The term "scale of innovative experimentation" mentioned in the Act refers to the number of participants and the monetary amount involved in the innovative experimentation.
The term "monetary amount involved in the innovative experimentation" mentioned in the preceding paragraph refers to the limit of financial products or services provided by the applicant to any single participant set by the applicant itself based on the business nature of the innovative experimentation and the protection measures and appropriate compensation planned after evaluating its own financial position and risk capacity, which also complies with the following provisions:
The aggregate amount of funds, transactions or risk exposures associated with the contracts entered into by the applicant with all participants during the experimentation period and during the contracts' effective period of financial products or services provision, shall not exceed NT$100 million or foreign currency equivalent thereof .
With the exception of qualified institutional investors, the amounts of funds, transactions or risk exposures associated with the financial products or services provided through an innovative experimentation to any single participant are subject to the following limits:
The amount of consumer credit or loan shall be limited to NT$500,000.
The premium or service fees of an insurance product shall be limited to NT$100,000 or equivalent foreign currency thereof, or the insured amount shall be limited to NT$1,000,000 or equivalent foreign currency thereof.
Other financial products or services shall be limited to NT$250,000 or equivalent foreign currency thereof.
The amounts of funds, transactions or risk exposures involved in an innovative experimentation mentioned in the preceding paragraph refer to the amounts of funds, transactions or risk exposures agreed in the contract entered between the applicant and a participant on the provision of financial products or services, excluding investment income, interest income or other income derived thereof.
Where an innovative experimentation involves only charging service fees, the review meeting should determine the limit of total service fees charged and the limit of service fees charged to any single participant in view of the nature of individual business, protection measures adopted and actual management needs.
The review meeting may reduce or increase the limits to the amount of funds, transactions or risk exposures associated with contracts provided under Subparagraph 1, Paragraph 2 hereof and the amount of funds, transactions or risk exposures associated with participants provided under Subparagraph 2 of the same paragraph in view of the nature of individual business, protection measures adopted and actual management needs. However, the increased limit of the aggregate amount of funds, transactions or risk exposures associated with the contracts provided under Subparagraph 1, Paragraph 2 hereof shall not exceed NT$200 million or equivalent foreign currency thereof.
The term "qualified institutional investor" mentioned in Subparagraph 2, Paragraph 2 hereof refers to a qualified institutional investor provided in Subparagraph 1, Paragraph 1, Article 4 of the Financial Consumer Protection Act.

The term "whether the experimentation is innovative" under Subparagraph 2, Article 7 of the Act means the business nature of an innovative experimentation under application is not identical or similar to that of any innovative experimentation already approved by the competent authority and the innovative experimentation meets one of the conditions below:
The innovative experimentation uses technology or business model that has not been made public, implemented or patented by a domestic financial service entity.
The innovative experimentation applies existing or patented know-how to the financial business but using significantly different technology or business model.

The term "effectively increase the efficiency of financial services, reduce operational and use costs or enhance the interests of financial consumers and enterprises" under Subparagraph 3, Article 7 of the Act means that the following conditions shall be met:
The participation of participants in the experimentation is necessary;
The expected benefits are practicable;
The benchmarks for measuring the expected benefits are reasonable; and
The specifics of "effectively increase the efficiency of financial services, reduce operational and use costs or enhance the interests of financial consumers and enterprises" are concrete and reasonable.

The term "potential risks have been assessed and relevant response measures prepared" under Subparagraph 4, Article 7 of the Act means the following:
Perform a complete assessment of the biggest risk that may be brought by the innovative experimentation to the financial market, participants and applicant.
Set up an independent and effective risk management mechanism, including risk patterns generated by the experimentation, risk monitoring and control mechanism (including frequency) and response mechanism.
Establish procedures for submitting periodic reports and reports in case of a risk event to the competent authority in accordance with the supervision and administration provisions under Article 20 and Article 21 herein.

The term "participant protection measures have been established and appropriate compensation prepared" under Subparagraph 5, Article 7 of the Act means conforming with the provisions on protection measures under Chapter IV herein.

The term "other matters that should be evaluated" under Subparagraph 6, Article 7 of the Act should include the following:
The reasonableness of granting the applicant's innovative experimentation the exemption from applicable regulations, orders or administrative rules pursuant to Article 25 of the Act.
The appropriateness of exit mechanism regarding the rights and obligations between the applicant and the participants and other matters after the innovative experimentation ends.
The completeness of mechanisms for anti-money laundering and combating financing of terrorism (AML/CFT).
Partners and their cooperation relationships when it is necessary for the applicant to cooperate with other financial institutions in the innovative experimentation.
The concreteness of the innovative experimentation plan without explicit difficulties for implementation.
The professional proficiency possessed by the applicant to implement the innovative experimentation plan.

The exit mechanism of an innovative experimentation plan shall include the following matters :
Events that may trigger the exit mechanism;
Time to initiate the exit mechanism;
Manner and time of notifying the participants;
Persons who will handle the exit mechanism and procedure or process therefor.
The mechanism for negotiating with participants;
Settlement of funds involved in the innovative experimentation, its return operation and processing of other rights and obligations associated with the participants;
The termination or referral mechanism for services or products provided by the innovative experimentation;
Risks that may occur after the exit; and
Other matters as required by the competent authority.
Where an innovative experimentation involves the receipt of funds, the applicant shall, within one (1) month from the date the experimentation ends, return or dispose the remaining funds in an agreed manner.
After an innovative experimentation ends, the applicant shall handle the personal information of participants in accordance with Paragraph 3, Article 11 of the Personal Information Protection Act.

The competent authority should reject the application of the innovative experimentation when the review meeting it calls decides any of the following situations :
The application documents are incomplete, and the applicant fails to make up the missing documents as required by the competent authority; or the application documents contain false representation.
The application does not meet the review criteria set out in this chapter.