A futures trust enterprise that offers a futures trust fund to unspecified persons may authorize futures brokerage merchants, futures advisory enterprises, banks, trust enterprises, securities brokers, securities investment consulting enterprises, enterprises for insurance of the person, and other institutions approved by the competent authority to act as fund distributors.
A trust enterprise acting as a fund distributor pursuant to these Regulations may enter into non-discretionary trust of money agreements with their customers for that purpose.

A futures trust fund distributor shall meet the following requirements for eligibility:
1.A net worth per share no lower than par value in the CPA-audited and attested financial report for the preceding period. This requirement does not apply, however, to futures trust fund distributors who have had their business licenses for less than one full accounting year.
2.Having received no disciplinary sanction pursuant to Article 100, subparagraphs 2 through 5 of the FTA, Article 103, subparagraphs 2 through 6 of the Securities Investment Trust and Consulting Act, Article 66, subparagraphs 2 through 5 of the Securities and Exchange Act, Article 44, subparagraphs 1 through 4 of the Trust Enterprise Act, Article 61-1, paragraph 1, subparagraphs 1 through 9 of the Banking Act, or Article 149, paragraph 1, subparagraphs 1 through 7 and paragraph 3 of the Insurance Act within the preceding two years as a result of engaging in futures trust fund, offshore fund, or securities investment trust fund business. This requirement does not apply to dispositions of the competent authority ordering the dismissal of personnel or when there has been substantive improvement, recognized by the competent authority, with regard to the matters in which the distributor was in violation.
3.Not being currently subject to a period of prohibition by order of the competent authority in which it may not serve as a fund distributor for futures trust enterprises due to its violation of these Regulations or the self-regulatory rules of the Futures Association.
4.Sufficient associated persons to carry out futures trust fund sales business and to comply with the provisions of Article 48 of the Regulations Governing Futures Trust Enterprises.
5.The necessary information transmission facilities for executing futures trust fund sales business.
6.Other qualification prescribed by the competent authority.

A futures trust fund distributor shall establish a sales agreement with the futures trust enterprise for which it handles futures trust fund sales, and shall abide by the relevant laws and regulations governing the offering, issuance, sales, advertising, subscription, and redemption of futures trust funds and the self-regulatory rules of the Futures Association.
The matters to be included in the sales agreement that the fund distributor is to establish with the futures trust enterprise in accordance with the preceding paragraph shall be prescribed by the Futures Association and submitted to the competent authority for approval; the same shall apply for any amendment of those matters.

A futures trust enterprise that authorizes a futures trust fund distributor to conduct futures trust fund sales on its behalf may do so only after submitting a declaration stating that the futures trust fund distributor meets the required qualifications, and a copy of the sales agreement, to the Futures Association for review and approval.
A futures trust enterprise may not pay the futures trust fund distributor or its personnel any remuneration, fees, or other benefits not specified in the sales agreement.

A futures trust fund distributor that handles futures trust fund sales business shall fully understand and evaluate the investment knowledge, investment experience, financial condition, and the level of investment risk tolerance of its customers.
A futures trust fund distributor shall require a customer subscribing for the first time to furnish a proof of identity or its juristic person registration and to fill out basic identifying information.
The futures trust fund distributor shall maintain complete and accurate transaction records and documents regarding the purchase, redemption, or conversion of futures trust funds in any transaction of a specified amount or higher or that is suspected of being a money laundering transaction, and shall comply with the provisions of the Money Laundering Control Act.
The futures trust fund distributor shall put in place an internal control system that includes adequate operation principles for Know Your Customer practices, the conduct of sales, prevention of short-swing trades, prevention of money laundering, and compliance with matters prescribed by laws and regulations. The internal control system shall be submitted by the futures trust enterprise to the Futures Association for review.

A futures trust fund distributor may not subscribe to a futures trust fund in its own name on behalf of a customer except by means of non-discretionary trusts of money or as approved by the competent authority.
Except when subscribing to a futures trust fund in its own name on behalf of a customer, a futures trust fund distributor handling futures trust fund sales business shall require that the subscriber remit the funds for the subscription directly into the special futures trust fund account established by the fund custodian, and shall handle the subscription in accordance with the procedural rules prescribed by the Futures Association in regard to the offering, issuance, sale, subscription, and redemption of futures trust funds.

carrying out futures trust fund sales business, the futures trust fund distributor and its managerial officers and employees shall act with all due diligence and fiduciary responsibility and in accordance with the principle of good faith.
When handling futures trust fund sales business, a futures trust fund distributor and its personnel shall maintain the confidentiality of its customers' personal information, their trading histories, and other related information except where laws or regulations provide otherwise.

A futures trust fund distributor that subscribes to a futures trust fund in its own name on behalf of a customer shall fully implement money laundering controls and the measures for prevention of short-swing trading given in the fund's prospectus. For trades by a fund customer that conform to the definition of short-swing trading given in the prospectus, the distributor shall provide the futures trust enterprise with relevant information on the customer in the format prescribed by the competent authority, and the futures trust enterprise may require the fund distributor to refuse any new subscriptions by the given customer.
The futures trust enterprise shall maintain confidentiality of any information provided by the futures trust fund distributor pursuant to the preceding paragraph.

Personnel at a futures trust fund distributor who handle futures trust fund sales business may not misappropriate customer money or beneficial certificates, nor engage in any other act prejudicial to the rights or interests of customers.
Beneficial certificates will be delivered by book-entry transfer; futures trust fund distributors may not be requested to deliver the certificates.

A futures trust fund distributor shall properly preserve all supporting source documents relating to futures trust fund sales business it handles; the method and the period of preservation shall be determined according to the Business Accounting Act and related laws and regulations.
When a customer subscribes to a futures trust fund through any method other than a written application, the futures trust fund distributor shall handle the subscription in accordance with applicable laws and regulations and the rules for electronic trading adopted by the Futures Association.

Upon receiving a notice of a beneficial owner's meeting, a futures trust fund distributor that subscribes to a futures trust fund in its own name on behalf of a customer shall immediately notify its customer of any event with a material impact on customer rights and interests, and shall tabulate the opinions of its customer and notify the futures trust enterprise of the same.

In conducting the business of selling futures trust funds, a futures trust fund distributor shall, before commencing to sell, disclose to the investors any remuneration, fees, or other benefits it receives from the futures trust enterprise.
The futures trust enterprise shall promptly give notice to the investors of any change in the information disclosed under the preceding paragraph.
The enforcement directions for the content of information to be disclosed and notification of changes under the preceding two paragraphs, and any amendments thereto, shall be drafted by the Futures Association and submitted to the FSC for approval.
In conducting the business of selling futures trust funds, a futures trust fund distributor and its personnel may not receive from the futures trust enterprise any remuneration, fees, or other benefits not specified in the sales agreement.

When a futures trust fund distributor terminates its handling of futures trust fund sales business, it shall immediately notify the futures trust enterprise, and within two days after the fact, the termination shall be reported to the Futures Association and publicly announced by the futures trust enterprise.
After the futures trust fund distributor terminates its handling of the sales business of the preceding paragraph and prior to the transfer of any such business to other futures trust fund distributors, the distributor shall assist customers in carrying out any follow-up redemptions, conversions, or other matters relating to the futures trust fund.

a futures trust enterprise discovers that, in the course of handling futures trust fund sales business, a futures trust fund distributor or its personnel have violated applicable laws or regulations or the self-regulatory rules of the Futures Association or have exceeded their scope of authorization, the futures trust enterprise shall immediately supervise the distributor in correcting the matter and shall notify the competent authority.