An individual, sole proprietorship, partnership, or legal person (referred to as the “applicant” hereunder) may apply to the competent authority for approval to undertake innovative experimentation by submitting the following documents:
1. An application form.
2. Applicant’s data:
(1) Individual: The applicant’s or his/her agent’s proof of domicile or residence in the Republic of China.
(2) Sole proprietorship or partnership: Business certificate, list of responsible persons and proof of domicile or residence in the Republic of China of the responsible persons or their agents.
(3) Legal person: Legal persons registration certificate, articles of association or limited partnership agreement, and list of responsible persons (directors, council members or general partners, supervisors or independent directors).
3. An innovation experimentation plan:
(1) Description of the source of funds;
(2) The financial businesses that the innovative experimentation will be involved;
(3) Description of innovativeness, including technological innovation or business model innovation;
(4) The scope, duration and scale of the innovative experimentation;
(5) Information on key managers carrying out the innovative experimentation;
(6) Major clauses of the contract signed with participants;
(7) Participant protection measures;
(8) Potential risks during the experimentation period and risk management mechanism;
(9) Description of money laundering and terrorist financing risk assessment and risk mitigation measures established using a risk-based approach;
(10) Information systems used in the innovative experimentation, and description of security control operation and risk response measures;
(11) Expected benefits of the innovative experimentation and benchmarks for measuring the benefits achieved;
(12) Exit mechanism when the innovative experimentation is terminated on own initiative, or cancelled or revoked by the competent authority or when the experimentation period ends;
(13) Relevant information on financial technology patents involved, if any; and
(14) Cooperation agreements and description of relevant parties regarding their respective rights and obligations if the innovative experimentation will be conducted in collaboration with other individuals, sole proprietorships, limited partnerships or legal persons.
4. Other documents required by the competent authority.

Individuals and their agents mentioned in Item 1 and responsible persons and their agents mentioned in Item 2, and legal persons and their representatives mentioned in Item 3, Subparagraph 2 of the preceding article, and key managers mentioned in Item 5, Subparagraph 3 of the preceding article shall be free of any of the following circumstances:
1. Any circumstance under the subparagraphs of Article 30 of the Company Act.
2. Having received a final and un-appealable sentence as punishment for a violation of the Banking Act, the Financial Holding Company Act, the Trust Enterprise Act, the Act Governing Bills Finance Business, the Financial Asset Securitization Act, the Real Estate Securitization Act, the Insurance Act, the Securities and Exchange Act, the Futures Trading Act, the Securities Investment Trust and Consulting Act, the Foreign Exchange Regulation, the Credit Cooperative Act, the Agricultural Finance Act, the Farmers Association Act, the Fishermen’s Association Act, the Money Laundering Control Act, the Act Governing Issuance of Electronic Stored Value Cards, or the Act Governing Electronic Payment Institutions, and the sentence has not yet been completed, or five years have not yet passed since execution of the sentence was completed, probation expired, or pardon was granted, as the case may be.
3. Having been ordered by the competent authority to be replaced or discharged of duty due to a violation of the Banking Act, the Financial Holding Company Act, the Trust Enterprise Act, the Act Governing Bills Finance Business, the Financial Asset Securitization Act, the Real Estate Securitization Act, the Insurance Act, the Securities and Exchange Act, the Futures Trading Act, the Securities Investment Trust and Consulting Act, the Credit Cooperative Act, the Agricultural Finance Act, the Farmers Association Act, the Fishermen’s Association Act, the Act Governing Issuance of Electronic Stored Value Cards, or the Act Governing Electronic Payment Institutions, and five years have not yet passed since the replacement or discharge.
Where an individual mentioned in Item 1, a responsible person mentioned in Item 2, or a legal person and its representative mentioned in Item 3, Subparagraph 2 of the preceding article has any of the circumstances under the subparagraphs of the preceding paragraph during the period from the date the innovative experimentation is approved by the competent authority to the date the experimentation period ends, the competent authority should revoke the approval of the innovative experimentation.
Where an agent mentioned in Item 1 or Item 2, Subparagraph 2 of the preceding article, or a key manager mentioned in Item 5, Subparagraph 3 of the preceding article has any of the circumstances under the subparagraphs of Paragraph 1 hereof during the period from the date the innovative experimentation is approved by the competent authority to the date the experimentation period ends, the competent authority should order the applicant to replace the agent or the manager within a given time period, and revoke the approval of the innovative experimentation should the applicant fail to do so within the given time period.

The competent authority should call review meetings to review innovative experimentation applications; the meeting members should include experts, scholars and representatives of relevant government agencies (institutions).

To promote the innovation and development of financial technology and to uphold public interest, the competent authority should, when reviewing an innovative experimentation application, consider the following based on the scope, duration and scale of the proposed innovative experimentation:
1. Whether the experimentation involves financial businesses that require the permission, approval or concession of the competent authority;
2. Whether the experimentation is innovative;
3. Whether the experimentation can effectively increase the efficiency of financial services, reduce operational and use costs or enhance the interests of financial consumers and enterprises;
4. Whether potential risks have been assessed and relevant response measures prepared;
5. Whether participant protection measures have been established and appropriate compensation prepared; and
6. Other matters that should be evaluated.

The competent authority shall complete the review of an innovative experimentation application and make the approval or rejection decision in sixty (60) days after receiving the application, and notify the applicant of the review decision in writing.
If the applicant is notified by the competent authority to make up the missing application documents, the review period mentioned in the preceding paragraph will start from the day after all required documents have been received by the competent authority.
When an application involves the jurisdiction of another government agency (institution), the competent authority should consult the opinion of such other agency (institution).
When approving an innovative experimentation under Paragraph 1 hereof, the competent authority may take the following actions:
1. Adjusting or revising the content of the experimentation plan.
2. Making eligibility limits of participants.
3. Adding other requirements or obligations [to the applicant or the experimentation plan].
4. Exempting the experimentation from specific regulations, orders or administrative rules during the experimentation period.

The period of innovative experimentation approved by the competent authority shall be limited to one year. However, an applicant may, one month before the approved experimentation period ends, apply to the competent authority with reasons attached for approval of an extension; the extension shall be limited to once and no longer than six months. Notwithstanding the foregoing, when an innovative experimentation involves any law amendment, the extension of the experimentation period is not limited to once. However the entire experimentation period shall not be longer than three (3) years.
The competent authority shall make a decision on approving or rejecting the application under the preceding paragraph and notify the applicant of the decision in writing before the originally-approved experimentation period ends.

No changes can be made to an innovative experimentation plan approved by the competent authority. However, if the change does not involve important elements of the experimental financial business and does not have material impact on the interests of participants, the applicant may make changes after applying for the change and obtaining approval of the competent authority.
The competent authority shall make a decision on approving or rejecting the application under the preceding paragraph and notify the applicant of the decision in writing within one month after receiving the application.
The applicant shall submit the following documents when making an application in accordance with Paragraph 1 hereof:
1. An application stating the content of change and reasons therefor;
2. The innovative experimentation plan before and after change and a comparison table;
3. An evaluation surmising that the change will not have material impact on the interests of participants; and
4. Other documents required by the competent authority.

The competent authority shall, after approving an innovative experimentation application, disclose on its website the name of the applicant, contents, duration and scope of the innovative experimentation, regulations, orders and administrative rules that the experimentation is exempted from, and other relevant information. The preceding provision also applies when the competent authority approves the applicant’s application to extend the experimentation period or change the experimentation plan in accordance with Paragraph 1 of Article 9 or Article 10 herein.