A Trust Enterprise may engage in the following activities:
1. trust of money;
2. trust of loans and related security interests;
3. trust of securities;
4. trust of movable property;
5. trust of real estate;
6. trust of leases;
7. trust of superficies;
8. trust of patents;
9. trust of copyrights; and
10. trust of other property rights.

A trust enterprise may conduct the following supplementary businesses:
1.Acting as an agent for issuance, transfer and registration of securities, and distribution of stock dividends, interest and bonuses;
2.Providing consulting services in connection with the issuance and the collection of securities;
3.Serving as a certifier for the issuance of securities;
4.Serving as an executor of wills and an administrator of estates of a deceased person;
5.Serving as a receiver in bankruptcy of a company and a supervisor for the reorganization of a company;
6.Serving as a trust supervisor;
7.Processing custody services;
8.Handling safe deposit box rental services;
9.Handling agency services for the following items if these items are related to trust services:
(1)Acquisition, administration, disposition and lease of property;
(2)Taking clearance and liquidation of property;
(3)Collection of debts; and
(4)Performance of debts;
10.Acting as an intermediary for the sale and the lease of real estate related to trust businesses;
11.Providing consultation services in connection with investments, financial management and real estate development; and
12.Processing other businesses which are permitted by the Competent Authority from time to time.

Types of business to be conducted by a trust enterprise shall be submitted to the Competent Authority for approval, and amendments thereto shall also require such approval. A trust enterprise’s business related to foreign exchange shall be approved by the Central Bank of the Republic of China (Taiwan). If the business of the trust enterprise involves discretionary decision-making in the investment targets, where the trust property is utilized in securities as defined in Articles 6 of the Securities and Exchange Act or in futures as defined by Article 3 of the Futures Trading Act, and where certain conditions are met, shall apply to the Competent Authority to concurrently operate securities investment consulting services.
A trust enterprise shall not conduct any business other than as approved by the Competent Authority.

A trust enterprise that engages in a trust business shall specify the scope of its business operations, limits on transfer of beneficial rights, and disclosure of risks in a trust agreement and notify the trustor of the information.
The Competent Authority shall prescribe the scope of operations, limits on the transfer of beneficial rights, and disclosure of risks as mentioned in the preceding paragraph, as well as marketing, management of contract conclusion and other regulations that shall be complied with.

Trust agreements shall be in writing and shall contain the following items:
1. Name, title and address of the trustor, trustee and beneficiary;
2. Purpose of the trust;
3. Type, name, amount and value of the trust property;
4. Term of the trust;
5. The means of managing the trust and employing the trust property;
6. Time of, and methods for, calculating and allocation of trust gains;
7. Means of liquidation and delivery of the trust property upon termination of the trust agreement;
8. Responsibilities of the trustee;
9. Standards, types, calculation method, payment period and method of the remuneration of the trustee;
10. Expenses and method of payment thereof;
11. Amendment, suspension and termination of the agreement;
12. Execution date; and
13. Other matters required by other acts or by regulations promulgated by the Competent Authority.
A trust enterprise shall submit to the trustor and beneficiary periodic accounting reports in accordance with the trust agreement and the regulations of the Competent Authority. If it is agreed to have a trust supervisor, a trust enterprise shall also report to the trust supervisor.

If the trust property of a trust enterprise is the property required to be registered, it shall be registered pursuant to applicable regulations.
If the trust property of a trust enterprise is securities, the trust enterprise shall manage its self-own property and the trust property separately, and the securities shall be represented in the name of the trust property. When it uses the trust property to engage in business transactions, it shall be valid against the third party, and paragraph 2, Article 4 of the Trust Law shall not apply.
If the trust property of a trust enterprise is securities or corporate bonds, the trust enterprise shall represent the securities or corporate bonds in the name of trust property., and if the trust enterprise conducts transfer registration for trust, it shall be regarded as a notification to the issuing company..

If the trust property of a trust enterprise is securities, the performance of the voting rights of the trust enterprise shall be calculated separately from the trust enterprise’s self-own property and other trust property and the proviso of Article 181 of the Company Act shall not apply.
When a trust enterprise executes the voting rights mentioned in the preceding paragraph, it shall perform it pursuant to the trust agreement.

A trust enterprise shall establish a trust asset assessment committee to assess the value of the trust property once every three months and report the same to the board of directors.

A trust enterprise shall handle trust activities with the care of a good administrator and also undertake the duty of loyalty.
The Trust Association of the Republic of China shall draft regulations on obligations and related acts of trust enterprises mentioned in the preceding paragraph and submit them to the Competent Authority for approval.
A trust enterprise shall periodically publicly announce the property entrusted by political parties and other political organizations and the acquisition and distribution of gains therefrom. Regulations governing such announcements shall be as prescribed by the Competent Authority.

In conducting trust business, trust enterprises shall not do anything which is fraudulent, misrepresentative or misleading to the trustors or beneficiaries.

The operations and administration of a trust enterprise shall be handled by personnel with professional knowledge or experience.
The persons with the power to decide the employment of trust property shall not currently hold any other positions.
A certain percentage of the directors and supervisors of a trust enterprise shall have professional knowledge or experience in the operation and administration of trust enterprises.
The professional knowledge or experience required under paragraphs 1 and 3 and the required percentage under paragraph 3 shall be as prescribed by the Competent Authority.

A trust enterprise cannot use trust property to conduct the following transactions:
1.Purchase securities or notes issued or underwritten by the trust enterprise or its related party;
2.Purchase properties of the trust enterprise or its related party;
3.Sales of trust property to the trust enterprise or its related party;
4.Other interested transactions regulated by the Competent Authority.
The term that a trust company is not entitled to the right to utilize the trust property and is specified in a trust agreement shall not be restricted by the preceding paragraph. A trust enterprise shall fully notify the trustor of transaction circumstances as regards the trust property with itself, or transaction circumstances with respect to the trust property between it and the related party. If a beneficiary is identified, the trust enterprise shall also notify the beneficiary of the said information.
paragraph 1 does not apply to bonds issued by the government.

A trust enterprise shall not use trust property to process businesses of extending credit provided in Article 5-2 of the Banking Act of the Republic of China.
A trust enterprise shall not use trust property to borrow money. This rule does not apply to a land trust, when the purpose of the borrowing is to develop the land, and all the beneficiaries have consented to such borrowing or a beneficiaries’ meeting has passed a resolution to borrow money.
The resolution of a beneficiaries’ meeting can only be executed if the number of beneficiaries, two-thirds (2/3) or above of the total number of beneficial rights, attend the meeting and one-half (1/2) of the voting rights of the beneficiaries attending the meeting consents to such a resolution.

A trust enterprise shall not conduct the following acts, except those acts which are conducted pursuant to the trust agreement, or an act of which the trust enterprise has notified the beneficiary in advance and to which it has acquired written consent from the beneficiary:
1.Use trust property to purchase securities or notes brokered by such an enterprise’s banking department.
2.Use trust property as deposits by depositing such trust property with its banking department or that of a related party, or for a transaction related to foreign exchange with the said banking department.
3.Engage in transactions with itself or its related party other than transactions specified in Article 25, paragraph 1.
The preceding paragraph does not apply to the term of a trust agreement, which states that a trust company is not entitled to the right to utilize the trust property. A trust enterprise shall fully notify the trustor of transaction circumstances as regards the trust property with itself, or transaction circumstances with respect to the trust property between it and a related party. If a beneficiary is identified, the trust enterprise shall also notify the beneficiary of the said information.
The transactions related to foreign exchange as mentioned in paragraph 1, subparagraph 2, shall be subject to laws and regulations related to foreign exchange. A trustor shall be fully informed of risks related to foreign exchange. If a beneficiary is identified, he/she shall also be notified of the said information.
A trust enterprise shall formulate written policies and procedures with respect to control measures of related party transactions.

A trustor may entrust a trust enterprise to manage and operate trust funds together with other trustors’ funds.
Regulations for the aforesaid management and operation shall be as prescribed by the Competent Authority.

To raise Collective Trust Funds, [a trust enterprise] shall file an offering plan with the Competent Authority for approval. Such an offering plan shall include the scope and ratio of investment of the funds, the offering method, transfer of rights, asset management, calculation of net asset value, the distribution of the gains, the prohibition on activities of, and liabilities of, a trust enterprise and other necessary matters. A trust enterprise may not raise "Collective Trust Funds" unless approved to do so by the Competent Authority.
A Trust Enterprise shall manage "Collective Trust Funds" in accordance with the offering plan approved by the Competent Authority.
Regulations Governing the Management of Collective Trust Funds shall be as prescribed by the Competent Authority after consultation with the Central Bank of China.

The Collective Trust Fund beneficial certificates shall be in registered form.
Collective Trust Fund beneficial certificates may be transferred by endorsement of the beneficiary. Unless the identity of the transferee is notified to the trust enterprise, the transfer shall not be valid against such trust enterprise.

A trust enterprise shall not guarantee the principal or minimum return.

In handling trusts of money on a discretionary basis, a trust enterprise may only invest the funds in:
1. Cash and bank deposits;
2. Government bonds, corporate bonds and financial bonds;
3. Money market instruments; and
4. Other assets as approved by the Competent Authority.
The Competent Authority may, when necessary, regulate the scope or means of the operation and place amount limits on the aforesaid trusts of money.

A trust enterprise that manages and employs collective investment trust funds, raises collective trust funds, or formulates a trust agreement involving a majority of trustors or beneficiaries, could draft a term in the trust agreement. Such a term states that a beneficiaries’ meeting shall resolve the execution of rights of a trustor and a beneficiary.
A trust agreement shall specify procedures for convening a beneficiaries’ meeting, methods of reaching a resolution, calculation of voting rights, regulations of meetings and other items which shall be complied with.
The Trust Association of the Republic of China shall draft a model on items that are specified in a trust agreement and shall be complied with in a beneficiaries’ meeting, and submit the model to the Competent Authority for approval.

A beneficiary who/which holds 3% or above of beneficial rights may, with written reasons, request to a trust enterprise that engages in the management and the employment of collective investment trust funds, raise collective trust funds to read, copy or photostat documents which were edited pursuant to Article 31 of the Trust Law.
The trust enterprise shall not reject the request mentioned in the preceding paragraph if any of the following circumstances occurs:
1.The request is not made for the purpose of ensuring the rights of a beneficiary.
2.The request obstructs the execution of a trust activity or impairs mutual interest of beneficiaries.
3.A person who makes the request engages in a business or operates an enterprise which is competitive to a trust business.
4.A person who/which makes the request is to notify the third party of the information that is to be read, copied or photocopied by the person making the request, or within two years before the said request is made, has a record of notifying the third party the information that was read, copied or photocopied by the person making the said request.