriate recommendation/promotional conduct related to the preceding five subparagraphs.
An internet platform provider, internet application service provider, internet access service provider, or other network communication media enterprise, when publishing or broadcasting any advertisement that is of a person or entity that is not a securities investment trust enterprise or securities investment consulting enterprise and that involves securities investment or business solicitation, shall in the advertisement disclose or specify the commissioning publisher or sponsor and other related information.
An internet platform provider, internet application service provider, internet access service provider, or other network communication media enterprise may not publish or broadcast any advertisement that violates either of the preceding two preceding paragraphs. If it subsequently becomes aware of such a violation after publishing or broadcasting an advertisement, it shall, at its own initiative or within a deadline as notified by a judicial police authority, remove the advertisement, restrict the browsing of it, cease broadcasting it, or take other necessary measures.
When an internet platform provider, internet application service provider, internet access service provider, or other network communication media enterprise publishes or broadcasts an advertisement that violates paragraph 1 or paragraph 2, it shall be jointly and severally liable with the commissioning publisher and sponsor of the advertisement for damages to anyone who suffers damage because of mistaken belief in the advertisement content or because of being defrauded. However, this shall not apply if it has already taken necessary measures under the latter part of the preceding paragraph.
An enterprise's joint and several liability for damages under the preceding paragraph may be reduced or remitted under any of the following circumstances:
1.It does not receive any property/financial benefit from the publishing or broadcasting of the advertisement.
2.The publishing or broadcasting of the advertisement was not done out of intent or gross negligence.

Responsible persons, associated persons, and other employees of securities investment trust enterprises and securities investment consulting enterprises are also prohibited from doing, in the course of exercising their duties, any act that an enterprise is prohibited from doing as provided in Article 19, paragraph 1, Article 59, or in an act, regulation, or contract.
Acts done by responsible persons, associated persons, and other employees of securities investment trust enterprises and securities investment consulting enterprises when engaging in business listed in the subparagraphs of paragraph 3 of Article 3 and paragraph 3 of Article 4, where civil liability is involved, are presumed to be acts within the scope of the authorization by the enterprise.

Departments, Application Procedures, and Required Documents)
The Competent Authority shall prescribe establishment standards governing the conditions for establishing of securities investment trust enterprise and securities investment consulting enterprise companies and branch units, the departments they are required to establish, application procedures, required documents, and supervisory regulations governing their finances, business, relocation, closure, and other compliance matters.
For the concurrent operation of securities investment trust enterprises or securities investment consulting enterprises by other kinds of enterprises, the Competent Authority shall consult with the competent authorities for the target enterprises concerning the establishment and financial and business supervision matters under the preceding paragraph.

A director or supervisor of a securities investment trust enterprise or a shareholder holding 5 percent or more of the total issued shares thereof may not concurrently serve as a promoter of any other securities investment trust enterprise or as a shareholder holding 5 percent or more of the total issued shares thereof.
One that has a relationship of affiliated enterprise as defined under Chapter VI-I of the Company Law with respect to a director, supervisor or shareholder holding 5 percent or more of the issued shares of a securities investment trust enterprise may not serve as a promoter, director, or supervisor, or a shareholder holding 5 percent or more of the total issued shares, of another securities investment trust enterprise.
Where non-compliance with the preceding two paragraphs results from a merger, adjustments shall be made to effect compliance within one year from the date of the merger.
Shares held by the shareholder's spouse or minor children or held under others' names shall be included in the calculation of shareholdings of five percent or more of total issued shares under paragraphs 1 and 2 above.

The promoters operating a securities investment trust enterprise shall meet certain qualification requirements; among the promoters shall be a fund management institution(s), bank(s), insurance company(ies), financial holding company(ies), securities firm(s), or other institution(s) recognized by the Competent Authority, and the combined share subscribed thereby shall be not less than 20 percent of the first issue of shares; before any transfer of shareholdings by such promoter(s), the securities investment trust enterprise shall file an advance report of such transfer with the Competent Authority for recordation.
Qualification requirements for promoters referred to in the preceding paragraph shall be prescribed by the Competent Authority.
A securities investment trust enterprise shall have one or more shareholders meeting the qualification requirements referred to in the preceding two paragraphs, whose total shareholdings (excluding shareholdings from distributions of new shares for employee bonuses, or from issuance of new shares reserved for subscription by employees, or shareholdings meeting certain conditions) may not be less than 20 percent of the total issued shares; before any transfer of shareholdings by such shareholder(s), the securities investment trust enterprise shall file an advance report of such transfer with the Competent Authority for recordation.
"Certain conditions" in the preceding paragraph shall be defined by the Competent Authority.

The total combined shares held by a single securities investment trust enterprise shareholder other than one meeting the qualification requirements in the preceding article, related parties of the shareholder, and any other persons under whose name the shareholder holds shares, may not exceed 25 percent of the total issued shares of the company.
The scope of related parties referred to in the preceding paragraph shall be prescribed by the Competent Authority.

A promoter of a securities investment trust enterprise may not, within one year from the date of the company's incorporation, concurrently serve as a promoter of another securities investment trust enterprise.
A promoter of a securities investment trust enterprise who has served as a promoter in accordance with the qualifications set forth under Article 74 may not serve as a promoter of any other securities investment trust enterprise within three years from the date of issuance of the business license of that securities investment trust enterprise by the Competent Authority.

From the time that the securities investment trust enterprise decides to utilize the securities investment trust fund to engage in any type of corporate stock or equity derivative trade until such time as the securities investment trust fund no longer holds that corporate stock or equity derivative, no responsible person, department supervisor, branch unit manager, or fund manager of the securities investment trust enterprise, themselves or their spouse, minor child, or other persons in whose name they transact, may engage in trading such corporate stock or equity derivative; provided, this restriction shall not apply where otherwise provided by the Competent Authority.
A responsible person, department supervisor, branch unit manager, fund manager, or related party thereof, of a securities investment trust enterprise who engages in trading of any corporate stock or equity derivative shall report the circumstances of the trade to the securities investment trust enterprise as provided by the Competent Authority.
The scope of "related persons" in the preceding paragraph shall be defined by the Competent Authority.

A responsible person of a securities investment trust enterprise and its department supervisors, branch unit managers, fund managers, or spouses thereof, when acting as a director, supervisor, managerial officer, or shareholder with 5 percent or more of the total issued shares, of a securities issuing company may not participate in decision making when the securities investment trust enterprise utilizes the securities investment trust fund to trade in the securities of such issuing company.
A securities investment trust enterprise and its responsible persons, department supervisors, branch unit managers, fund managers, or shareholder's representative in a share issuing company from which the securities investment trust enterprise purchases stock may not assume a position as a director, supervisor, or managerial officer of an issuing company from which the securities investment trust fund purchases stock; provided, this restriction shall not apply where otherwise provided by the Competent Authority.
The responsible persons, department supervisors, or branch unit managers of a securities investment trust enterprise may not invest in any other securities investment trust enterprise or concurrently act as a director, supervisor, or manager of another securities investment trust enterprise, securities investment consulting enterprise or securities firm, provided that this restriction shall not apply where otherwise provided by the Competent Authority.
Paragraph 4 of Article 73 shall apply mutatis mutandis to the calculation of the shareholding of shareholders with 5 percent or more of the total issued shares under paragraph 1.

Where a director or supervisor of a securities investment trust enterprise is a corporate shareholder, the provisions of this Act concerning directors and supervisors shall apply mutatis mutandis to the performance of duties by its representative or designated representative.
Where a position of director or supervisor in a securities investment trust enterprise is held by a representative of a corporate shareholder, the provisions of this Act concerning directors and supervisors shall apply mutatis mutandis to the corporate shareholder.

As necessary for purposes of protecting the public interest or beneficiaries' rights and interests, the Competent Authority may order a securities investment trust enterprise or a securities investment trust fund managed by it to obtain a credit rating from a credit rating institution approved or recognized by the Competent Authority.
As necessary for purposes of protecting the public interest or beneficiaries' rights and interests, the Competent Authority may order a securities investment trust company to meet certain conditions to deposit an operation bond; those certain conditions, the method of deposit of the operation bond, the deposit rate, conditions for withdrawing the deposit, custody of the bond, and the method of its utilization shall be prescribed by the Competent Authority.

A securities investment trust enterprise shall publicly announce and report to the Competent Authority any matter that materially affects the rights and interests of beneficiaries within two days from the occurrence of the fact.
Matters that materially affects the rights and interests of beneficiaries" in the preceding paragraph shall be defined by the Competent Authority.

The provisions of Articles 73 to 76 do not apply to other enterprises concurrently operating securities investment trust enterprises unless the Competent Authority provides otherwise for purposes of protecting the public interest or preserving market order.

When a securities investment consulting enterprise accepts a mandate from a customer to provide analysis, opinions, or recommendations regarding matters relating to investment or trading in securities, it shall enter into a written securities investment consulting contract setting forth the rights and obligations of both parties.
A customer may terminate a contract under the preceding paragraph by giving written notice within seven days from the date of receiving the written contract.
A declaration of intention to terminate a contract under the preceding paragraph shall take effect from the time it reaches the securities investment consulting enterprise.
When a contract is terminated under paragraph 2, the securities investment consulting enterprise may demand commensurate compensation from the customer for services provided before the termination of the contract, but it may not demand any damages or penalty for the termination of the contract.
The required content of securities investment consulting contracts under paragraph 1 shall be prescribed by the Competent Authority. The Securities Investment Trust and Consulting Association shall draft a template for the contract and submit it to the Competent Authority for ratification; the same shall apply to any amendments thereto.