A trust enterprise intending to offer and issue a collective trust fund of which 50 percent or more of the offered and issued amount is to be invested in the securities set out in Article 6 of the Securities and Exchange Act, or from which NT$1 billion or higher are available for investment in the securities set out in Article 6 of the Securities and Exchange Act, shall file an application pursuant to the SITC Act for concurrent operation of securities investment trust business before it may carry out such offering. This requirement shall not apply, however, to the offering and issuance of a money market collective trust fund.

A trust enterprise applying to concurrently operate securities investment trust business pursuant to the provisions of Article 6 of the SITC Act and to the preceding article shall meet the following conditions:
1.Has net worth per share of not less than par value, as shown in the CPA-audited and certified financial report for the most recent period.
2.Has not, during the last half year, been sanctioned under Article 103, subparagraph 1 of the SITC Act, Article 66, subparagraph 1 of the Securities and Exchange Act, or Article 100, paragraph 1, subparagraph 1 of the Futures Trading Act, and has not on 3 or more occasions been given an official reprimand and ordered to achieve improvement within a specified period of time under Article 44 of the Trust Enterprise Act.
3.Has not, during the last two years, been sanctioned under Article 103, subparagraphs 2 to 5 of the SITC Act, Article 66, subparagraphs 2 to 4 of the Securities and Exchange Act, or Article 100, paragraph 1, subparagraphs 2 to 4 of the Futures Trading Act, or sanctioned under Article 44, subparagraphs 1 to 3 of the Trust Enterprise Act.

A trust enterprise applying to concurrently operate securities investment trust business pursuant to these Standards shall do so in its institutional name.

A trust enterprise that concurrently operates securities investment trust business shall allocate operating capital for that purpose in an amount as specified in Article 7.
The operating capital that the trust enterprise has allocated for its concurrently operated discretionary investment business, if any, may be calculated into the amount referred to in the preceding paragraph.
The operating capital that the trust enterprise allocates for its concurrently operated securities investment trust business may be used only for that exclusive purpose, and, unless an application has been made for concurrent operation of discretionary investment business pursuant to Article 65 of the SITC Act, or except as otherwise provided by law, may not be used for purposes other than for securities investment trust business.

A trust enterprise concurrently operating securities investment trust business shall set up an investment analysis department. This requirement does not apply, however, if the trust enterprise has already set up an investment analysis department for another line of business it operates.
In a trust enterprise that concurrently operates securities investment trust business, the functions of associated persons engaging in investment or trading decision-making for that business may not be performed concurrently by personnel engaging in decision-making for investment or trading in collective trust fund business or with the enterprise's own money, and vice versa.

A trust enterprise intending to concurrently operate securities investment trust business shall apply to the FSC for permission by filling out and submitting an application form, together with the following documents:
1.A business plan, specifying, with respect the concurrently operated securities investment trust business: operational principles; internal organization and segregation of duties; planning for offering and issuance of collective trust funds intended for investment in securities, and for business development, for the coming 2 years; personnel recruitment and training; and general description of premises and facilities.
2.Minutes of the relevant board of directors meetings, showing the resolution to concurrently operate securities investment trust business. If the trust enterprise is a foreign bank, documents bearing the signature of an entity or person authorized by the head office may be submitted in lieu thereof.
3.A register of directors and supervisors.
4.A register of qualified department supervisors and associated persons, issued by the SITCA after reviewing their qualifications, together with documentary proof of their qualifications.
5.Written statement(s) that none of the circumstances in Article 68 of the SITC Act exists with respect to any director, supervisor, department supervisor, or associated person. If the trust enterprise is a foreign bank, documents bearing the signature of an entity or person authorized by the head office may be submitted in lieu of written statements from directors and supervisors.
6.Written statement(s) that none of the circumstances in Article 78, paragraph 3 of the SITC Act exists with respect to any responsible person or department supervisor.
7.The CPA-audited and certified financial report for the most recent period.
8.A written description of the internal control system for the concurrently operated securities investment trust business, and an unqualified audit opinion letter issued by a CPA.
9.A written statement that the application form and its attachments contain no misrepresentations or nondisclosures.

A trust enterprise applying to concurrently operate securities investment trust business shall, within 6 months from the day the FSC grants permission, submit the following documents and register in compliance with the requirements of the FSC Banking Bureau:
1.A photocopy of the letter of permission issued in response to the trust enterprise's application to concurrently operate securities investment trust business.
2.A register of qualified department supervisors and associated persons, issued by the SITCA after reviewing their qualifications, together with documentary proof of their qualifications.
3.Documentary proof evidencing allocation of operating capital.
4.Documentary proof of admission to membership in the SITCA.
A trust enterprise permitted to concurrently operate securities investment trust business may not commence such business unless and until it has become a member of the SITCA.

Upon an application by a trust enterprise to concurrently operate a securities investment trust business, the FSC may deny permission in any of the following circumstances:
1.Any violation of Article 68 or Article 78, paragraph 3 of the SITC Act with respect to any responsible person or department supervisor.
2.The business plan, or the system of internal controls over the concurrently operated securities investment trust business, is not concrete enough or cannot be effectively implemented.
3.The application documents are found to contain any misrepresentation.

A SICE meeting the following conditions may apply to concurrently operate securities investment trust business, provided, however, that such an application may not be made if the securities investment consulting business is operated on a concurrent basis by an enterprise in another line of business:
1.Has been in operation for at least a full 3 years.
2.Has paid-in capital of no less than NT$300 million.
3.Has one or more shareholders meeting the qualification requirements in Article 8, with a shareholding or combined shareholding of no less than 20% of the total issued shares.
4.Has net worth per share of not less than par value, as shown in the CPA-audited and certified financial report for the most recent period.
5.Has not, during the last 3 months, for any reason related to its conduct of securities investment analysis or futures research and analysis activities, been subject to any action of official reprimand by the FSC pursuant to the SITC Act, or any action of warning, imposition of breach penalty, suspension of membership entitlements in part or in full, or revocation or suspension of membership by the SITCA or the Chinese National Futures Association (CNFA) pursuant to its self-regulatory rules.
6.Has not, during the last half year, been sanctioned under Article 103, subparagraph 1 of the SITC Act, Article 66, subparagraph 1 of the Securities and Exchange Act, or Article 100, paragraph 1, subparagraph 1 of the Futures Trading Act.
7.Has not, during the last two years, been sanctioned under Article 103, subparagraphs 2 to 5 of the SITC Act, Article 66, subparagraphs 2 to 4 of the Securities and Exchange Act, or Article 100, paragraph 1, subparagraphs 2 to 4 of the Futures Trading Act.
If a SICE has been subject to a sanction or action under any of subparagraphs 5 to 7 of the preceding paragraph and has been ordered to achieve improvement, but has failed to effect concrete improvement by the time it applies to concurrently operate securities investment trust business, the FSC may deny its application.

Article 73 of the SITC Act shall apply to a SICE concurrently operating securities investment trust business.

A SICE concurrently operating securities investment trust business shall set up an internal audit department. The same does not apply, however, if the SICE has already set up an internal audit department for the discretionary investment business it operates.

A SICE intending to concurrently operate securities investment trust business shall apply to the FSC for permission by filling out and submitting an application form, together with the following documents:
1.A business plan, specifying, with respect to the concurrently operated securities investment trust business: operational principles; internal organization and segregation of duties; planning for issuance of securities investment trust funds through public offering or private placement, and for business development, for the coming 2 years; personnel recruitment and training; and general description of premises and facilities.
2.Minutes of the relevant board of directors meetings, showing the resolution to concurrently operate securities investment trust business.
3.A register of directors and supervisors.
4.Documentary proof for shareholder qualifications complying with Article 8.
5.Written statement(s) that none of the circumstances in Article 73 of the SITC Act exists with respect to any shareholder holding 5% or more of the total issued shares.
6.The CPA-audited and certified financial report for the most recent period. If at the time of application 6 months have already elapsed since the beginning of the fiscal year, a CPA-audited and certified financial report for the first half-year shall be additionally submitted.
7.A written statement that the application form and its attachments contain no misrepresentations or nondisclosures.
The SICE may simultaneously apply for a branch unit to provide support in the public offering, sale, and private placement of beneficial certificates.

A SICE that applies to concurrently operate securities investment trust business shall, within 6 months from the day the FSC grants permission, apply to the FSC for re-issuance of a business license by filling out and submitting an application form, together with the following documents:
1.Documentary proof of amendment to company registration.
2.Documentary proof of qualifications showing that the chairperson and general manager meet the qualifications set out in the Regulations Governing Responsible Persons and Associated Persons of Securities Investment Trust Enterprises.
3.A register of qualified department supervisors and associated persons of business departments, issued by the SITCA after reviewing their qualifications, together with documentary proof of their qualifications.
4.Written statement(s) that none of the circumstances in Article 68, Article 73, and Article 78, paragraph 3 of the SITC Act exists with respect to any director or supervisor.
5.If a director or supervisor is a juristic person, a written statement that none of the circumstances in Article 68 of the SITC Act exists with respect to any representative or designated representative exercising duties on its behalf.
6.Written statement(s) that none of the circumstances in Article 68 and Article 78, paragraph 3 of the SITC Act exists with respect to any managerial officer or department supervisor.
7.Written statement(s) that none of the circumstances in Article 68 of the SITC Act exists with respect to any associated person.
8.Written statement(s) that all managerial officers, department supervisors, and associated persons are hired as full-time staff.
9.The CPA-audited and certified financial report for the most recent period. The report is not required, however, if it covers the same period as that covered by the financial report submitted in the application for permission.
10.A written description of the internal control system for the concurrently operated securities investment trust business, and an unqualified audit opinion letter issued by a CPA.
11.A written statement that the application form and its attachments contain no misrepresentations or nondisclosures.
The internal control system referred to in subparagraph 10 of the preceding paragraph shall set out precautionary procedures and risk segmentation mechanisms to prohibit and prevent the occurrence of any conflict of interest with beneficial owners or customers or any act prejudicial to the rights or interests of beneficial owners or customers, in connection with codes of conduct, and rules governing concurrent appointment, of responsible persons and associated persons, information sharing, sharing of operating facilities or premises, or advertising, public informational meetings, and other business promotion activities.
The permission granted to the SICE for such concurrent operation shall be revoked if the SICE fails to apply for re-issuance of a SICE business license within the period set out in paragraph 1. Notwithstanding the foregoing, if there is legitimate reason, application may be filed with the FSC before expiration of that period for a maximum extension of 3 months, one time only.
The SICE may not commence such business operation unless and until it has submitted a filing with the SITCA for recordation.

Upon an application by a SICE to concurrently operate securities investment trust business, the FSC may deny permission in any of the following circumstances:
1.Any violation of Article 68, Article 73, or Article 78, paragraph 3 of the SITC Act with respect to any responsible person or department supervisor.
2.Noncompliance with Article 23, paragraph 1, subparagraph 3.
3.The business plan, or the system of internal controls over the concurrently operated securities investment trust business, is not concrete enough or cannot be effectively implemented.
4.There is likelihood that its professional competence is insufficient for sound and effective operation of the concurrently operated securities investment trust business, or denial of permission is otherwise deemed necessary to protect the public interest.
5.The application documents are found to contain any misrepresentation.

A futures trust enterprise intending to use the assets of its futures trust fund to purchase and hold securities with an aggregate market value representing 40 percent or greater of the net asset value of the futures trust fund shall make a prior application to concurrently operate securities investment trust business in accordance with FSC requirements. The same shall not apply, however, in the case of offering and issuance of a futures trust fund-of-funds or a principal protection futures trust fund.

A futures trust enterprise applying to concurrently operate securities investment trust business shall have the following qualifications, provided, however, that such an application may not be made if the futures trust enterprise is operated on a concurrent basis by an enterprise in another line of business:
1.Has paid-in capital of no less than NT$300 million.
2.Has net worth per share of not less than par value, as shown in the CPA-audited and certified financial report for the most recent period.
3.Has not, during the last half year, been sanctioned under Article 103, subparagraph 1 of the SITC Act, or Article 100, paragraph 1, subparagraph 1 of the Futures Trading Act.
4.Has not, during the last two years, been sanctioned under Article 103, subparagraphs 2 to 5 of the SITC Act, or Article 100, paragraph 1, subparagraphs 2 to 4 of the Futures Trading Act.
If a futures trust enterprise has been sanctioned under subparagraph 3 or 4 of the preceding paragraph and has been ordered to achieve improvement, but has failed to effect concrete improvement by the time it applies to concurrently operate securities investment trust business, the FSC may deny its application.

Article 73 of the SITC Act shall apply to a futures trust enterprise concurrently operating securities investment trust business.

When a futures trust enterprise concurrently operates securities investment trust business, the functions of associated persons engaging in investment or trading decision-making for any of its offered securities investment trust funds may not be performed concurrently by any of its futures trust fund managers, and vice versa.

A futures trust enterprise intending to concurrently operate securities investment trust business shall apply to the FSC for permission by filling out and submitting an application form, together with the following documents:
1.A business plan, specifying, with respect the concurrently operated securities investment trust business: operational principles; internal organization and segregation of duties; planning for issuance of securities investment trust funds through public offering or private placement, and for business development, for the coming 2 years; personnel recruitment and training; and general description of premises and facilities.
2.Minutes of the relevant board of directors meetings, showing the resolution to concurrently operate securities investment trust business.
3.A register of directors and supervisors.
4.Written statement(s) that none of the circumstances in Article 73 of the SITC Act exists with respect to any shareholder holding 5% or more of the total issued shares.
5.The CPA-audited and certified financial report for the most recent period. If at the time of application 6 months have already elapsed since the beginning of the fiscal year, a CPA-audited and certified financial report for the first half-year shall be additionally submitted.
6.A written statement that the application form and its attachments contain no misrepresentations or nondisclosures.
The futures trust enterprise may simultaneously apply for a branch unit to provide support in the public offering, sale, and private placement of beneficial certificates of securities investment trust funds. The documents and procedures for the application for permission and for re-issuance of a business license shall be as provided in Articles 36 and 37 hereof.

A futures trust enterprise that applies to concurrently operate securities investment trust business shall, within 6 months from the day the FSC grants permission, apply to the FSC for re-issuance of a business license by filling out and submitting an application form, together with the following documents:
1.Documentary proof of amendment to company registration.
2.Documentary proof of qualifications showing that the chairperson and general manager meet the qualifications set out in the Regulations Governing Responsible Persons and Associated Persons of Securities Investment Trust Enterprises.
3.A register of qualified managerial officers, department supervisors, and associated persons for the concurrently operated securities investment trust business, issued by the SITCA after reviewing their qualifications, together with documentary proof of their qualifications.
4.Written statement(s) that none of the circumstances in Article 68, Article 73, and Article 78, paragraph 3 of the SITC Act exists with respect to any director or supervisor.
5.When a director or supervisor is a juristic person, a written statement that none of the circumstances in Article 68 of the SITC Act exists with respect to any representative or designated representative exercising duties on its behalf.
6.Written statement(s) that none of the circumstances in Article 68 and Article 78, paragraph 3 of the SITC Act exists with respect to any managerial officer or department supervisor conducting the concurrent operation of securities investment trust business.
7.Written statement(s) that none of the circumstances in Article 68 of the SITC Act exists with respect to any associated person conducting the concurrent operation of securities investment trust business.
8.Written statement(s) that all managerial officers, department supervisors, and associated persons for the concurrently operated securities investment trust business are hired as full-time staff.
9.The CPA-audited and certified financial report for the most recent period. The report is not required, however, if it covers the same period as that covered by the financial report submitted in the application for permission.
10.A written description of the internal control system for the concurrently operated securities investment trust business, and an unqualified audit opinion letter issued by a CPA.
11.A written statement that the application form and its attachments contain no misrepresentations or nondisclosures.
The internal control system referred to in subparagraph 10 of the preceding paragraph shall set out precautionary procedures and risk segmentation mechanisms to prohibit and prevent the occurrence of any conflict of interest with beneficial owners or customers or any act prejudicial to the rights or interests of beneficial owners or customers, in connection with codes of conduct, and rules governing concurrent appointment, of managerial officers, department supervisors, and associated persons, information sharing, sharing of operating facilities or premises, or advertising, public informational meetings, and other business promotion activities.
The permission granted to the futures trust enterprise for such concurrent operation will be revoked if it fails to apply for re-issuance of a futures trust enterprise business license within the period set out in paragraph 1. Notwithstanding the foregoing, if there is legitimate reason, application may be filed with the FSC before expiration of that period for a maximum extension of 3 months, one time only.
The futures trust enterprise may not commence its concurrent operation of securities investment trust business unless and until it has become a member of the SITCA.

Upon an application by a futures trust enterprise to concurrently operate securities investment trust business, the FSC may deny permission in any of the following circumstances:
1.Any violation of Article 68, Article 73, or Article 78, paragraph 3 of the SITC Act with respect to any responsible person or department supervisor.
2.The business plan, or the system of internal controls over the concurrently operated securities investment trust business, is not concrete enough or cannot be effectively implemented.
3.There is likelihood that its professional competence is insufficient for sound and effective operation of the concurrently operated securities investment trust business, or denial of permission is otherwise deemed necessary to protect the public interest.
4.The application documents are found to contain any misrepresentation.

When a futures trust enterprise concurrently operating securities investment trust business intends to have any branch unit to provide support in the public offering, sale, and private placement of beneficial certificates of securities investment trust funds, it shall apply to the FSC for permission by filling out and submitting an application form, together with the following documents:
1.Minutes of the relevant board of directors meetings, showing the resolution for the branch unit to provide support in the public offering, sale, and private placement of beneficial certificates of securities investment trust funds.
2.A written description of the internal control system for the branch unit providing support in the public offering, sale, and private placement of beneficial certificates of securities investment trust funds.
3.A written statement that the application form and its attachments contain no misrepresentations or nondisclosures.
The internal control system referred to in subparagraph 2 of the preceding paragraph shall set out rules governing concurrent appointment, and codes of conduct, of any and all managerial officers, department supervisors, and associated persons of the branch unit who provide support in the public offering, sale, and private placement of beneficial certificates of securities investment trust funds.

When a futures trust enterprise concurrently operating securities investment trust business files an application pursuant to the preceding Article, it shall, within 6 months from the day the FSC grants permission, apply to the FSC for re-issuance of a branch unit business license by filling out and submitting an application form, together with the following documents:
1.A register of qualified managerial officers, department supervisors, and associated persons of the branch unit, issued by the SITCA after reviewing their qualifications, together with documentary proof of their qualifications.
2.Written statement(s) that none of the circumstances in Article 68 and Article 78, paragraph 3 of the SITC Act exists with respect to any managerial officer or department supervisor of the branch unit.
3.Written statement(s) that none of the circumstances in Article 68 of the SITC Act exists with respect to any associated person of the branch unit.
4.A written statement that the application form and its attachments contain no misrepresentations or nondisclosures.
The permission granted to the futures trust enterprise concurrently operating securities investment trust business to allow its branch unit to provide support in the public offering, sale, and private placement of beneficial certificates of securities investment trust funds, shall be revoked if the futures trust enterprise fails to apply for re-issuance of a business license for the branch unit within the period set out in the preceding paragraph. Notwithstanding the foregoing, if there is legitimate reason, application may be filed with the FSC before expiration of that period for a maximum extension of 3 months, one time only.

A managed futures enterprise meeting the following qualifications may apply to concurrently operate securities investment trust business, provided, however, that such an application may not be made if the managed futures enterprise is operated on a concurrent basis by an enterprise in another line of business:
1.Has been in operation for at least a full 3 years.
2.Has paid-in capital of no less than NT$300 million.
3.Has one or more shareholders meeting the qualification requirements in Article 8, with a shareholding or combined shareholding of no less than 20% of the total issued shares.
4.Has net worth per share of not less than par value, as shown in the CPA-audited and certified financial report for the most recent period.
5.Has not, during the last half year, been sanctioned under Article 103, subparagraph 1 of the SITC Act, or Article 100, paragraph 1, subparagraph 1 of the Futures Trading Act.
6.Has not, during the last two years, been sanctioned under Article 103, subparagraphs 2 to 5 of the SITC Act, or Article 100, paragraph 1, subparagraphs 2 to 4 of the Futures Trading Act.
If a managed futures enterprise has been sanctioned under subparagraph 5 or 6 of the preceding paragraph and has been ordered to achieve improvement, but has failed to effect concrete improvement by the time it applies to concurrently operate securities investment trust business, the FSC may deny its application.

Article 73 of the SITC Act shall apply to a managed futures enterprise concurrently operating securities investment trust business.

A managed futures enterprise concurrently operating securities investment trust business shall set up an investment research department, a finance and accounting department, and an internal audit department. The same shall not apply, however, if such departments have already been set up.

In a managed futures enterprise concurrently operating securities investment trust business, the functions of associated persons engaging in investment or trading decision-making for any of its offered securities investment trust funds may not be performed concurrently by personnel engaging in discretionary trading for discretionary futures trading business, and vice versa.

A managed futures enterprise intending to concurrently operate securities investment trust business shall apply to the FSC for permission by filling out and submitting an application form, together with the following documents:
1.A business plan, specifying, with respect to the concurrently operated securities investment trust business: operational principles; internal organization and segregation of duties; planning for issuance of securities investment trust funds through public offering or private placement, and for business development, for the coming 2 years; personnel recruitment and training; and general description of premises and facilities.
2.Minutes of the relevant board of directors meetings, showing the resolution to concurrently operate securities investment trust business.
3.A register of directors and supervisors.
4.Documentary proof for shareholder qualifications complying with Article 8.
5.Written statement(s) that none of the circumstances in Article 73 of the SITC Act exists with respect to any shareholder holding 5% or more of the total issued shares.
6.The CPA-audited and certified financial report for the most recent period. If at the time of application 6 months have already elapsed since the beginning of the fiscal year, a CPA-audited and certified financial report for the first half-year shall be additionally submitted.
7.A written statement that the application form and its attachments contain no misrepresentations or nondisclosures.
The managed futures enterprise may simultaneously apply for a branch unit to provide support in the public offering, sale, and private placement of beneficial certificates of securities investment trust funds. The documents and procedures for the application for permission and for re-issuance of a business license shall be subject, mutatis mutandis, to the provisions in Articles 36 and 37 hereof.

Article 34 shall apply mutatis mutandis to a managed futures enterprise applying to concurrently operate securities investment trust business.

Upon an application by a managed futures enterprise to concurrently operate securities investment trust business, the FSC may deny permission in any of the following circumstances:
1.Any violation of Article 68, Article 73, or Article 78, paragraph 3 of the SITC Act with respect to any responsible person or department supervisor.
2.Noncompliance with Article 38, paragraph 1, subparagraph 3.
3.The business plan, or the system of internal controls over the concurrently operated securities investment trust business, is not concrete enough or cannot be effectively implemented.
4.There is likelihood that its professional competence is insufficient for sound and effective operation of the concurrently operated securities investment trust business, or denial of permission is otherwise deemed necessary to protect the public interest.
5.The application documents are found to contain any misrepresentation.