Investments by futures commission merchants in foreign enterprises shall be limited to those investments set forth in the following subparagraphs:
1. Futures enterprises and enterprises related thereto (including related securities, futures, and financial businesses they are allowed to operate under the local laws and regulations of the country of the investment) in countries and territories that have established a competent authority for futures.
2. Other related enterprises in which the FSC has approved investment
A futures commission merchant or its subsidiaries investing in futures companies in Mainland China area shall do so in accordance with the Regulations Governing Permission and Administration of Securities and Futures Business Dealings and Investment Between the Taiwan Area and the Mainland Area.
A futures commission merchant approved to invest in futures companies in the Mainland China area may not engage in any of the following conduct:
1. To accept engagement to conduct futures brokerage trading in the Mainland China area.
2. To make recommendations to traders in Taiwan to engage in futures trades on the Mainland China futures market.
A futures commission merchant or its subsidiaries investing in futures companies in the Mainland China area may not provide services to Taiwan area individuals or enterprises.
A futures commission merchant or its subsidiaries investing in non-securities/non-futures institutions in Mainland China shall apply for permission with the FSC.

Except where otherwise provided by law or regulation, a futures commission merchant investing in a foreign enterprise shall meet with each of the following requirements:
1. Within the preceding 3 months, the merchant has not received a warning from the FSC.
2. Within the preceding half-year, the merchant has not been ordered by the FSC to discharge or replace a director, supervisor, or managerial officer.
3. Within the preceding 1 year, the merchant has not been ordered by the FSC to suspend its business.
4. Within the preceding 2 years, the merchant has not been sanctioned by the FSC with voidance or revocation of a license of a branch office or any portion of its business.
5. In the preceding 1 year, the merchant has not had its trading rights terminated or restricted by the TWSE, TPEx, TAIFEX or a futures clearing house pursuant to its bylaws.
6. The futures commission merchant's average adjusted net capital for the preceding quarter was not less than 40 percent of the total amount of margin deposits required for futures traders' open positions, and it did not show an accumulated deficit in the financial report (audited and attested by a certified public accountant) for the most recent fiscal period, and it is in compliance with the provisions of Article 17 and Article 23, and none of the situations contemplated under Article 22 apply to it.
7. The total amount invested in foreign and Mainland China enterprises may not exceed 40 percent of a futures commission merchant's net worth, and together with funds used for other purposes approved by the FSC in accordance with Article 23, subparagraph 4 may not exceed 40 percent of a futures commission merchant's net worth. This requirement shall not apply, however, where there is a particular need and special approval is granted.
If a futures commission merchant fails to meet any of the requirements set forth in subparagraphs 1 to 5 of the preceding paragraph, but has shown concrete improvement in the circumstances, and the FSC has recognized the improvement, the futures commission merchant may be exempted from the relevant requirement.

A futures commission merchant applying for new establishment of a foreign enterprise shall submit the following documents in applying to the FSC for approval:
1. Its articles of incorporation.
2. An investment plan, the content of which shall expressly specify the following matters:
A. Investment plan: To include investment objectives, expected returns, sources of funds, a funds utilization plan, a business plan, and a capital recovery plan. For investment in a holding company, a downstream investment plan shall also be submitted.
B. Business management principles: To include the company's location, authorized capital, business to be operated, lines of business, and principles of business management.
C. Organizational structure and allocation of responsibilities: To include at least the company's organizational chart (or a corporate group chart in the case of a holding company) as well as a departmental allocation of responsibilities and division of labor.
D. Personnel plan: To include rules for authorized personnel complement, personnel training, and personnel management.
E. Financial status forecasts for the 1st year after establishment and the year thereafter: To include startup costs, fiscal year financial forecasts, and financial forecast notes.
3. Minutes of shareholders or directors meetings.
4. The financial report for the most recent period, audited and attested by a certified public accountant.
5. For foreign enterprises in which the futures commission merchant holds more than a 50 percent stake via either equity investment or downstream equity investment, the merchant shall adopt a set of management rules, the content of which shall address the following matters:
A. Managerial scope.
B. Managerial direction and principles.
C. Management of financial, business, and accounting operations.
D. Management of assets.
E. Financial statements to be prepared regularly.
F. The method for carrying out regular internal audits of financial and business operations.
G. Other matters: Such as management of personnel operations, and internal control self-assessment with respect to enterprises in which the merchant holds an equity investment.
6. An itemized list of domestic and foreign enterprises in which the merchant holds investments as of the date of application.
7. Other documents as required by FSC regulations.

A futures commission merchant applying to make an equity investment in a foreign enterprise shall submit the following documents in applying the FSC for approval:
1. Its articles of incorporation.
2. Investment plan: To include investment objectives, expected returns, sources of funds, a capital recovery plan, and earnings forecasts for the invested foreign enterprise for the coming 3 years.
3. Minutes of shareholders or directors meetings.
4. The financial report for the most recent period, audited and attested by a certified public accountant.
5. For foreign enterprises in which the futures commission merchant holds more than a 50 percent stake via either equity investment or downstream equity investment, the merchant shall adopt a set of governing rules, the content of which shall address the following matters:
A. Managerial scope.
B. Managerial direction and principles.
C. Management of financial, business, and accounting affairs.
D. Management of assets.
E. Financial statements to be prepared regularly.
F. The method for carrying out regular internal audits of financial and business operations.
G. Other matters: Such as management of personnel operations, and internal control self-assessment with respect to enterprises in which the merchant has made equity investments.
6. An itemized list of domestic and foreign enterprises in which the merchant holds investments as of the date of application.
7. Overall status of the target of the equity investment: To include a company brochure, company organization, capital and stock, the types of business in which the company engages, and its financial status over the preceding 3 fiscal years.
8. Joint venture (or investment) agreement.
9. Other documents as required by FSC regulations.

When any of the following circumstances occurs in connection with any investment after approval by the FSC, the futures commission merchant shall report the reasons to the FSC along with relevant documentation:
1. Change in business items or material operating policies.
2. Change in the original shareholding ratio of the futures commission merchant or its overseas subsidiary.
3. Dissolution or suspension of operations.
4. Change in the institution's name.
5. Merger or consolidation with another financial institution, or assignment to or receipt of assignment from another of all or a major part of assets or operations.
6. Occurrence of reorganization, liquidation, or bankruptcy.
7. Occurrence or foreseeable occurrence of any instance of material loss.
8. Material violation of law or regulation or the voidance or revocation of the business permit by the overseas competent authority.
9. Any other material matter.
Unless otherwise provided by the FSC, the futures commission merchant shall report in advance regarding any circumstance under subparagraphs 1 to 6 of the preceding paragraph. For any circumstance under subparagraphs 7 to 9 of the preceding paragraph, the futures commission merchant shall report within 3 business days from the day on which it becomes aware of the circumstance or on which the circumstance occurs.
After a futures commission merchant receives approval for investment in a foreign enterprise, any evidentiary documents it receives in connection with the outward remittance of funds, or with registration or amendment registration for the foreign investee enterprise, shall be reported within 5 days of their receipt to the FSC for recordation.

Where a foreign subsidiary of a futures commission merchant intends to make an equity investment in another institution, or an institution in which a foreign subsidiary holds an equity investment intends to make a downstream equity reinvestment in another institution, and the intended equity investment would give rise to a relationship of substantive control and subordination, as defined in the chapter on Affiliated Enterprises in the Company Act, between the investor and investee, the investment shall first be reported to the FSC for approval, unless otherwise provided by the FSC.
Where an equity investment is approved by the FSC under the preceding paragraph, within 10 days of its actual execution, it shall be reported and related evidentiary documents submitted to the FSC for recordation.
When a futures commission merchant makes an equity investment in a foreign enterprise, the foreign enterprise management rules that it is required to submit pursuant to the provisions of Article 56-3, subparagraph 5 and Article 56-4, subparagraph 5 may within 10 days of the investment's actual execution be submitted to the FSC for recordation together with the related evidentiary documents required under the preceding paragraph.

An overseas subsidiary of a futures commission merchant may not make a downstream equity investment in any domestic futures-related enterprise.

Within 3 months from the date of approval by the FSC, a futures commission merchant that invests in a foreign enterprise shall file for approval or recordation with the Ministry of Economic Affairs Investment Commission in accordance with regulations.
Where a futures commission merchant fails to file with the Investment Commission in accordance with the preceding paragraph, the FSC may void the original approval.

Unless otherwise provided by the FSC, a futures commission merchant that has made an equity investment in an overseas enterprise(s) as approved by the FSC shall do the following:
1. Submit to the FSC, within 15 days after the end of each quarter, an operations report on the invested overseas subsidiary(ies), including the status of business operations, revenues and expenditures, and an evaluation of the efficiency of the investment.
2. Submit a report on the basic company information and operational status of the invested overseas enterprise(s) along with the monthly accounting summary.
3. Submit other information or documentation as required by the FSC.
Matters that must be reported pursuant to the preceding paragraph shall be submitted to the FSC via the TAIFEX.

Regarding investments that have been approved by the FSC under Article 56-3 or 56-4, if the futures commission merchant meets the qualification requirements set out in Article 56-2, paragraph 1, subparagraphs 1 to 5, it may submit the documents set out in Article 56-4, subparagraphs 1 to 3 and 7 to apply to the FSC for approval of an increase in the amount of investment in the overseas enterprise.