A managed futures enterprise that possess the following qualifications may apply to establish a branch unit to carry out promotions and solicitations in connection with the business that may be operated by a managed futures enterprise:
1.It must have been in operation one full year, provided that the establishment of a branch unit through merger or acquisition shall not be subject to this requirement.
2.It must have a net value per share not lower than par value as stated in the CPA audited and attested financial report for the most recent period.
3.It must not have received any disposition issued pursuant to Article 100, paragraph 1, subparagraph 1 of the Futures Trading Act, Article 103, subparagraph 1 of the Securities Investment Trust and Consulting Act, or Article 66, subparagraph 1 of the Securities and Exchange Act within the past three months.
4.It must not have received any disposition issued pursuant to Article 100, paragraph 1, subparagraph 2 of the Futures Trading Act, Article 103, subparagraphs 2 or 3 of the Securities Investment Trust and Consulting Act, or Article 66, subparagraph 2 of the Securities and Exchange Act within the past half year.
5.It must not have received any disposition issued pursuant to Article 100, paragraph 1, subparagraph 3 of the Futures Trading Act, Article 103, subparagraph 4 of the Securities Investment Trust and Consulting Act, or Article 66, subparagraph 3 of the Securities and Exchange Act within the past six months.
6.It must not have received any disposition issued pursuant to Article 100, paragraph 1, subparagraph 4 of the Futures Trading Act, Article 103, subparagraph 5 of the Securities Investment Trust and Consulting Act, or Article 66, subparagraph 4 of the Securities and Exchange Act within the past two years.
A managed futures enterprise that does not meet the conditions of subparagraphs 3 through 6 of the preceding paragraph but has made substantive improvement and received approval from the competent authority is not subject to the restrictions of subparagraph 4.

A managed futures enterprise that establishes a branch unit to carry out promotions and solicitations for the business it is allowed to operate shall apply to the competent authority for approval by filling out an application form with the following documents attached:
1.A copy of its articles of incorporation.
2.An operations plan, setting out the operating principles by which the branch unit shall carry out promotions and solicitations in relation to the business activities allowed for the concurrent operation of a managed futures enterprise, its internal organization and divisions, a personnel recruiting and training plan, a general description of the site and facilities, and a financial status forecast for the first year of operations.
3.The minutes of the board of directors meeting at which it resolved that the branch unit could carry out promotions and solicitations in relation to the business activities allowed for the concurrent operation of a managed futures enterprise.
4.A system of internal control for the branch unit. The internal control system need not be submitted, however, when it is the same as the one submitted for the enterprise's previous application for permission to establish a branch unit.
5.A CPA audited and attested financial report for the most recent period. When the application is submitted more than six months after the beginning of the fiscal year, a CPA audited and attested financial report for the first six months of the year shall also be submitted.
6.A case review checklist.
7.A declaration stating that the application form and attached documents contain no concealment or misrepresentation.

A managed futures enterprise that applies to establish a branch unit to carry out promotions and solicitations for the business it is allowed to operate shall carry out registration of the branch unit's incorporation within six months from the date of approval by the competent authority, and shall apply to the competent authority for issuance of a certificate of license by filling out an application form and attaching the following documents:
1.Documentary proof of incorporation registration.
2.A CPA audited and attested financial report for the most recent period. The report need not be attached if it is for the same period as the report attached with the application to establish a branch unit.
3.A register, issued by the Futures Association, of the managerial officers and associated persons for the branch unit who have passed the review of their qualifications, with documentation showing their qualifications.
4.A declaration stating that none of the circumstances of Article 5 apply to the managerial officers and associated persons of the branch unit.
5.A declaration stating that none of the managerial officers of the branch unit have violated Article 55 of the Regulations Governing Managed Futures Enterprises.
6.A case review checklist.
7.Documentation showing compliance with the provisions of Article 7.
8.A declaration stating that the application and attachments contain no misrepresentation or concealment.
The approval granted to a managed futures enterprise for the establishment of a branch unit will be revoked if the managed futures enterprise does not apply for the issuance of a certificate of license within the time period set by the preceding paragraph. With legitimate reason, such an enterprise may apply to competent authority for an extension prior to the deadline; such an extension may not exceed six months and shall be granted one time only.