A futures broker, managed futures enterprise, securities broker, or securities investment consulting enterprise ("SICE") approved by the competent authority for concurrent operation of a futures advisory enterprise shall first carry out company amendment registration, then deposit an operating bond of NT$10 million with a financial institution designated by the competent authority.
The financial institution referred to in the preceding paragraph shall be a bank that is approved by the competent authority to operate custodial business, and meets the conditions prescribed by the competent authority.
The operating bond referred to in the preceding paragraph shall be deposited in the form of cash, domestic government bonds, or securities with a credit rating at or above a prescribed level issued by a credit rating agency approved or recognized by the competent authority.
The operating bond deposited by an enterprise named in paragraph 1 that concurrently operates a futures advisory enterprise may not be deposited in multiple accounts, reported lost, or rescinded; no security interest may be created on the things deposited or on their certificates of custody, nor may those items be withdrawn or swapped for other items without the approval of the competent authority. When a withdrawal is made to exchange one form of operating bond for another, and the total monetary amount of the bond remains unchanged, the custodian institution shall report the circumstances of the change to the competent authority within three days of its occurrence.

Before a futures advisory enterprise accepts a commission from a principal to provide futures trading consultation services, it shall inform the principal of the natures of the various futures products, trading terms and conditions, and possible risks.
The futures advisory enterprise shall sign a written mandate contract with the principal, which shall include the following main content:
1.The names and addresses of the parties to the contract.
2.The conditions and time limit under which the contract may be rescinded after signing.
3.Stipulations regarding the scope of research, opinions, and recommendations to be provided, and any amendment of the same.
4.The manner in which services will be provided (including reporting obligations).
5.The futures advisory enterprise's duty of care of a good custodian and its confidentiality obligations.
6.The means of calculating expenses and compensation for the commissioned services, and the manner and time of payment.
7.The date on which the contract takes effect and the valid duration of the contract.
8.Provisions for amendment and termination of the contract.
9.The obligation to give notice of any material change and the means of notice.
10.The rate of refund on compensation already paid and to which the principal is entitled after termination of contract, and the means of payment. The contract shall also state which fees cannot be returned and their amounts or method of calculation.
11.Provisions for bankruptcy, dissolution, dispositions requiring suspension of business, or cancellation or revocation of the business permission.
12.Provisions for dispute resolution, and the relevant jurisdictional court.
13.Other necessary provisions in regard to the rights and obligations of the parties to the contract.
A contract template for the mandate contract referred to in the preceding paragraph shall be drafted by the Futures Association and submitted to the competent authority for recordation; the same shall be true for any amendments to the contract template.
The mandate contract entered into by the futures advisory enterprise pursuant to paragraph 2 of this article shall be retained for a period of five years from the date on which the mandate relationship is extinguished, provided that where there is any dispute, the contract shall be retained until the conclusion of the dispute.

A futures advisory enterprise providing the advisory services of Article 2, paragraph 1, subparagraph 1 shall produce a research report providing the analytical basis and research sources.
Prior to being provided to the principal, the futures trading research opinions and recommendations and related information referred to in the preceding paragraph may not be provided or transmitted to any futures broker, managed futures enterprise, securities broker, or SICE department other than that responsible for futures advisory business, and the information or opinions of another department may not be used as an analytical basis or research source.
Copies and records of the research reports referred to in paragraph 1 shall be retained for a period of five years from the date of provision of the reports. Electronic formats may be employed as the method for retention of those reports and records.

Regulations relating to the form, content, production, and dissemination of promotional and advertising materials by a futures advisory enterprise, and any amendments thereto, shall be drafted by the Futures Association and submitted to the competent authority for recordation.
The promotional and advertising materials referred to in the preceding paragraph and related records shall be retained for a period of two years.
The competent authority may at any time make a spot check of the promotional and advertising materials and related records, and the futures advisory enterprise may not refuse or impede such inspection.

None of the following may be employed by a futures advisory enterprise in its text, graphic, or verbal promotions, or in advertising produced for dissemination in newspapers, magazines, radio, television, electronic transmission systems, or other mass media in the course of soliciting business:
1.The use of false statements, high-pressure sales tactics, or claims that futures trading is suitable for all individuals.
2.Concealment of important facts with the likelihood of creating mistaken belief.
3.Emphasizing profits while failing to explain related risks.
4.The use of graphs, formulas, computer software or other tools for technical analyses of futures without a clear explanation of their functional limitations.
5.An unbalanced presentation in advertisements of the facts which are advantageous or disadvantageous to the futures advisory enterprise itself, or other types of exaggerated representation of content.
6.Making representations that it guarantees profits or will bear losses.
7.Using letters of recommendation, thank-you letters, records of past performance, or any other text or representation that could easily cause people to believe in the certainty of profit.
8.Any other circumstance in which exaggeration, bias, or the likelihood of misleading the counterparty would occur.

A futures advisory enterprise which by means of publications, lectures, or courses, or through other media including television, telephone, telegraph, facsimile, the Internet, or other forms of electronic transmission or broadcast media engages in the consulting services of Article 2, paragraph 1, subparagraph 1 with respect to unspecified persons other than principals, in addition to conduct prohibited under Article 25 herein, also may not engage in the following conduct:
1.Judgments or recommendations involving the future trading price of individual futures contracts or the provision of recommendations about trading strategies;
2.Advertising activity of any kind for the purpose of soliciting clients during the course of futures trading analyses offered over broadcast media;
3.Any conduct that involves conflicts of interest, fraud, misrepresentation, or an attempt to influence market conditions;
4.Failure to provide a reasonable analytical basis for any judgment on or analysis of market conditions;
5.Engaging in futures trading analysis or the production and issuance of written materials under anything other than the company name, such as the name of an associated person or an internal research unit;
6.Violation of the self-regulatory rules of the Futures Association.
The self-regulatory rules referred to in the preceding paragraph shall be adopted by the Federation of Futures Industry Associations and implemented after submission to the competent authority for approval; the same shall apply to any amendments thereto.

Futures advisory enterprises shall keep all certificates, vouchers, account books, statistical forms, records, contracts, and related evidentiary documents at their places of business, available at all time for inspection by the competent authority, the Futures Exchange, or institutions designated by the competent authority.
The period for which the certificates, receipts, account books, statistical forms, records, contracts, and related evidentiary documents referred to in the preceding paragraph shall be retained shall be determined according to the Business Accounting Act and other applicable laws and regulations.

The competent authority, the Futures Exchange, or institutions designated by the competent authority may undertake inspections of the futures advisory enterprise's operations, finances, or other necessary matters.
Futures advisory enterprises shall provide explanations and relevant documentation in regard to the inspections referred to in the preceding paragraph.

Articles 5, 8, and 13 of the Rules Governing Futures Commission Merchants shall apply mutatis mutandis with regard to futures advisory enterprises.