A trust enterprise intending to offer and issue a collective trust fund of which 50 percent or more of the offered and issued amount is to be invested in the securities set out in Article 6 of the Securities and Exchange Act, or from which NT$1 billion or higher are available for investment in the securities set out in Article 6 of the Securities and Exchange Act, shall file an application pursuant to the SITC Act for concurrent operation of securities investment trust business before it may carry out such offering. This requirement shall not apply, however, to the offering and issuance of a money market collective trust fund.

A trust enterprise applying to concurrently operate securities investment trust business pursuant to the provisions of Article 6 of the SITC Act and to the preceding article shall meet the following conditions:
1.Has net worth per share of not less than par value, as shown in the CPA-audited and certified financial report for the most recent period.
2.Has not, during the last half year, been sanctioned under Article 103, subparagraph 1 of the SITC Act, Article 66, subparagraph 1 of the Securities and Exchange Act, or Article 100, paragraph 1, subparagraph 1 of the Futures Trading Act, and has not on 3 or more occasions been given an official reprimand and ordered to achieve improvement within a specified period of time under Article 44 of the Trust Enterprise Act.
3.Has not, during the last two years, been sanctioned under Article 103, subparagraphs 2 to 5 of the SITC Act, Article 66, subparagraphs 2 to 4 of the Securities and Exchange Act, or Article 100, paragraph 1, subparagraphs 2 to 4 of the Futures Trading Act, or sanctioned under Article 44, subparagraphs 1 to 3 of the Trust Enterprise Act.

A trust enterprise applying to concurrently operate securities investment trust business pursuant to these Standards shall do so in its institutional name.

A trust enterprise that concurrently operates securities investment trust business shall allocate operating capital for that purpose in an amount as specified in Article 7.
The operating capital that the trust enterprise has allocated for its concurrently operated discretionary investment business, if any, may be calculated into the amount referred to in the preceding paragraph.
The operating capital that the trust enterprise allocates for its concurrently operated securities investment trust business may be used only for that exclusive purpose, and, unless an application has been made for concurrent operation of discretionary investment business pursuant to Article 65 of the SITC Act, or except as otherwise provided by law, may not be used for purposes other than for securities investment trust business.

A trust enterprise concurrently operating securities investment trust business shall set up an investment analysis department. This requirement does not apply, however, if the trust enterprise has already set up an investment analysis department for another line of business it operates.
In a trust enterprise that concurrently operates securities investment trust business, the functions of associated persons engaging in investment or trading decision-making for that business may not be performed concurrently by personnel engaging in decision-making for investment or trading in collective trust fund business or with the enterprise's own money, and vice versa.

A trust enterprise intending to concurrently operate securities investment trust business shall apply to the FSC for permission by filling out and submitting an application form, together with the following documents:
1.A business plan, specifying, with respect the concurrently operated securities investment trust business: operational principles; internal organization and segregation of duties; planning for offering and issuance of collective trust funds intended for investment in securities, and for business development, for the coming 2 years; personnel recruitment and training; and general description of premises and facilities.
2.Minutes of the relevant board of directors meetings, showing the resolution to concurrently operate securities investment trust business. If the trust enterprise is a foreign bank, documents bearing the signature of an entity or person authorized by the head office may be submitted in lieu thereof.
3.A register of directors and supervisors.
4.A register of qualified department supervisors and associated persons, issued by the SITCA after reviewing their qualifications, together with documentary proof of their qualifications.
5.Written statement(s) that none of the circumstances in Article 68 of the SITC Act exists with respect to any director, supervisor, department supervisor, or associated person. If the trust enterprise is a foreign bank, documents bearing the signature of an entity or person authorized by the head office may be submitted in lieu of written statements from directors and supervisors.
6.Written statement(s) that none of the circumstances in Article 78, paragraph 3 of the SITC Act exists with respect to any responsible person or department supervisor.
7.The CPA-audited and certified financial report for the most recent period.
8.A written description of the internal control system for the concurrently operated securities investment trust business, and an unqualified audit opinion letter issued by a CPA.
9.A written statement that the application form and its attachments contain no misrepresentations or nondisclosures.

A trust enterprise applying to concurrently operate securities investment trust business shall, within 6 months from the day the FSC grants permission, submit the following documents and register in compliance with the requirements of the FSC Banking Bureau:
1.A photocopy of the letter of permission issued in response to the trust enterprise's application to concurrently operate securities investment trust business.
2.A register of qualified department supervisors and associated persons, issued by the SITCA after reviewing their qualifications, together with documentary proof of their qualifications.
3.Documentary proof evidencing allocation of operating capital.
4.Documentary proof of admission to membership in the SITCA.
A trust enterprise permitted to concurrently operate securities investment trust business may not commence such business unless and until it has become a member of the SITCA.

Upon an application by a trust enterprise to concurrently operate a securities investment trust business, the FSC may deny permission in any of the following circumstances:
1.Any violation of Article 68 or Article 78, paragraph 3 of the SITC Act with respect to any responsible person or department supervisor.
2.The business plan, or the system of internal controls over the concurrently operated securities investment trust business, is not concrete enough or cannot be effectively implemented.
3.The application documents are found to contain any misrepresentation.