A futures trust enterprise shall perform business operations in accordance with the Act, with orders issued under the Act, and with contractual requirements and, in doing so, shall fulfill the duty of care and fiduciary duty of a good administrator, and shall act in good faith.
Except as otherwise provided by law or regulation, the enterprise under the preceding paragraph may not engage in any of the following conduct:
1. Divulging information obtained in the course of business to others or using such information for the purposes of engaging in activities involving futures trading or transactions in futures-related spot instruments.
2. When using assets of a futures trust fund to engage in futures trading or transactions in futures-related spot instruments, making purchases or sales for its own benefit or for the benefit of any other party, or, without legitimate reason, engaging in cross trading by taking the other side of an order placed with the investment capital of the trust fund.
3. Engaging in any conduct that is false, deceptive, or could be misleading.
4. When using assets of a futures trust fund to engage in futures trading or transactions in futures-related spot instruments, failing to allocate into the assets of the fund any handling fee returned, or other benefit paid, by a securities firm, futures commission merchant, or any other counterparty.
5. Promoting the sale of beneficial certificates by agreeing upon or providing any specific benefit or consideration or by agreeing to absorb loss.
6. Accepting money or other benefit in exchange for the transfer of a shareholder meeting proxy or for the exercise of voting rights attached to shares held by the futures trust fund.
7. When using assets of a futures trust fund to engage in trading or investment activities, attempting to inflate or deflate the trading price of a certain futures trading contract or futures-related spot instrument, or engaging in any other conduct that could prejudice the interests of investors of the futures trust fund.
8. When using assets of a futures trust fund to engage in futures trading or transactions in futures-related spot instruments, changing an executed trading order from the account of the fund to an account of its own or of any other party, or from an account of its own or of any other party to the account of the fund.
9. Making any recommendation or providing advice on trading strategies for trading in a particular futures trading contract or a particular security, or providing analysis or forecast or advice services about the future trading price of a particular futures trading contract or a particular security, in a public setting or though mass media.
10. Using non-full-time personnel to solicit customers or providing unreasonable commissions.
11. Conducting business operations at a place not registered as its place of business.
12. Engaging in any other conduct that would adversely affect the interests of customers or the operation of its business.
Except as otherwise provided by law or regulation, the enterprise under paragraph 1 shall maintain the confidentiality of customers' personal information, trading histories, and other relevant information.
A futures trust enterprise shall adopt and implement rules governing the administration of internal personnel in accordance with requirements of the Association.

After being issued a business license, a futures trust enterprise shall apply to offer a futures trust fund within 1 month, and shall comply with the Regulations Governing Futures Trust Funds.
If the futures trust enterprise fails to submit an application or to offer and establish a futures trust fund in accordance the preceding paragraph, its business permission shall be revoked and it shall be notified to surrender its permission license for cancellation within a prescribed time limit, or, if the permission license is not surrendered within the time limit, it shall be cancelled by the competent authority through public notice.
Except as otherwise prescribed by the competent authority, if an enterprise in another line of business that has permission to concurrently operate a futures trust enterprise fails to apply to offer a futures trust fund within 2 years after receiving the permission from the competent authority and completing the registration procedure, the permission for such concurrent operation shall be revoked.

A futures trust enterprise may not offer a futures trust fund without the approval of the competent authority; the documents required to be submitted when such an enterprise applies for approval, as well as the review procedure, approval conditions, and other compliance requirements shall be subject to the Regulations Governing Futures Trust Funds.

A futures trust enterprise and its fund custodian shall make available for review at their places of business and at the places of business of any fund distributors the prospectus for any futures trust fund, the relevant offering documents, the futures trust agreement, and the most recent financial report.
The prospectus and most recent financial report under the preceding paragraph shall also be uploaded to an information reporting website designated by the competent authority. This provision does not apply to an enterprise in another line of business concurrently operating a futures trust enterprise if it has carried out public notice matters for the most recent financial report on a designated website in accordance with Article 39 of the Trust Enterprise Act or Article 21 of the Regulations Governing Securities Investment Trust Enterprises.

Before accepting a customer's request to subscribe for beneficial certificates of a futures trust fund, a futures trust enterprise shall furnish a risk disclosure statement to inform the subscriber of the nature and potential risks of the futures trust fund.
The risk disclosure statement referred to in the preceding paragraph shall be signed or sealed and dated by the subscriber, with one copy thereof to be retained by the futures trust enterprise and one copy to be delivered to and kept by the subscriber.
If a customer has previous experience of buying shares of another futures trust fund that is similar in nature and source of risk, a futures trust enterprise, if consented to by the customer, need not inform the customer of the nature and potential risks of its futures trust fund as required in paragraph 1, but shall still furnish a risk disclosure statement and retain a copy of the customer's consent letter agreeing to the non-receipt of such information, a risk disclosure statement bearing the signature of the customer, and other relevant evidentiary documentation.

Rules governing the format, content, preparation, dissemination, regulatory filing, and other relevant aspects of any promotional and advertising materials of futures trust enterprises and their fund distributors, and any amendments thereto, shall be adopted by the Association and reported to the competent authority for recordation.
The promotional and advertising materials referred to in the preceding paragraph and related records shall be preserved for 2 years.
The competent authority or an institution designated thereby may from time to time sample and inspect the promotional and advertising materials and related records of a futures trust enterprise, and the futures trust enterprise may not refuse or interfere.

A futures trust enterprise may not engage in any of the following conduct in the course of conducting any advertising campaign, public information meeting, or other sales promotion activity:
1. Using the fact that a futures trust fund has been approved by the competent authority as publicity as if to verify any subject matter of the application or guarantee the value of beneficial certificates.
2. Inducing mistaken belief that the security of the principal amount can be guaranteed or that profit can be guaranteed.
3. Offering gifts or other benefits as an inducement to purchase beneficial certificates, provided that this restriction shall not apply where otherwise provided by the competent authority.
4. Publicity that exaggerates past performance or advertising that attacks industry competitors.
5. Any conduct that is false, deceptive, or could be misleading.
6. Conducting any advance publicity, advertising or other promotional activity for a futures trust fund whose offering has not been approved by the competent authority.
7. Disseminating information that contravenes any law or regulation or the futures trust agreement, or that otherwise conflicts with any information contained in the prospectus.
8. Making forecasts about the performance of a futures trust fund.
9. Promoting the sales of a futures trust fund in a way that involves speculation about future trends in the exchange rate of the New Taiwan Dollar.
10. Any other conduct prejudicial to the operation of business or to the interests of beneficial owners.
If a fund distributor appointed by the futures trust enterprise violates any provision of the preceding paragraph in the course of conducting advertising, a public information meeting, or other sales promotion activity for or on behalf of the fund, the futures trust enterprise and its fund distributor shall bear liability for the violation in accordance with applicable laws and regulations.

A futures trust enterprise shall fully understand and assess each customer's investment knowledge, investment experience, financial condition, and degree of risk tolerance.
The futures trust enterprise or its fund distributor shall require each and all first-time subscription customers to furnish identification or incorporation documentation and to fill out their basic information.
The futures trust enterprise or its fund distributor shall process any request for the subscription or redemption of a futures trust fund in accordance with the futures trust agreement, the prospectus, and the Association's Operating Procedures for the Offering, Issuance, and Sale of Futures Trust Funds and their Subscription and Redemption. For fund transactions that are above a specific amount or suspected of being money-laundering transactions, complete and accurate transaction records and documentation on subscription, redemption, or conversion shall be retained, and the provisions of the Money Laundering Control Act shall be complied with.
When the futures trust enterprise pays a redemption price to a beneficial owner whose redemption in that specific case constitutes a short-swing trade according to the standards for determining short-swing trades for the given fund, the futures trust enterprise shall deduct from the redemption price a redemption fee for short-swing trading in the fund, in accordance with the provisions of the fund prospectus, which redemption fee shall be allocated into the assets of the fund.
The futures trust enterprise's internal control system shall include operating principles regarding know-your-customer rules, sales conduct, prevention of short-swing trading, control of money laundering, and other operating principles required by applicable laws and regulations.

Except as otherwise provided by law or regulation, a futures trust enterprise exercising the voting rights attached to shares held by a futures trust fund shall do so through an internal person appointed as representative by the futures trust enterprise.
A futures trust enterprise exercising the voting rights under the preceding paragraph shall do so for the greatest benefit of the beneficial owners and may not participate, directly or indirectly, in the operation of the issuing company or otherwise make any inappropriate arrangements.
Before attending a shareholders' meeting of an issuing company in which its fund holds shares, a futures trust enterprise shall prepare a written description of the assessment and analysis procedures it has performed as to the exercise of the voting rights.
A futures trust enterprise shall record and manage any notices of and admission tickets to the shareholders' meetings of issuer companies in which its futures trust fund holds shares, and shall document the details of its attendance and exercise of voting rights at each such shareholders' meeting, the assessment and analysis procedures for the exercise of voting rights, the decision-making process, and the voting results, to be numbered in sequential order and kept in separate files, and preserved for a period of not less than 5 years.
A futures trust enterprise attending a meeting of beneficial owners of another fund in which its futures trust fund holds shares or units, shall exercise the voting rights for the greatest benefit of all beneficial owners of the futures trust fund, and shall observe the provisions of the preceding two paragraphs that apply mutatis mutandis.

A futures trust enterprises shall keep all business-related certificates, vouchers, account books, statements, reports, records, contracts, and other relevant documents at its place of business and make them available at all times for audit by the competent authority or by a institution designated by the competent authority.
The certificates, vouchers, account books, statements, reports, records, contracts, and other relevant documents as referred to in the preceding paragraph shall be preserved in a manner and for a period of years that comply with the provisions of the Business Accounting Act and other applicable laws and regulations, as well as the applicable requirements adopted by the Association.
The applicable requirements adopted by the Association as referred to in the preceding paragraph, and any amendments thereto, shall be filed with the competent authority for recordation.

The competent authority or an institution designated by the competent authority may conduct audits of the business operations, finances, and other necessary aspects of a futures trust enterprise.
The futures trust enterprises shall provide such explanatory information and such relevant documents as may be required for audits under the preceding paragraph.

By the tenth day of each month, a futures trust enterprise shall file with the Association any and all relevant operational statements covering its operation of futures trust business during the prior month.
The format of the relevant operational statements under the preceding paragraph, and any amendments thereto, shall be determined by the Association and filed with the competent authority for recordation.

If a futures trust enterprise is unable to continue its business operations related to a futures trust fund because of bankruptcy, dissolution, suspension or closure of business, or voidance or revocation of its business permission, it shall arrange for another futures trust enterprise to succeed to its business operations related to the futures trust fund, subject to the approval of the competent authority.
If a futures trust enterprise fails to take the action under the preceding paragraph, the competent authority may designate another futures trust enterprise as successor; the designated futures trust enterprise may not refuse such designation unless it reports to and receives approval from the competent authority based on a legitimate reason.
If there is obvious mismanagement of a futures trust fund on the part of a futures trust enterprise, the competent authority may order the enterprise to transfer the fund to be managed by another futures trust enterprise designated by the competent authority.
In the event of any succession or transfer under any of the preceding three paragraphs, the successor futures trust enterprise shall make a public notice.
Before the competent authority makes a designation or order under paragraph 2 or 3 above, arrangements for another futures trust enterprise to be successor may be coordinated through the Association.