A futures broker, futures trust enterprise, securities investment trust enterprise, or securities investment consulting enterprise may apply to concurrently operate a managed futures enterprise, except when the former is already operated concurrently by another enterprise.
A futures broker or a securities investment consulting enterprise that concurrently operates a managed futures enterprise shall allocate operating capital earmarked for the business of that enterprise in an amount not less than that set out in Article 9, paragraph 1.
The operating capital allocated under the preceding paragraph shall be used exclusively for that purpose, and unless otherwise stated in law, may not be used for non- managed futures business or other business.
The paid-in capital of a futures broker or a securities investment consulting enterprise that concurrently operates a managed futures enterprise must conform with the following provisions; where its capital is insufficient, the enterprise shall increase its capital:
1.The paid-in capital of the futures broker may not be lower than the sum of the minimum amount of operating capital allocated for exclusive purposes pursuant to paragraph 2 and the minimum amount of paid-in capital under Articles 8 and 14 of the Standards Governing the Establishment of Futures Commission Merchants.
2.The paid-in capital of the securities investment consulting enterprise may not be lower than the sum of the minimum amount of operating capital allocated for exclusive purposes pursuant to paragraph 2 and the minimum amount of paid-in capital under Article 5 of the Regulations Governing the Conduct of Discretionary Investment Business by Securities Investment Trust Enterprises and Securities Investment Consulting Enterprises.
A futures broker or a securities investment consulting enterprise that applies to concurrently operate a managed futures enterprise shall first obtain a business license for the operation of discretionary investment business, approved and issued or renewed by the competent authority.

A futures broker, futures trust enterprise, securities investment trust enterprise, or securities investment consulting enterprise that concurrently operates a managed futures enterprise shall establish an independent department exclusively for that purpose. This provision shall not apply when the enterprise concurrently operating the managed futures enterprise has already established an independent department exclusively responsible for discretionary investment business.
When one of the enterprises first named in the preceding paragraph applies to concurrently operate managed futures business, it shall appoint managers and associated persons in accordance with the provisions of Article 10.

A futures broker, futures trust enterprise, securities investment trust enterprise, or securities investment consulting enterprise shall possess the following qualifications in order to apply to concurrently operate a managed futures enterprise:
1.Its CPA-audited and attested financial report for the most recent period must show a net worth per share not lower than par value.
2.It must not, within the preceding three months, have received from the Futures Association or the Securities Investment Trust and Consulting Association of the R.O.C. (SITCA), in accordance with their respective self-regulatory rules, any warning, penalty for default, or disposition suspending all or part of the rights and interests it enjoys as a member or voiding or temporarily suspending its membership qualification.
3.It must not have received any disposition issued pursuant to Article 100, paragraph 1, subparagraph 1 of the Futures Trading Act, Article 103, subparagraph 1 of the Securities Investment Trust and Consulting Act, or Article 66, subparagraph 1 of the Securities and Exchange Act within the past six months.
4.It must not have received any disposition issued pursuant to Article 100, paragraph 1, subparagraphs 2 through 4 of the Futures Trading Act, Article 103, subparagraphs 2 through 5 of the Securities Investment Trust and Consulting Act, or Article 66, subparagraphs 2 through 4 of the Securities and Exchange Act within the past two years.
The competent authority may refuse to grant approval to an entity that has applied to concurrently operate a managed futures enterprise when that entity has received a disposition or other penalty prescribed by subparagraph 2, subparagraph 3, or subparagraph 4 of the preceding paragraph, and following an order from the competent authority for improvement, has failed to make concrete improvements by the time of its application.

A futures broker, futures trust enterprise, securities investment trust enterprise, or securities investment consulting enterprise that applies to concurrently operate a managed futures enterprise shall fill out an application form with the following documents attached to apply for approval from the competent authority:
1.An operations plan, setting out the operating principles for the managed futures enterprise, a business development plan for the business of the managed futures enterprise covering the following two years, its internal organization and divisions, a personnel recruiting and training plan, and a general description of the site and facilities.
2.The minutes of the board of directors meeting at which it was resolved to concurrently operate a managed futures enterprise.
3.A register of directors and supervisors.
4.A CPA audited and attested financial report for the most recent period. When the application is submitted more than six months after the beginning of the fiscal year, a CPA audited and attested financial report for the first six months of the year shall also be submitted.
5.An application review checklist.
6.A declaration stating that the application form and attached documents contain no concealment or misrepresentation.
The enterprises submitting applications pursuant to the preceding paragraph may at the same time apply for promotion and solicitation of business by existing branch units in relation to the business activities allowed for enterprises concurrently operating managed futures business. The required documents and procedures for approval of their applications and issuance of certificates of license shall be as in Articles 21 and 22.

Within six months after receiving approval from the competent authority, a futures broker, futures trust enterprise, securities investment trust enterprise, or securities investment consulting enterprise that applies to concurrently operate a managed futures enterprise shall amend its articles of incorporation and carry out the required amendments to company registration for concurrent operation of a managed futures enterprise. It shall also fill out an application form, with the following documents attached, and apply to the competent authority for a certificate of license:
1.Its articles of incorporation and company registration amendment documents.
2.A description of the internal control system for the managed futures enterprise and a review opinion from a CPA expressing an unqualified opinion.
3.A CPA audited and attested financial report for the most recent period. The financial report need not be attached if for the same period as the report attached with the application for approval to operate a managed futures enterprise.
4.A register, issued by the Futures Association, of the managerial officers and associated persons for the managed futures enterprise who have passed the review of their qualifications, with documentation showing their qualifications.
5.A declaration stating that none of the circumstances in Article 5 applies with respect to the directors and supervisors or the persons serving as the managerial officers and associated persons of the managed futures enterprise.
6.A declaration stating that for juristic person directors and supervisors, none of the circumstances of Article 5 apply to the juristic person's representatives or the persons designated by the juristic person when they carry out business on their behalf.
7.A declaration stating that none of directors, supervisors, or persons serving as managerial officers of the managed futures enterprise have violated Article 55 of the Regulations Governing Managed Futures Enterprises.
8.Documentation showing that the required operating bond has been lodged pursuant to Article 17 of the Regulations Governing Managed Futures Enterprises. When a futures broker or a securities investment consulting enterprise applies to concurrently operate a managed futures enterprise, it shall also submit documentation showing allocation of operating capital earmarked for that purpose in accordance with Article 15, paragraph 2 herein and documentation showing that paid-in capital conforms with the requirements of Article 15, paragraph 4 herein.
9.Documentation showing compliance with the provisions of Article 7.
10.A case review checklist.
11.A declaration stating that the application and attachments contain no misrepresentation or concealment.
The internal control system of subparagraph 2 of the preceding paragraph shall set out preventative measures and risk segregation measures to ensure that there are no conflicts with the interests of customers or with business of the enterprise other than the managed futures enterprise, and no occurrence of acts prejudicial to the rights or interests of customers, in connection with codes governing the concurrent appointment and conduct for persons serving as managerial officers and associated persons of the managed futures enterprise, the segregation of authority and duties between departments, information sharing, joint use of operating facilities or premises, procedures for handling of business-related disputes, or advertising, public information meetings, and other business promotion activities.
The approval granted to the enterprises first named in paragraph 1 will be revoked upon failure to apply to the competent authority for the issuance of a certificate of license for concurrent operation of a managed futures enterprise within the time period set by paragraph 1. Given a legitimate reason, such an enterprise may apply to the competent authority for an extension prior to the deadline; such an extension shall not exceed six months and shall be granted one time only.
A managed futures enterprise concurrently operated by an enterprise named in paragraph 1 that enters the Futures Association under any designation other than managed futures enterprise may not commence the business operations of a managed futures enterprise.

When a foreign futures broker establishes a branch unit within the ROC, and when permission is granted by its head office along with a declaration by the head office that it is allowed to operate discretionary futures trading in its home country, the foreign futures broker may apply for concurrent operation of a managed futures enterprise by a branch unit in the ROC.
When a foreign futures broker applies for concurrent operation of a managed futures enterprise by a branch unit in the ROC, it shall submit a certified copy of the minutes of the board of directors meeting at which it was resolved to do so and a power of attorney for the designated representative appointed to handle the application for concurrent operation of the managed futures enterprise.
The provisions of Article 15 paragraphs 2 and 3, Article 16, Article 17, Article 18 paragraph 1, Article 19, Article 23, and the supplementary provisions of Chapter 5 apply mutatis mutandis to the application of a foreign futures broker for concurrent operation of a managed futures enterprise by a branch unit within the ROC.

When a futures broker, futures trust enterprise, securities investment trust enterprise, or securities investment consulting enterprise that concurrently operates a managed futures enterprise applies for promotion and solicitation of business by existing branch units in relation to the business activities allowed for enterprises concurrently operating managed futures business, it shall apply to the competent authority for permission by filling out an application form with the following documents attached:
1.The certificate of incorporation of the branch unit.
2.An operations plan, setting out the operating principles by which the branch unit shall carry out promotions and solicitations in relation to the business activities allowed for the concurrent operation of a managed futures enterprise, its internal organization and divisions, a personnel recruiting and training plan, a general description of the site and facilities, and a financial status forecast for the first year of operations.
3.The minutes of the board of directors meeting at which it was resolved that the branch unit could carry out promotions and solicitations in relation to the business activities allowed for the concurrent operation of a managed futures enterprise.
4.A description of the internal control system for the branch unit. The internal control system need not be submitted, however, when it is the same as one submitted for the enterprise's previous application for permission for the branch unit to carry out promotions and solicitations in relation to the business activities allowed for the concurrent operation of a managed futures enterprise.
5.A CPA audited and attested financial report for the most recent period. When the application is submitted more than six months after the beginning of the fiscal year, a CPA audited and attested financial report for the first six months of the year shall also be submitted.
6.A case review checklist.
7.A declaration stating that the application form and attached documents contain no concealment or misrepresentation of fact.
The internal control system under subparagraph 4 of the preceding paragraph shall include a code governing the concurrent duties and the conduct of the managerial officers and associated persons of the branch unit carrying out promotions and solicitations in relation to the business activities allowed for the concurrent operation of a managed futures enterprise.
When the enterprises named in paragraph 1 apply for promotions and solicitations by a branch office in relation to the business activities allowed for the concurrent operation of a managed futures enterprise, the provisions of Article 24 will apply mutatis mutandis to the qualifications required for each such enterprise.

Within six months after receiving approval from the competent authority, a futures broker, futures trust enterprise, securities investment trust enterprise, or securities investment consulting enterprise that submits an application in accordance with the preceding article shall fill out an application form, attaching the following documents, and apply to the competent authority for a certificate of license for the promotions and solicitations by its branch office in relation to the business activities allowed for the concurrent operation of a managed futures enterprise:
1.A CPA audited and attested financial report for the most recent period. The report need not be attached if it is for the same period as the report attached with the application for approval for existing branch units to promote and solicit business in relation to the business activities allowed for enterprises concurrently operating managed futures business.
2.A register, issued by the Futures Association, of the managerial officers and associated persons for the branch unit who have passed the review of their qualifications, with documentation showing their qualifications.
3.A declaration stating that none of the circumstances of Article 5 apply to the managerial officers and associated persons of the branch unit.
4.A declaration stating that none of the managerial officers of the branch unit have violated Article 55 of the Regulations Governing Managed Futures Enterprises.
5.Documentation showing compliance with the provisions of Article 7.
6.A case review checklist.
7.A declaration stating that the application and attachments contain no misrepresentation or concealment.
An approval granted to an enterprises named in the preceding paragraph will be revoked upon failure to apply to the competent authority for the issuance of a certificate of license for the promotions and solicitations by its branch office in relation to the business activities allowed for the concurrent operation of a managed futures enterprise within the time period set by the preceding paragraph. With a legitimate reason, such an enterprise may apply to the competent authority for an extension prior to the deadline; such an extension may not exceed six months and shall be granted one time only.
An enterprise named in paragraph 1 that obtains a certificate of license for promotions and solicitations by its branch office in relation to the business activities allowed for the concurrent operation of a managed futures enterprise but fails to carry out recordation of the matter with the Futures Association may not commence operating the business of a managed futures enterprise.

Under any of the following circumstances, the competent authority may refuse to grant approval to an application for the concurrent operation of a managed futures enterprise by a futures broker, futures trust enterprise, securities investment trust enterprise, or securities investment consulting enterprise:
1.The operations plan or the internal control system lacks specificity or cannot be effectively implemented.
2.One of the circumstances of Article 5 applies to a director, supervisor, or person serving as managerial officer of the managed futures enterprise.
3.Persons serving as managerial officers or associated persons of the managed futures enterprise fail to meet the qualifications of Article 49 or Article 51 of the Regulations Governing Managed Futures Enterprises.
4.A director, supervisor, or person serving as managerial officer of the managed futures enterprise violates Article 55 of the Regulations Governing Managed Futures Enterprises.
5.Misrepresentation or concealment is discovered in the content or matters set out in the application form.
6.Other circumstances under which refusal to grant approval is deemed necessary to protect the public interest.