A futures trust enterprise shall be organized as a company limited by shares, and the paid-in capital may not be less than NT$300 million.
The minimum paid-in capital under the preceding paragraph shall be fully subscribed by the promoters at the time of promotion.

For operation of a futures trust enterprise, there shall be among the promoters one or more promoters that is/are a fund management institution, bank, insurance company, securities firm, futures commission merchant, or financial holding company meeting the qualifications specified below, and the combined share subscription of such qualified promoter or promoters may not be less than 20 percent of the first share issue:
1.Fund management institution:
A.Has been established for at least a full 3 years, and has not been sanctioned by the competent authority of its home country for any reason related to funds management during the past 3 years.
B.Has experience in the management or operation of international futures fund or securities investment trust fund business.
C.Among the assets managed by the institution and its controlling or subordinate institutions, the total value of fund assets of futures funds, securities investment trust funds, mutual funds, unit trusts, or investment trusts that were raised through public offering are not less than NT$65 billion.
2.Bank:
A.Has been established for at least a full 3 years, and has not been sanctioned by the competent authority of its home country for any reason related to funds management during the past 3 years.
B.Has experience in international finance, securities, trust, or futures business.
C.Has been ranked in the most recent year among the world's top 1,000 banks in either assets or net worth.
3.Insurance company:
A.Has been established for at least a full 3 years, and has not been sanctioned by the competent authority of its home country for any reason related to funds management during the past 3 years.
B.The aggregate amount of its funds utilization reaches NT$100 billion or more.
C.The CPA-audited and attested financial report for the most recent period shows a net worth per share of not less than par value.
4.Securities firm:
A.Has been established for at least a full 3 years, and has been operating for at least a full 3 years as a securities firm engaged in the integrated operation of securities underwriting, dealing, and brokerage business.
B.Has not been sanctioned under Article 66, subparagraphs 2 to 4 of the Securities and Exchange Act, or, in the case of a foreign securities firm, has not been sanctioned by the competent authority of its home country, during the past 3 years.
C.Has net worth of NT$8 billion or more, or paid-in capital of NT$6 billion or more, and net worth per share is not less than par value according to the CPA-audited and attested financial report for the most recent period.
5.Futures commission merchant:
A.Has been established for at least a full 3 years, and has been operating for at least a full 3 years as a future commission merchant engaged in the integrated operation of futures brokerage, dealing, and advisory business.
B.Has not been sanctioned under Article 100, subparagraphs 2 to 4 of the Act, or, in the case of a foreign securities firm, has not been subject to a sanction equivalent thereto imposed by the competent authority of its home country, during the past 3 years.
C.Has net worth of NT$1 billion or more, and net worth per share is not less than par value according to the CPA-audited and attested financial report for the most recent period.
6.Financial holding company:
A subsidiary of the financial holding company in which it controls 50% or more of the shares meets qualification requirements as set out in one of the preceding 5 subparagraphs.
If a promoter meeting the qualification requirements in the preceding paragraph intends to transfer any of its shareholding in the futures trust enterprise, the futures trust enterprise shall file for recordation with the competent authority before the promoter transfers the shareholding.

With the exception of shareholders meeting the qualification requirements set out in the preceding Article, the sum total of the shares held by any single shareholder of a futures trust enterprise and by the shareholder's related parties and by the shareholder through nominees may not exceed 25% of the total number of the company's issued shares.
"Related parties" in the preceding paragraph means any party or parties meeting any of the following circumstances:
1.If the shareholder is a natural person: the shareholder's spouse, blood relative within the second degree of kinship, or any enterprise of which the shareholder or the shareholder's spouse is a responsible person.
2.If the shareholder is a juristic person: any juristic person having a relationship of affiliated enterprise as set out in Chapter VI-I of the Company Act.

A future trust enterprise shall at least set up a research and analysis department, a finance and accounting department, and an internal audit department.
A futures trust enterprise shall allocate a sufficient number of competent managerial officers, department supervisors, and associated persons to meet its managerial needs in light of enterprise size, business conditions, and internal controls. Such personnel shall satisfy the qualification requirements set out in the Regulations Governing Futures Trust Enterprises.

When applying for permission to establish a futures trust enterprise, the promoter shall deposit NT$25 million in the financial institution designated by the competent authority.
The financial institution in the preceding paragraph shall be a bank that is approved by the competent authority to operate custody business, and meets the conditions prescribed by the competent authority.
The funds deposited under paragraph 1 may be substituted for by government bonds or securities having a credit rating at or above a prescribed level by a credit rating organization approved or recognized by the competent authority.
After permission has been granted for establishment of the enterprise, the funds under paragraph 1 may be used only after the enterprise has completed incorporation registration and posted an operating bond. If permission for establishment is not granted, or the permission is voided or revoked, the competent authority shall notify the enterprise to reclaim the funds.

To establish a futures trust enterprise, the promoters shall apply to the competent authority for permission by filling out and submitting an application form, together with the following documents:
1.Articles of incorporation.
2.Business plan, specifying: the futures trust enterprise's operational principles; plans for the offering and issuance of futures trust funds and plans for business development for the coming 2 years; internal organization and segregation of duties; personnel recruitment and training plan; general description of premises and facilities; and financial forecasts for the first fiscal year after establishment and the following fiscal year.
3.A register of promoters, specifying: name (individual or company), national ID (or alien Resident Certificate, alien permanent resident certificate, or passport) number or government uniform invoice (GUI) number, address or company location, capital contribution, and subscription ratio. For natural-person promoters, the application must be accompanied by documentary proof of identify; for juristic-person promoters, the application must be accompanied by articles of incorporation, photocopy of documentary proof of incorporation registration, documentary proof of status as an ongoing concern, letter of appointment of the representative and letter of acceptance from the appointed person, CPA-audited and attested financial report for the last fiscal year, register of directors, register of supervisors, register of major shareholders with a shareholding of 3% or higher, and register of affiliated enterprises.
4.Promoters meeting minutes.
5.Documentary proof of the qualification requirements of promoter(s) complying with Article 12.
6.Written statement(s) that none of the circumstances in Article 5 hereof exists, and that no provision of Article 6 or 7 hereof or Article 11 of the Regulations Governing Futures Trust Enterprises is violated, with respect to any of the promoters
7.Written statement(s) that no provision of Article 13 is violated with respect to any promoter(s) not falling under Article 12 hereof.
8.If a juristic-person promoter's duties are to be exercised by a representative or designated representative, the application shall be accompanied by a written statement that none of the circumstances in Article 5 hereof exists with respect thereto.
9.Documentary proof that the funds have been deposited pursuant to the preceding Article.
10.Review checklist for the application for establishment of the Futures Trust Enterprise, reviewed by a lawyer or CPA, and the summary opinion issued by the reviewer.
11.Written statement that the particulars set out in the application and its attachments contain no misrepresentation or nondisclosure.

To establish a futures trust enterprise, the enterprise shall, within 6 months from the day the competent authority grants permission, duly complete all company registration procedures and apply to the competent authority for issuance of a permission license by filling out and submitting an application form, together with the following documents:
1.Documentary proof of incorporation registration;
2.Articles of incorporation;
3.Shareholders register and shareholders meeting minutes.
4.Written statement(s) that none of the shareholders violates Article 13 hereof.
5.Register of directors and supervisors, and minutes of the relevant board of directors meetings.
6.A balance sheet and itemized statement of major expenditures reviewed by the CPA within 1 month prior to the date of application.
7.Documentary proof of qualifications showing that the chairperson and general manager meet the qualifications set out in the Regulations Governing Futures Trust Enterprises.
8.A list of the managerial officers, department supervisors, and associated persons, issued by the Association after reviewing their qualifications, together with documentary proof of their qualifications.
9.Written statement(s) that the managerial officers, department supervisors, and associated persons comply with the provisions in Article 50 of the Regulations Governing Futures Trust Enterprises.
10.Written statements that none of the circumstances in Article 5 hereof exists, and no provision of Article 7 hereof, or Article 11 or Article 56, paragraph 3 of the Regulations Governing Futures Trust Enterprises is violated, with respect to any director or supervisor.
11.If a director or supervisor is a juristic person, a written statement that none of the circumstances in Article 5 hereof exists with respect to the representative or designated representative exercising duties on its behalf.
12.Written statement(s) that none of the circumstances in Article 5 hereof exists, and no provision of Article 56, paragraph 3 of the Regulations Governing Futures Trust Enterprises is violated, with respect to any managerial officer or department supervisor.
13.Written statement(s) that none of the circumstances in Article 5 hereof exists with respect to any associated person.
14.Documentary proof that the requirement in Article 9 hereof is met.
15.Documentary proof that an operating bond has been furnished in accordance with the requirements of Article 17 of the Regulations Governing Futures Trust Enterprises.
16.A written description of the internal control system and an unqualified opinion issued by a CPA.
17.Review checklist for the application by the futures trust enterprise for a permission license.
18.Written statement that the particulars set out in the application and its attachments contain no misrepresentation or nondisclosure.
If a futures trust enterprise fails to apply for a permission license within the time limit as prescribed in the preceding paragraph, its permission shall be revoked. Notwithstanding the foregoing, if there is legitimate reason, an application may be filed with the competent authority before expiration of that period for a maximum extension of 6 months, one time only.

Upon an application for operation of a futures trust enterprise, the competent authority may deny permission in any of the following circumstances:
1.Any violation of Article 7 or 13 hereof or of Article 11 of the Regulations Governing Futures Trust Enterprises.
2.The promoters' qualifications do not meet the requirements set out in Article 12 hereof.
3.Any circumstance in Article 5 hereof, or any violation of Article 6 hereof, exists with respect to any promoter.
4.Any circumstance in Article 5 hereof, or any violation of Article 56, paragraph 3 of the Regulations Governing Futures Trust Enterprises, exists with respect to any director, supervisor, managerial officer, or department supervisor.
5.The business plan or the internal control system is not concrete enough, or cannot be executed effectively.
6.There is likelihood that the professional competence of any promoter is insufficient for sound and effective operation of a futures trust enterprise, or denial of permission is otherwise deemed necessary to protect the public interest.
7.Any misrepresentation or falsehood is found in any content or information in the application documents.