Unless it has obtained approval from the competent authority or has filed for registration with the competent authority and the registration has become effective, a futures trust enterprise shall not engage in any activity to offer a futures trust fund.
Procedures for the offering, issuance, and sale of a futures trust fund and for subscriptions or redemptions shall be drafted by the Futures Association and submitted to the competent authority for approval.
Consent shall be obtained from the Central Bank for any futures trust fund under the preceding two paragraphs if the fund is offered overseas but will invest domestically or is offered domestically but will invest overseas.
The categories and scope of overseas futures trading and investment in futures-related spot instruments by a futures trust fund offered overseas by a futures trust enterprise shall without exception be determined according to the applicable laws and regulations of the country where the fund is offered.

The name of a futures trust fund shall include the word "futures" and shall not be at variance with the fund's basic policies and scope of investment, nor may it cause a mistaken belief that the security of the principal or the profitability of the fund are guaranteed.

Except where the competent authority provides otherwise, a futures trust enterprise may offer futures trust funds denominated in foreign-currencies. Subscriptions, redemptions, and related fees to be paid shall be in a denominating currency chosen by the futures trust enterprise. Subsequent to such selection, the denominating currency may not be arbitrarily changed.
Consent must first be obtained from the Central Bank for any futures trust fund denominated in a foreign currency pursuant to the preceding paragraph.

A futures trust enterprise may offer and issue umbrella-type futures trust funds for asset allocation purposes. The following conditions shall be observed when offering and issuing a futures trust umbrella fund to unspecified persons:
1.The futures trust subfunds shall be no more than three in number; a single application shall be used for the approval of all subfunds, which shall also be offered simultaneously, and the futures trust umbrella fund will not be established if any single subfund fails to meet the criteria for establishment.
2.A single type or a combination of multiple types of futures trust funds may be chosen for the futures trust subfunds in accordance with asset allocation objectives.
3.Individual futures trust deeds shall be signed for each futures trust subfund, and shall expressly state the following:
A.Given the failure of any single subfund to meet its criteria for establishment, the futures trust umbrella fund will not be established.
B.No mechanism may be provided for automatic conversions between futures trust subfunds; no conversion between subfunds may take place except following an application by a beneficial owner. The fees for such conversion may be set by the futures trust enterprise.

A futures trust enterprise may offer and issue principal protection futures trust funds, including principal guaranteed and principal protected futures trust funds.
As used in the preceding paragraph, "principal guaranteed futures trust fund" means a futures trust fund in which the beneficial owner is provided at maturity with principal guaranteed at a specific rate through the action of a guaranty from a guarantor institution ("guarantor") during the duration of the fund.
"Principal protected futures trust fund," as used in paragraph 1, means a futures trust fund in which the beneficial owner is provided at maturity with principal protected at a specific rate through the action of the futures trust fund's investment instruments during the duration of the fund.
The principal protection percentage of a principal protection fund must be ninety percent or more. For the purpose of protecting principal, assets may be invested in foreign or domestic fixed-income instruments approved by the competent authority, or may be kept in term deposit. Term deposits must be deposited at a bank that is approved by the competent authority to operate custodial business, and meets the conditions prescribed by the competent authority, and the ceiling ratio of the deposit to net asset value is not subject to restriction.
A futures trust enterprise's utilization of a principal protection futures trust fund is restricted to the scope set out in Article 38, paragraph 1, subparagraphs 1 and 2, and is subject to related regulations.
A principal guaranteed futures trust fund shall be guaranteed by a guarantor. The guarantor must be a domestic bank that is approved by the competent authority to operate guaranty business, and meets the conditions prescribed by the competent authority.
The prospectus and marketing documents of a principal protected futures trust fund shall clearly explain that the fund does not provide a mechanism for guarantee by a guarantor, and may not use the words "guaranteed," "safe," "risk-free," or other similar terms.

A futures trust enterprise may offer and issue futures trust funds-of-funds.
As used in the preceding paragraph, a "futures trust fund-of-funds" means a fund that invests in beneficial certificates, fund shares, or investment units issued or managed by a futures trust enterprise, a securities investment trust enterprise (SITE), or a foreign fund management institution.
A futures trust enterprise that offers a futures trust fund-of-funds to unspecified persons shall invest at least five subfunds unless otherwise approved by the competent authority. No subfund may be a futures trust fund offered to one of the persons specified under Article 13, or a privately placed securities investment trust fund, or the privately placed beneficial certificates, fund shares, or investment units issued or managed by a foreign fund management institution, nor may it be a fund of funds.

A futures trust enterprise may offer and issue exchange-traded futures trust funds (Futures ETFs).
As used in the preceding paragraph, a "futures ETF" means a futures trust fund that tracks, simulates, or replicates the performance of an underlying index and is traded on a securities exchange market, with subscription and redemption performed in cash or by the method prescribed in the futures trust deed.
The underlying index referred to in paragraph 2 shall meet the following requirements:
1.The index provider shall have professional ability and experience in producing indexes.
2.The index shall be representative of the defined contractual underlying market.
3.The index's components shall be a broad sampling and liquid, provided that with the competent authority's approval broad sampling need not be required.
4.Index data shall be sufficiently disclosed and easily accessible.
5.There is no violation of laws or regulations in connection with the index, nor any matter that would make the index unsuitable as an underlying index.

The name of a futures ETF shall clearly indicate the index or index performance that is being tracked, simulated, or replicated.

In addition to the matters specified in Article 4, paragraph 1 herein, the futures trust deed of a futures ETF shall also set out the following:
1.The name of the underlying index.
2.Essential content of the index licensing agreement: the parties to the agreement and their rights and obligations; licensed use of the index name; index licensing fees; matters relating to termination of the agreement; other important content.
3.Methods for notification and public announcement of material events in connection with the subject index, when those events have a material bearing on investor rights and interests.
4.Information on the components of the underlying index and the intervals at which it will be released.
5.Essential matters relating to the trading of the ETF on the securities exchange market, the method of subscription and redemption, and the participant agreement.
A futures trust enterprise offering a futures ETF need not specify the total face value issued, total number of beneficial units, or whether there may be any follow-on offerings.

A futures trust enterprise offering a futures ETF that tracks, simulates, or replicates a multiple of the performance of an index ("leveraged futures ETF") or a multiple of the inverse performance of an index ("inverse futures ETF") shall comply with the following provisions in addition to these Regulations and the futures trust deed:
1.The name of a leveraged or inverse futures ETF shall clearly indicate the multiple of the daily performance or inverse performance of the underlying index that is being tracked, simulated, or replicated.
2.To meet trading or investment strategy needs, the total payments by a leveraged or inverse futures ETF, in engaging in trading of futures trust fund beneficial certificates and foreign futures funds, or in investing in beneficial certificates of securities investment trust funds, may respectively be exempted from the restrictions against exceeding 10 percent of the net asset value of the futures ETF under Article 41, paragraph 1, or Article 49, paragraph 1, subparagraph 12. However, the total payments in engaging in the aforesaid trading or investing, plus investments in foreign beneficial certificates, fund shares, or investment units under Article 43, paragraph 3, may not in aggregate exceed 30 percent of the net asset value of the futures ETF.

A futures trust enterprise may offer a futures trust fund to unspecified persons only after submitting an application to the Futures Association with the following documents attached, followed by the Futures Association's review and forwarding of the application, along with a review opinion, to the competent authority and the competent authority's subsequent approval:
1.An application form.
2.A futures trust fund review form.
3.An issuance plan.
4.A futures trust deed.
5.A prospectus (overseas offerings exempted).
6.The board of directors meeting minutes in regard to the offering of the futures trust fund.
7.Documentary proof that the futures trust fund managers meet the qualifications under Article 46 of the Regulations Governing Futures Trust Enterprises.
8.A declaration that none of the circumstances set out in Article 66 apply to the trust supervisor of a fund custodian or a trust enterprise that concurrently operates a futures trust enterprise and that has been approved to keep custody of the futures trust fund assets.
9.An attorney's opinion stating that discrepancies in content between the futures trust deed and the template are reasonable and that the futures trust deed secures beneficial owners' rights and interests as fully as the template deed does.
10.A declaration that the content of application documents for the offering of a futures trust fund is complete, accurate, free from error, and in compliance with the most recent laws and regulations.
11.A photocopy of the Central Bank letter of consent shall be attached with applications for offerings of futures trust funds denominated in foreign currencies.
12.When full discretionary authority to carry out futures trades or to invest in futures-related spot instruments has been granted to another professional institution, the documents specified by the competent authority shall be attached.
13.When an overseas professional institution is engaged to provide consultation, the contract signed with that institution shall be attached.
14.Other documents to be submitted in accordance with the regulations of the competent authority.

A futures trust enterprise may make a follow-on offering of a futures trust fund only after filing for registration with the competent authority, with the following documents attached, and obtaining effective registration:
1.An application form.
2.A futures trust fund review form.
3.A futures trust deed.
4.A prospectus (overseas follow-on offerings exempted).
5.A declaration that none of the circumstances set out in Article 66 apply to the trust supervisor of a fund custodian or a trust enterprise that concurrently operates a futures trust enterprise and that has been approved to keep custody of the futures trust fund assets.
6.A statement of information on the current status of the futures trust fund.
7.A declaration that the content of the documents for the follow-on offering of the futures trust fund is complete, accurate, free from error, and in compliance with the most recent laws and regulations.
8.A declaration that there is no discrepancy between the registration filing documents and the documents submitted to the Futures Association for its review.
9.Other documents to be submitted in accordance with the regulations of the competent authority.
A futures trust enterprise shall obtain the written review opinion from the Futures Association before submitting the registration filing under the preceding paragraph.
A filing for effective registration of a follow-on offering case under paragraph 1 shall become effective once 7 business days have elapsed counting inclusively from the day the competent authority receives the registration filing.
If the registration filing submitted by the futures trust enterprise is incomplete, or the required information is not fully furnished, or any event under Article 14 occurs, if the futures trust enterprise submits supplementation in full of its own accord prior to being notified by the competent authority of the suspension of effective registration, its registration shall become effective when the effective registration period of the preceding paragraph has elapsed, counting from the date on which the competent authority receives the supplementary documentation.
If the follow-on offering case in a filing for effective registration under paragraph 1 involves inward or outward remittance of funds, the futures trust enterprise shall obtain a letter of consent from the Central Bank before it may conduct the follow-on offering. This requirement shall not apply, however, if consent from the Central Bank has been obtained pursuant to Article 7, paragraph 2.

If any of the following circumstances exists regarding a futures trust enterprise's registration to make a follow-on offering of a futures trust fund, the competent authority may suspend the effectiveness of its registration:
1.The registration filing documents are incomplete or do not furnish all the required information.
2.Any event under Article 14 occurs.
3.The competent authority considers suspension necessary to protect the public interest.

Beginning on the date on which a futures trust enterprise receives notification of suspension of effective registration, it may submit supplementation to address the reason(s) for the suspension of effective registration, and apply for lifting of the suspension. If the competent authority does not further notify it to submit supplementation or reject its filing, the registration shall become effective when the effective registration period set out in Article 11-1, paragraph 3 has elapsed, counting inclusively from the date on which the competent authority receives the supplementary documents.
After an effective registration of a futures trust enterprise is suspended by the competent authority under the preceding article, if within 12 business days, counting inclusively from the date upon which it receives the written notice of suspension, the futures trust enterprise does not apply for lifting of the suspension in accordance with the preceding paragraph or it applies for lifting of the suspension but the reasons for the suspension still exist, the competent authority may reject its registration filing case.

A futures trust enterprise may offer a futures trust fund to persons meeting certain eligibility requirements only after submitting an application, with the following documents attached, to the Futures Association, followed by the Futures Association's review and forwarding of the application, along with a review opinion, to the competent authority and the competent authority's subsequent approval of the application:
1.An application form.
2.A futures trust fund review form.
3.A futures trust deed.
4.A prospectus (overseas offerings exempted).
5.The board of directors meeting minutes in regard to the offering of the futures trust fund.
6.Documentary proof that the futures trust fund managers meet the qualifications under Article 46 of the Regulations Governing Futures Trust Enterprises.
7.A declaration that none of the circumstances set out in Article 66 apply to the fund custodian.
8.A photocopy of the Central Bank letter of consent shall be attached with applications for offerings of futures trust funds denominated in foreign currencies.
A futures trust enterprise shall act in accordance with Article 15 when offering a futures trust fund, and when offering the fund to persons meeting certain eligibility requirements, shall also submit the following documents to the competent authority within five days after the date on which payment for the certificates has been completed:
1.A declaration that the beneficial owners meet the requirements set out in Article 13, paragraph 1.
2.A bank proof of deposit document showing that the total proceeds from the beneficial certificates meet the minimum required amount for a futures trust fund offering.

"Persons meeting certain eligibility requirements," as used in the preceding article, means:
1.Banking enterprises, bills finance enterprises, trust enterprises, insurance enterprises, securities enterprises, futures enterprises, or other juristic persons or institutions approved by the competent authority.
2.Natural persons, juristic persons, or funds meeting qualifications set by the competent authority.
No more than ninety-nine persons meeting the qualifications of subparagraph 2 of the preceding paragraph may be the beneficial owners of a fund.

When a futures trust enterprise that applies or files for registration to make an offering or a follow-on offering of a futures trust fund undergoes material financial or operational changes prior to the competent authority's approval or effective registration, or when matters set out in the application or filing documents are subject to material change, and when such changes have a material influence on the issuance plan, the futures trust enterprise shall report the matter to the competent authority within two days of its occurrence. When the fund is offered to unspecified persons, then in accordance with the circumstances, an attorney or a certified public accountant (CPA) shall be requested to issue an opinion, for submission to the competent authority, regarding the influence of the changes on the offering plan.

Any futures trust enterprise, except when operated concurrently by an enterprise in another line of business, shall apply to offer a futures trust fund within one month after being issued a permission license.
When a futures trust enterprise's first application to offer a futures trust fund is for a futures trust fund to be offered to unspecified persons, the fund shall comply with the following provisions:
1.The fund shall be domestically offered.
2.The minimum amount for establishment of the fund shall be 500 million New Taiwan Dollars.
3.Beneficial owners may only apply for redemption a full 45 days after the fund's establishment.
Offering of the futures trust fund of paragraph 1 shall commence within six months from the date on which the enterprise receives the letter of approval for the offering, and the fund shall be established within 45 days after offering is begun.
A futures trust enterprise that receives approval for a non-first-time application to offer a fund, when the fund is offered to unspecified persons, shall begin the offering within six months from the date on which it receives the letter of approval for the offering, and the fund shall be established with 30 days after offering is begun. When, for legitimate reason, the futures trust enterprise is unable to begin the offering within six months, it may apply to the competent authority for a one-time extension of three months only.

After applying and obtaining approval, unless the competent authority has provided otherwise, a futures trust enterprise may make a follow-on offering of a futures trust fund offered to unspecified persons if for the five business days preceding the filing for registration, the average ratio of units issued to the units originally approved and effectively registered for issuance is 80 percent or more.

Given any of the following circumstances, the competent authority may reject or deny approval for an application or registration filing by a futures trust enterprise for a futures trust fund offering or follow-on offering. However, subparagraphs 4, 7, 9, and 11 do not apply to a futures trust fund offered to persons meeting certain eligibility requirements:
1.Particulars of the application or filing are in violation of laws or regulations, affecting the offering or follow-on offering of the futures trust fund.
2.The futures trust enterprise's application or filing for the offering or follow-on offering is made within three months after the date on which it receives a notice from the competent authority of rejection, non-approval, voiding, or revocation of such application or filing, or three months after the futures trust enterprise's own withdrawal of such an application or filing.
3.The futures trust enterprise has already submitted an application to the competent authority and approval has not yet been granted.
4.The application documents of the futures trust enterprise provide factual evidence of inability to carry out the issuing plan.
5.The plan for offering of the futures trust fund has not been written in a proposal and submitted to the board of directors for deliberation and passed by them.
6.The application or filing documents submitted or the information required therein are incomplete and the futures trust enterprise fails to fully supplement the application materials within the deadline set by the competent authority.
7.There is a material instance of a financial report of the futures trust enterprise or of a futures trust fund managed by it not being prepared in accordance with laws and regulations or generally accepted accounting principles.
8.There is a significant deficiency in the design or implementation of the internal control system.
9.A net worth per share was lower than par value in the most recent fiscal year. This provision is not applicable when fewer than two full fiscal years have elapsed since the futures trust enterprise acquired its business license.
10.A period of suspension by the competent authority of the futures trust enterprise's applications pursuant to the Futures Trading Act has not expired.
11.The basic investment policy and scope of the given futures trust fund offering have not been appropriately differentiated from preexisting futures trust funds, or the fund's planned objects of trading and investment are clearly inappropriate.
12.There is a material instance of the futures trust enterprise's violation of futures, securities, or trust laws and regulations, or violation of a futures trust deed.
13.A material instance of error, omission, misrepresentation, or nondisclosure has been discovered within the past year in the application or filing documents for a prior offering or follow-on offering approved by or effectively registered with the competent authority.
14.Other circumstances deemed necessary by the competent authority for the protection of the public interest.

The provisions of the preceding article apply when a futures trust enterprise applies to offer a futures trust fund domestically for the purpose of conducting overseas futures transactions or investing in futures-related spot instruments, and the competent authority may in addition deny approval of the application given any of the following circumstances:
1.The futures trust enterprise has received any disposition within the past year pursuant to Article 100 of the Futures Trading Act, Article 66 of the Securities and Exchange Act, or Article 103 of the Securities Investment Trust and Consulting Act. This provision will not apply given substantive improvement by the futures trust enterprise, recognized by the competent authority, with respect to the subject matter of the disposition.
2.The futures trust enterprise lacks the capacity for research and investment in overseas futures or securities markets and has not obtained the necessary technical capacity for global trade or investment through cooperation with an overseas professional institution.
3.Within the preceding year, the futures trust enterprise was involved in speculation regarding New Taiwan Dollar exchange rate trends in connection with recommending a futures trust fund.

After approval or effective registration of a futures trust enterprise's application or filing for the offering or follow-on offering of a futures trust fund, the competent authority may void or revoke the approval under any of the following circumstances:
1.The futures trust enterprise fails to begin offering or to establish the fund from the date of its receipt the approval letter until the deadline prescribed in Article 15.
2.The futures trust enterprise has engaged in false, fraudulent, or other misleading activities when operating a futures trust enterprise, fund custody business, or other businesses authorized by the Futures Trading Act, or when a financial report or any other related business document reported or publicly announced by the futures trust enterprise or the fund custodian contains a misrepresentation or nondisclosure.
3.The futures trust enterprise is in violation of Article 14.
4.The futures trust enterprise experiences an event with a material impact on the rights and interests of beneficial owners and fails to act as prescribed in Article 10 of the Regulations Governing Futures Trust Enterprises by publicly announcing the matter or informing the beneficial owners within two days of the event and reporting the event to the competent authority.
5.There have been other violations of these Regulations or the restrictions or prohibitions set by the competent authority at the time of approval of the application or effective registration.
When the approval or effective registration granted to a futures trust enterprise is voided or revoked, fund-related matters shall be carried out by the futures trust enterprise in accordance with the futures trust deed.

Prior to accepting a customer's subscription to a futures trust fund's beneficial certificates, a futures trust enterprise shall provide a risk disclosure statement to inform the subscriber of the nature and potential risks of the futures trust fund.
The subscriber shall sign or place their personal seal on the risk disclosure statement of the preceding paragraph and add the date. One copy shall be retained by the futures trust enterprise and another copy given to the subscriber as a receipt.
When a futures trust enterprise is providing information on the nature and potential risks of a futures trust fund pursuant to paragraph 1 to a customer who has previously subscribed to a futures trust fund of a similar nature and with similar sources of risk, then the futures trust enterprise may be exempted from the paragraph 1 requirement to provide such information by consent of the customer. It must still provide a risk disclosure statement, however, and retain a copy of the customer's consent form exempting it from explaining the risks, a copy of the risk disclosure statement signed by the customer, and other relevant documentation.

A futures trust enterprise offering a futures trust fund shall provide subscribers with the fund's prospectus. Offerings of futures trust funds overseas shall be carried out in accordance with the laws and regulations of the place the fund is offered.
The prospectus of the preceding paragraph shall be prepared in accordance with the Regulations Governing Information to be Published in Prospectuses by Futures Trust Enterprises Offering Futures Trust Funds. No misrepresentations or nondisclosures may be contained in the principal content of the prospectus.

Rules governing the form, content, production, and dissemination of advertisements and promotional materials used by futures trust enterprises in offering futures trust funds to unspecified persons shall be prescribed by the Futures Association and submitted to the competent authority for recordation; the same shall be true of any amendment of the rules.
Records relating to the advertisements and promotional materials of the preceding paragraph shall be retained for a period of two years.
A futures trust enterprise that offers a futures trust fund to persons meeting certain eligibility requirements may not engage in general advertising or public solicitation during the period of offering and sale of the fund.
A futures trust enterprise in violation of the preceding paragraph will be deemed to be making an offering to unspecified persons.
The competent authority or an agency designated by it may at any time make random checks of the advertising or promotional materials used by a futures trust enterprise or its authorized futures trust fund distributor as well as records related to the advertising. The futures trust enterprise may not reject or impede the checks.

A futures trust enterprise may not take any of the following actions in its advertising, public informational meetings, or in any other business promotion activities aimed at unspecified persons:
1.Using in its promotions the approval granted by the competent authority for offering of the futures trust fund as a verification of application particulars or as a guarantee of the value of the fund's beneficial certificates.
2.Creating a mistaken belief that the security of the principal or the profitability can be guaranteed.
3.Offering gifts or other benefits as an inducement to solicit the purchase of the fund's beneficial certificates, except where otherwise provided by the competent authority.
4.Making exaggerated publicity claims about past performance or using advertising that attacks industry competitors.
5.Engaging in false or deceptive conduct or other conduct sufficient to cause mistaken belief by another.
6.Engaging in advance advertising or promotional activities for futures trust fund whose offering has not yet been approved by the competent authority.
7.Using advertising content that violates laws or regulations or the content of the futures trust deed or prospectus.
8.Making predictions of the fund's future performance.
9.Promotion of the futures trust fund involving speculation about New Taiwan Dollar exchange rate trends.
10.Any other act prejudicial to the operation of the enterprise or the rights and interests of the beneficial owners of the fund.
When a fund distributor authorized by a futures trust enterprise engages in advertising, public promotional meetings, or other promotional activities that violate the provisions of the preceding paragraph, the futures trust enterprise and the fund distributor shall both bear legal liability under applicable laws and regulations.