A trust enterprise that concurrently provides discretionary investment services shall allocate a sufficient number of competent supervisory personnel and associated persons for conduct of the business.
No associated person of the preceding paragraph that carries out research and analysis and makes investment or trading decisions may concurrently serve as an associated person that executes transactions; in addition, no associated person that makes investment or trading decisions [in discretionary trading] may concurrently serve as an associated person that makes investment or trading decisions in collective trust fund business, the offering of securities investment trust funds, the business of offering of futures trust funds to unspecified persons, or trading or investment carried out with the enterprise's own funds.
A trust enterprise that concurrently conducts discretionary investment business may keep the trust assets in its own custody; if it keeps the trust assets in its own custody it shall designate a person to be exclusively responsible for handling custodial matters.

The total amount accepted for investment purposes by a trust enterprise conducting discretionary investment business may not exceed 20 times its allocated operating capital, provided that this restriction does not apply to a trust enterprise with allocated operating capital of NT$300 million or more.
The total amount accepted for investment purposes under the preceding paragraph shall be calculated as an aggregate inclusive of those amounts the enterprise also concurrently accepts for mandate-type and trust-type discretionary investment business.
When the combined allocated operating capital of a trust enterprise for its conduct of discretionary investment services of both mandate types and discretionary types equals NT$300 million or more and it has lodged an NT$25 million operating bond in accordance with Article 10, the total amount it accepts for investment purposes under the mandate type shall not be subject to a ceiling of 20 times the operating capital allocated for mandate-type services.

A trust enterprise concurrently conducting discretionary investment services that has already set aside a compensation reserve shall be exempt from the requirement to provide an operating bond.

When a trust enterprise concurrently conducts discretionary investment business, its directors, supervisors, managerial officers, associated persons, and employees shall abide by applicable laws and regulations, and may not commit any of the following acts:
1. Using information they gain regarding trust assets in the course of professional duties to carry out trades of securities or securities-related products for the enterprise's own account or for any party other than the customer or the beneficial owner associated with the trust assets.
2. Undertaking a trade damaging to the rights and interests of the customer or beneficial owner when using the trust assets in transactions in securities or securities-related products.
3. Signing any agreement with the customer or beneficial owner to share proceeds or losses resulting from investment in securities or securities-related products, provided that this restriction does not apply where the FSC has otherwise made provision for performance compensation.
4. Purchasing or selling securities for the benefit of themselves or any other person when using the trust assets to trade securities or securities-related products.
5. Using trust assets to perform cross trading with one's own assets or other assets of which the enterprise is trustee, provided that this restriction does not apply to a trade made on a centralized securities exchange market or at a securities firm's place of business when the resulting cross trade was not deliberately produced.
6. Using a customer's trust assets to trade securities or securities-related products and, without legitimate reason, changing an executed order on the customer's trust account into an order on the enterprise's own account, the account of another party, or another trust account, or changing an order on another account into an order on the customer's trust account.
7. Using the trust account to trade securities or securities-related products on the enterprise's own account or the account of another party.
8. Making an investment decision not based on an investment analysis report, or based on an investment analysis report lacking a reasonable analytical basis or source data, provided that this restriction does not apply when a reasonable basis for the decision can be furnished.
9. Any other act prejudicial to the operation of the enterprise or the rights and interests of the customer.

When a trust enterprise concurrently provides discretionary investment services, the trustee shall itself handle trust affairs, provided that with the consent of the customer and the beneficial owner, it may cause a third party to undertake trust affairs on its behalf.
The third party referred to in the preceding paragraph who may act as agent for the trustee in handling discretionary investment affairs may only do so on behalf of trust enterprises that have FSC approval for concurrent operation of discretionary investment business, and on behalf of SITEs or SICEs that may conduct discretionary investment business.

A trust agreement between a trust enterprise and a customer shall set out the items listed in the subparagraphs of Article 19, paragraph 1 of the Trust Enterprise Act, and when the concurrent operation of discretionary investment business is involved, the agreement shall also set out the following matters:
1. Designation of the securities broker or futures broker, and any change in that designation.
2. The obligation to give notice of any material change and the means of notice.
3. Provisions for handling of breach of contract.
4. A method for resolution of disputes, and the court of jurisdiction.
5. Other matters as prescribed by the FSC.
The provisions of subparagraph 1 of the preceding paragraph do not apply when the trust enterprise undertakes management and employment of a collective trust fund.
Information relating to the trust agreement or a collective trust fund management and employment account shall be retained on file for a period of not less than five years from the expiration date of the trust.
The compensation stipulated in the trust agreement may include performance compensation collected in accordance with FSC regulations.
Except where the trust deed provides otherwise, designation of a securities broker or futures broker as referred to in paragraph 1, subparagraph 1 shall be done by the trust enterprise, which in so doing shall give appropriate attention to diversification and avoiding overconcentration. When the trust enterprise and the given securities firm or futures broker are mutually invested or there exists a relationship of control and subordination between them, such fact shall also be divulged in the trust agreement, except in relation to investment in securities through the management and employment of a collective trust fund. Where any circumstance exists as set out in Article 27 of the Trust Enterprise Act, the matter shall be handled according to the stipulations of the trust deed, or prior notice shall be given to and written consent obtained from the beneficial owner.
The SITCA shall adopt regulations to govern mediation procedures with regard to the method of dispute resolution referred to in paragraph 1 subparagraph 4, and shall submit those regulations, and any subsequent amendments thereto, to the FSC for approval.

A trust enterprise that conducts discretionary investment business shall do so in accordance with operating rules.
The operating rules of the preceding paragraph regarding contract signing, account opening, trading, settlement, clearing, investment and trading matters (e.g. analysis reports, decisions, execution records, review reports), and other matters shall be drafted by SITCA and approved by the FSC; the same applies to any amendment thereto.

Discretionary investment trust agreements and the brokerage contracts of securities and futures brokers shall clearly stipulate that a trust enterprise concurrently conducting discretionary investment business will be liable for performance of any obligation arising from use of the discretionary investment assets for investment in securities or trading of securities-related products that exceeds the scope of restrictions provided by law, by regulation, or the trust agreement.
When there is a violation of law or breach of contract by a trust enterprise concurrently conducting discretionary investment business, or when there is injury to a customer or beneficial owner arising out of other causes attributable to the trust enterprise, the enterprise shall be liable for damages in accordance with Article 35 of the Trust Enterprise Act.

The provisions of Article 14, Article 14-1, Articles 16 through 18, Article 19-1 through Article 21, Article 22 paragraph 2 (the forepart) and paragraphs 3 and 4, Article 22-1, Article 23, Article 24, Article 26 paragraph 3, and Articles 28 through 31 apply mutatis mutandis to a trust enterprise concurrently conducting discretionary investment business, provided that the provisions of Article 22 paragraph 3, Article 23, and Article 29 paragraph 2 do not apply where otherwise stipulated between the trust enterprise and the customer.