A SITE or SICE intending to provide discretionary investment services shall apply to the FSC for approval.
No person that has not received the approval referred to in the preceding paragraph may provide discretionary investment services.

A SITE applying to provide discretionary investment services shall possess the following qualifications:
1. Having already established a securities investment trust fund.
2. A net worth per share not lower than par value in the CPA-audited and certified financial report for the preceding period. However, this requirement shall not apply to a SITE that has obtained its business licenses for less than 1 full fiscal year.
3. Having received no sanction pursuant to Article 103, subparagraph 1 of the SITC Act, Article 100, paragraph 1, subparagraph 1 of the Futures Trading Act, or Article 66, subparagraph 1 of the Securities and Exchange Act within the preceding half-year.
4. Having received no sanction equal to or greater than those under Article 103, subparagraphs 2 through 5 of the SITC Act, Article 100, paragraph 1, subparagraphs 2 through 4 of the Futures Trading Act, or Article 66, subparagraphs 2 through 4 of the Securities and Exchange Act within the preceding two years.
5. Having made substantive corrections after being sanctioned pursuant to the preceding two subparagraphs and receiving an order to take corrective action.
6. Other qualifications as may be prescribed by the FSC.

A SICE applying to provide discretionary investment services shall possess the following qualifications:
1. Paid-in capital of no less than NT$50 million. For a SICE making this application that concurrently conducts futures advisory business or a SICE simultaneously applying to conduct discretionary investment business and to concurrently conduct futures advisory business, actual paid-in capital shall be no less than NT$70 million.
2. The CPA-audited and certified financial report for the preceding period, showing a net worth per share not lower than par value. However, this requirement shall not apply to a SICE that has obtained its business licenses for less than 1 full fiscal year.
3. Having not been subject within the past three months to a warning, penalty for default, suspension of some or all of the rights and interests normally enjoyed by a member, or voidance or suspension of membership qualifications by the Securities Investment Trust and Consulting Association of the R.O.C. (SITCA) or the Chinese National Futures Association, pursuant to their self-regulatory rules, resulting from its operation of securities investment analysis or futures research and analysis.
4. Having received no sanction pursuant to Article 103, subparagraph 1 of the SITC Act, Article 100, paragraph 1, subparagraph 1 of the Futures Trading Act, or Article 66, subparagraph 1 of the Securities and Exchange Act within the preceding the preceding half-year.
5. Having received no sanction equal to or greater than those under Article 103, subparagraphs 2 through 5 of the SITC Act, Article 100, paragraph 1, subparagraphs 2 through 4 of the Futures Trading Act, or Article 66, subparagraphs 2 through 4 of the Securities and Exchange Act within the preceding two years.
6. Having effected substantive correction after previously receiving a disposition or sanction under the preceding 3 subparagraphs and being ordered to make correction.
7. Other qualifications as may be prescribed by the FSC.
A SICE that applies to provide trust-type discretionary investment services shall meet the qualifications of subparagraphs 2 through 7 of the preceding paragraph, and its paid-in capital shall not be lower than the sum of the amount prescribed in subparagraph 1 of the preceding paragraph plus NT$50 million; for a managed futures enterprise that concurrently operates or is at the same time applying to concurrently provide trust-type discretionary investment services, paid-in capital not lower than the sum of the minimum paid-in capital amount prescribed in Article 15 of the Standards for the Establishment of Managed Futures Enterprises plus NT$50 million.

A SITE or a SICE that applies to provide discretionary investment services shall fill out an application form, attaching the following documents, for submission to the SITCA, which shall review and forward them to the FSC for permission:
1. Articles of incorporation.
2. Company bylaws.
3. The CPA-audited and certified financial report for the most recent fiscal year. If the date of application is more than six months past the start of the new fiscal year, the CPA-audited and certified financial report for the first half of the fiscal year shall also be attached.
4. The meeting minutes of the relevant board of directors meetings.
5. A business plan, specifying, with respect to the discretionary investment business, the operational principles, internal organization and segregation of duties, and personnel recruitment and training.
6. A declaration that the particulars set out in the application and its attachments involve no misrepresentations or nondisclosures.
7. A SITE or a SICE that applies to provide trust-type discretionary investment services shall at the same time attach the documents prescribed in the Regulations Governing the Concurrent Operation of Trust Business by Securities Investment Trust Enterprises, Securities Investment Consulting Enterprises, and Securities Firms.
The company bylaws referred to in subparagraph 2 of the preceding paragraph shall include an internal control system that sets out, with respect to discretionary investment services, operating principles, operating procedures, segregation of duties and responsibilities, resolution of business disputes, personnel training and education, and administrative matters.
A SITE or a SICE may simultaneously apply for a branch unit to provide support in the promotion of its discretionary investment business.

Within three months after the date of FSC approval for the offering of discretionary investment services, the SITE or SICE shall fill out an application for issuance of a new business license with the following documents attached for submission to SITCA, which shall review and forward them to the FSC for permission:
1. Documentary proof of company registration.
2. The SITE or SICE business license.
3. The name of the organization conforming to the provisions of Article 8, and a register of personnel meeting qualification requirements, issued by the SITCA after reviewing their qualifications, together with the relevant documentary proof of qualifications.
4. The audit report from a CPA special audit on the internal control system for the discretionary investment services.
5. A prospectus prepared in accordance with the provisions of Article 21 herein.
6. Documentary proof that the operating bond required under Article 10 has been furnished.
7. A declaration that the particulars set out in the application and its attachments contain no misrepresentations or nondisclosures.
The CPA performing the audit required by subparagraph 4 of the preceding paragraph shall be one qualified to audit and attest the financial reports of public companies.
The FSC may revoke the permission of a SITE or a SICE that fails to apply for issuance of a new business license within the period prescribed by paragraph 1, provided that with legitimate reason, an application may be forwarded to the FSC through SITCA prior to the end of the prescribed period for a one-time extension of three months only.
A SITE or a SICE that offers trust-type discretionary investment services shall apply for issuance of a new business license pursuant to the provisions of paragraph 1, and in addition, prior to commencing business, shall complete registration of new lines of business pursuant to the Regulations Governing the Concurrent Operation of Trust Business by Securities Investment Trust Enterprises, Securities Investment Consulting Enterprises, and Securities Firms and report to the FSC with documentation showing approval for membership in the Trust Association of the R.O.C.and the lodging of the required compensation reserve.

A SITE or a SICE that offers discretionary investment services and applies for promotion and business solicitation for its discretionary investment services by a branch unit shall fill out an application, with the following documents attached, and apply to the FSC for permission:
1. Board of directors meeting minutes containing a resolution for the branch unit to engage in promotion and business solicitation for discretionary investment services.
2. The internal control system for the promotion and solicitation of discretionary investment services by the branch unit.
3. A declaration that the particulars set out in the application and its attachments involve no misrepresentations or nondisclosures.
The internal control system of subparagraph 2 of the preceding paragraph shall include rules governing the concurrent appointment and the conduct of associated persons at the branch unit who engage in promotion and solicitation for the discretionary investment services.

A SITE or a SICE that offers discretionary investment services and makes an application pursuant to the preceding paragraph shall fill out an application form, with the following documents attached, and within six months after the date of receiving FSC permission, apply to the FSC for issuance of a new business license for its branch unit:
1. A register, issued by the SITCA, of associated persons at the branch unit engaging in promotion and solicitation for discretionary investment services whose qualifications have passed review, and documentation of their qualifications.
2. A declaration stating that none of the circumstances under Article 68 of the SITC Act apply to any officer, department supervisor, or associated person of the branch unit.
3. A declaration that the particulars set out in the application and its attachments involve no misrepresentations or nondisclosures.
Permission for a branch unit to engage in promotion and solicitation of discretionary investment services will be revoked for any SITE or SICE that does not apply to the FSC for issuance of a new business license for the branch unit for such business within the stated deadline of the preceding paragraph, provided that when a legitimate reason exists, an application may be made to the FSC for a one-time extension of no more than three months.

Given any of the following circumstances in an application by a SITE or a SICE for operation of discretionary investment business, the FSC may withhold permission:
1. The business plan or the internal control system is insufficiently specific or cannot be effectively implemented.
2. The department supervisors or associated persons operating the discretionary investment business do not meet the provisions of the Regulations Governing Responsible Persons and Associated Persons of Securities Investment Consulting Enterprises regarding qualification or exclusively holding the given position.
3. The content of the application or matters set out therein are discovered to contain misrepresentations.
4. Other circumstances under which it is deemed necessary to withhold approval in order to protect the public interest.
The FSC may withhold permission given any of the following circumstances in an application by a SITE or a SICE for operation of trust-type discretionary investment business:
1. The circumstances in any of the subparagraphs of the preceding paragraph.
2. The person with authority to determine the disposition of trust assets does not meet the requirement under the Trust Enterprise Act of not concurrently holding any other position.
3. The responsible person of the SITE or SICE and the associated persons that operate and manage trusts do not possess the qualifications or the specialized knowledge or experience in relation to trusts required by the Regulations Governing the Concurrent Operation of Trust Business by Securities Investment Trust Enterprises, Securities Investment Consulting Enterprises, and Securities Firms.