The capital of a SICE may not be loaned to others, used to purchase real estate unconnected with SICE business operations, or transferred for other uses. Utilization of capital not required for business operations shall be restricted to the following:
1.Deposit in domestic banks;
2.Purchase of domestic government bonds or financial bonds;
3.Purchase of domestic treasury bills, negotiable certificates of deposit, or commercial paper;
4.Purchase, in the prescribed ratio, of securities investment trust fund beneficial certificates that conform with FSC regulations;
5.Other uses approved by the FSC.
A SICE may not provide guarantees, endorse negotiable instruments, or provide assets for use as collateral by others except when in compliance with Article 16, paragraph 1 of the Company Act and with prior FSC approval.

A SICE, after carrying out company registration, shall submit an operating bond in the amount of NT$5 million to a financial institution that is allowed to operate custodial business, and meets the conditions prescribed by the FSC. Submission of the bond is not required if the SICE has already submitted an operating bond pursuant to Article 10 of the Regulations Governing Offshore Funds or Article 10 of the Regulations Governing the Conduct of Discretionary Investment Business by Securities Investment Trust Enterprises and Securities Investment Consulting Enterprises.
The operating bond of the preceding paragraph shall be lodged in the form of cash, bank deposits, government bonds, or financial bonds. Such assets may not be pledged or provided in any manner as collateral, and the bond may not be lodged in separate parts with different financial institutions. Any change in the financial institution with which the bond is lodged or withdrawal of the operating bond may only be carried out after reporting the matter in writing and receiving approval from the FSC.
Directions for handling the operating bond of paragraph 1, and any subsequent amendments thereto, shall be formulated by the SITCA and reported in writing to the FSC for approval.

The financial reports of a SICE shall be prepared in accordance with these Regulations and other applicable laws and regulations. Matters not provided for therein shall be governed by generally accepted accounting principles (GAAP).
The GAAP referred to in the preceding paragraph, from the fiscal year of 2013, means the following as recognized by the FSC: International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), and Interpretations developed by the International Financial Reporting Interpretations Committee (IFRIC) or the former Standing Interpretations Committee (SIC).
Within 3 months after the end of each fiscal year, a SICE shall announce and submit to the FSC an annual report audited and certified by a certified public accountant, passed by the board of directors, and recognized by the supervisors.
After commencement of operations, if the CPA-audited and certified annual report submitted by the SICE pursuant to the preceding paragraph shows a net worth per share lower than the par value, such circumstance shall be rectified within 1 year. When a SICE has not rectified the above circumstance within 1 year, the FSC may restrict its provision of securities investment analyses through broadcast media. This provision shall not apply, however, when less than 1 full fiscal year has passed since the SICE obtained its business license.
If, after commencement of operations by a SICE, the financial report submitted pursuant to paragraph 1 shows that its assets are insufficient to settle liabilities, and after receiving an FSC order to rectify the matter within a prescribed period the SICE remains unable to do so by the end of that period, the FSC may revoke its business license.
The annual financial report referred to in paragraph 3 shall be delivered to the SITCA for submission to the FSC.

Except where otherwise provided herein, a SICE that offers or issues securities in connection with a capital increase or decrease shall do so as provided in the Regulations Governing the Offering and Issuance of Securities by Securities Issuers.
The FSC will separately announce the supporting application documents and any regulations pertinent to the issuance of securities in connection with a capital increase or decrease by a SICE that has no publicly issued shares.